the fine print - sigsig.org/docs2/ws15_the_fine_print_-_a_guide_to_a_strong...the fine print: a...
TRANSCRIPT
DE
NV
ER FALL
SU MMIT
2014
A Guide to a Strong Contract and
a Successful Relationship in General
Corporate Support Services
The Fine Print:
Canon Business Process Services
Ted Ardelean, Director, R&D Marketing
Kevin Shotsberger, Director of Operations Midwest Region
www.sig.org/eval
DE
NV
ER FALL
SU MMIT
2014
Evaluation How-to:
Your feedback drives
SIG Event content
By signing and
submitting your
evaluation, you are
automatically entered
into a prize drawing
Why?
Option 1: App
1. Select Schedule2. Select Schedule by Day3. Select Day4. Select Session5. Scroll to Description 6. Click on the Evaluation link
Option 2: Browser
1. Go to www.sig.org/eval2. Select Session (#WS15)
How?
The Fine Pr int : Contract ing for General Corporate
Support Services
A Guide to a Strong Contract and a Successful Relationship
Ted Ardelean
Kevin Shotsberger
Presented by
Ted Ardelean
Director
R&D Marketing
Kevin
Shotsberger
Director of
Operations –
Midwest Region
4
About Canon Business Process Services, Inc .
S u b s i d i a r y o f C a n o n U . S . A . , a C a n o n G r o u p C o m p a n y
S e r v i c e s
• BPO: AP, document processing, legal coding
• DPO: Imaging, records management, print, mail
• Office Services: Reception, hospitality, A/V, Admin Services
• eDiscovery: Physical, digital, consulting, technology
5 , 0 0 0 p e o p l e
S e r v i c e d e l i v e r y :
• On-site, Off-site, Off-shore processing centers
• Six-sigma process excellence based methodology
• Customized, supplementing client technology with CBPS technology
I A O P T o p 1 0 0 G l o b a l O u t s o u r c i n g L e a d e r 2 0 0 7 t o 2 0 1 4
5
S e r v i c e d e l i ve r y: • On-site, Off-site, Off-shore processing centers
• Six-sigma process excellence based methodology
• Customized, supplementing client technology with CBPS
technology
S e r v i c es• BPO: AP, document processing, legal coding
• DPO: Imaging, records management, print, mail
• Office Services: Reception, hospitality, A/V, Admin Services
• eDiscovery: Physical, digital, consulting, technology
S u b s i d i a r y o f C a n o n U . S . A. ,
a C a n o n G r o u p C o m p a n y
5 , 0 0 0 p e o p l e
I AO P To p 1 0 0 G l o b a l
O u t s o ur c i ng L e a d e r 2 0 0 7 t o
2 0 1 4
About Canon Business Process Services, Inc .
6
Agenda
ON-SITE CORPORATE SUPPORT
SERVICE S OVERVIEW• Range and Scope of Services
• On-Site Service Characteristics and Requirements
CLIENT REQUIREMENTS AND
CONTRACT CONSIDERATIONS FOR:• Employees and Staffing
• Equipment and Supplies
• Disaster recovery Considerations
• Contract Change Dynamics
• Mutual Risks and Liabilities
• Serviced Delivery Considerations
• Ensuring the Value of SLA’s
• Potential Support Services Outcomes and Impacts
Q&A
7
Overview: Range and Scope of Support Services
C O R P O R A T E S U P P O R T S E R V I C E S P R O V I D E D
O N - S I T E C AN B E O F F - S I T E AN D O F F - S H O R E C AN B E
• Mailroom, Shipping & Receiving
• Central reprographics (print/copy centers) and
office print management
• Document Processing Centers (combined mail,
print, scanning activities)
• Records Management and File Room
Management
• Reception and Telephone Console Operation
• Audio Visual and Conference management
• Concierge Services
• Light office maintenance
• Facilities Management Administration
• Material handling and internal logistics
• Professional Administrative Services
• Overflow reprographics (print/copy centers)
• Document Processing Centers (scanning
activities)
• Records Storage
• Hard copy imaging conversion
• Indexing of scanned documents
• Quality Assurance controls
8
On-si te Service Character ist ics That Impact Contract
On-site Service
Characteristics
SLA
Employee
Concerns
Equipment &
Supplies
Disaster &
Recovery
Exceptions to
Scope of Work
Start-up &
Termination
Risk and
Liability
Service
Delivery
9
Employees/Staff ing
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Benefits Offered
• Compensation and salary ranges
• Hiring staff back in-house or transfer to a new
provider
• Bonded, background check expenses
• Easy staff placement or discharge
• Permanent or Temporary Staff
• Similar vacation and holiday policy, HC plan,
401K Plan to that of client
• Maintain salary for certain staff being
outsourced (Re-badged)
• Restrictions: Employee transfers 20% fee.
Enablers: SOP documentation for job continuity
• Bond coverage ‒ 1 mil. each employee
• In placement provider has final decision
• In discharge, client has final decision
• Not a contract issue as much as a cultural issue
10
Equipment and Suppl ies
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Flexibility to replace equipment any time at no
charge (e.g. print, scan & mail equipment)
• No mark-up on supplies
• Volume discounts benefits (e.g. UPS, FedEx,
Staples, toner, postage, etc.)
• 10% of equipment replaceable during life cycle
• Leases assumed by client upon service
termination, prior to contract expiration
• Purchases made in client name. Client pays
supplies directly. Provider distributes reviews,
approves and processes invoices.
• Provider sets up client account. Client gets
better price, by leveraging providers buying
power. No mark-up
11
Disaster Recovery Preparedness
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Back-up, over-flow facility
• Established Policy & Procedure, training
• Provider contingency facility or contract with 3rd
party, as backup
• Joint plan. Provider required to train staff to
follows client policy and procedures
12
Except ions to Scope of Work
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Freedom/flexibility to quickly change, redirect
services provided
• No formal change order or contract
amendments for scope of service
• Amendments to service scope and price
• Scope of service written in broadest terms.
• Too much client interference can erode provider
margin, interfere with SLA
• Provider exposed to greater liability.
Comprehensive, limited liability ($1 to $10
million) carried by provider
• For significant and permanent service changes
(add a service) contract amendments are made
13
Start -up/terminat ion and changing providers
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Start-up and implementation planning and costs
• Terminate for convenience or for cause
• Written implementation plan and description of
client involvement requirements
• Costs amortized into monthly payments
• Outstanding lease obligations recovered upon
termination for convenience
• Employee transfer fee 20% of annual salary
• Full knowledge transfer and coordination with
client or new provider
14
Mutual Risks and Liabi l i ty Protect ion
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Unlimited Liability vs. Defined Liability
• Comprehensive insurance coverage
• Disaster recovery and information's security
• Price guarantee/Volume guarantee
• Limit provider liability through caps $1 to 10
million
• Mandatory staff training on information security
practices
• Provider at risk when the actual client
volume/data is less than what was proposed‒ Minimum volume clauses protect both parties
15
Service Del ivery and Operat ional Performance
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• Can Provider cover all client locations
• Are there specific or unique operating
requirements
‒ Hours of operation, partial and multi-shift
needs
‒ Limited staffing at some locations
‒ -100% back-fill coverage
• “At-Risk” Parameters
• Gain Share pricing model
• Small, remote, locations may require 3rd party
support for 100% back-fill or part time (Floaters)
support backup
• SLA for machine maintenance may need to be
relaxed for remote locations.
• Penalties might need to vary according to scope
and location size
• Provider financially obligated to certain SLA
attainment
• Creates win-win opportunity
16
Ensur ing the Value of SLA’s
C O M M O N C L I E N T R E Q U I R EM E N TS C O N T R AC T I S S U E AN D P R AC T I C E
• What service levels should be included
• How will performance be measured and
reported
• To what level does the supplier agree to perform
• Can the minimum and expected service levels
change over time
• Will the SLA include service-level credits (“At
Risk”)
• Strong correlation with the value the supplier is
expected to deliver
• Availability of data to measure performance
• Focus – Less metrics, clear measurement
standard and formula – units, time, etc.
• Establish minimum and expected (normal)
service level
• Create enhanced targets if “Gain Share” is
contractual
• SLA can include a fixed schedule of increasing
requirements
• Performance can be adjusted as a % of prior
year’s performance
• Credits have substantial advantages over
damages, and are easier to collect
17
Advancing Business Performance to a Higher Level
Thank [email protected]
Tel: 212-502-2122
www.cbps.canon.com
Questions
DE
NV
ER FALL
SU MMIT
2014
Session #WS15
The Fine Print: A Guide to a Strong Contract and a Successful
Relationship in General Corporate Support Services
Speakers:
Ted Ardelean, Director, R&D Marketing
Tel: 212-502-2122
Kevin Shotsberger
Director of Operations Midwest Region