Post on 22-May-2015
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Consultancy Special Interest Group
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ASTD Presents – “Working with External Vendors Forum”
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A division of CapitalWave Inc.© 2010 CapitalWave, Inc. | All rights reserved.
FinancialTrainingSolutions
Participants
Introduction:
James Musumeci, PhD, Director: Touro CollegeKi b l M b A t Di t P f i l St di B h C llKimberly Maybar, Asst. Director Professional Studies: Baruch College
Panelists:
Larry Bortstein, Attorney: B and I Law
Ingrid Giordano, Citigroup: Director Citi Program Management
Ann Marie Morris Alliance Bernstein : Multi Sector Senior ManagerAnn Marie Morris, Alliance Bernstein : Multi-Sector Senior Manager
Dane Cannon, SkillSoft: Account Executive
Moderator:
Bryant Nielson, Financial Training Solutions: Director
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Thoughts on Vendor Management
Presentation to the American Society of Training & DevelopmentSeptember 20, 2010
Confidential
Build or transform vendor relationships
Complete corporate restructurings
Maximize efficiencies in the vendor contracting process
Engage specific expertise to complement in-house resources
For clients who need to: We bring expertise in:
Handling technology and outsourcing transactions
Integrating and rationalizing vendor contracts
Creating risk-based, self-service vendorcontracting processes
Interfacing with business teams and in-house counsel
What We Do
We help clients optimize business transactions.
1
Detailed Practice Areas
Software & InfrastructureApplication DevelopmentMaintenance & SupportFree & Open Source LicensingUser & Rights ManagementData Center & Co-LocationHardware Purchase & LeasingPhysical & Logical SecurityLAN/WAN/MANDomains & IPCabling
Global Sourcing (ITO/BPO)Information Technology, Finance & Accounting, HR & Benefits, Help Desk & Call Center, Other Business Processes
Data & Digital ContentMarket Data & Data ManagementContent Distribution & LicensingNon-Disclosure & ConfidentialityDatabase Admin & ManagementData Protection & SecurityPrivacy & Data ProtectionArchiving & Data RetentionData Mining & AnalyticsTrans-Border Data FlowElectronic Discovery
Corporate Real EstateLeasingDesign & ConstructionProperty Management
IT ServicesConsulting & Professional ServicesDesk-side Support & Break/FixOpen Source Risk ManagementSAAS, ASP & Cloud ServicesWireless & Converged VoiceWeb Development & DesignHelp Desk & Service DeskFile & Print ServicesEngineering & DesignHosted Applications
Corporate ServicesTravel & ExpensesFreight & ShippingCorporate CardOffice Supply
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3 Reasons for a Vendor Management ProgramFinancial Controls
• Avoid Rogue Spending• Rigorous Vendor Selection Process (considering both price and
capabilities)
Legal Risk Management• Contractual Risk Allocation• Contractual Rights, Obligations & Remedies
Regulatory Risk Management• Data – customers must know where their data is and know its safe• Financial Services
o Risk Assessmento Monitoring & Controls
• Due Diligence• Proper contract• On-going monitoring & audits
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Attributes of a Successful Vendor Management ProgramInternal stakeholders want to work within the vendor management process because the Legal process actually adds value/manages risk and is perceived as adding value/managing risk.
Process is repeatable and predictable.
Lawyers focus on high risk legal & regulatory matters.
Business Teams focus on financial matters and business requirements.
Collect information before and after signing – and use it to make decisions and manage business, financial, legal and regulatory risk.
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Vendor Risk Assessment
Vendor will have access to confidential information about customer employees (e.g., health information, social security numbers).
Vendor will have access to important confidential information (including material non-public information, source code to customer-owned software, research, and pitch materials) about customer or its clients.
Vendor will have access to personally identifiable information about customer clients that are natural persons (e.g., social security numbers, address, name, account information).
Vendor will provide a mission critical function to a regulated function of customer (e.g., the broker-dealer or commercial bank).
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Vendor Risk Assessment Continued
Vendor will provide services from a country other than the country in which customer uses the services (e.g., a Vendor’s India entity provides services to customer’s U.S. operations).
Vendor will develop and provide intellectual property to be owned by customer (e.g., software code, models, pitch materials and reports).
Vendor will be providing IT services such as implementation/migration services or IT development services where reference to acceptance provisions and acceptance criteria is a condition to a significant payment to Vendor.
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Larry Bortstein
P: 646-240-4872F: 866-955-9402
lbortstein@bandilaw.com
275 Madison AvenueSuite 1518
New York, NY 10016
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Vendor Management
Ann Marie MorrisASTD Meeting September 20 2010ASTD Meeting, September 20, 2010
Once upon a timetime…
…back in the late ‘90’s
Will you sleep better tonight knowing….
That our military purchases its tanks from the cheapest
vendor?
Do companies hire trainers and coaches
the same way?
QuickTime™ and a decompressor
are needed to see this picture.Will train f Or do we your folks--
cheap!Or do we
sell l cheap! ourselves
that way?y
So where does that leave us?
Well, We Have Evolved…
We focus on
Build long-term relation
Thought leadersTrusted
AdvisorsWe sit
t th ROI relation-ships
Advisors at the table
together
Can we think…
( l d ’ (…please don’t make me say it)
What Should We Look at More Closely?More Closely?
To Improve Relationships, We Need to Assess These Componentsp
1. Continuous Improvement & InnovationInnovation
2. Governance Structure/Decision-MakingMaking
3. Metrics
4. Skills
5. Communication 5. Communication
(…and a thought about relationships)
D d fi “ ti i t” th
Continuous Improvement & InnovationDo you define “continuous improvement” the same way?Is your definition of “value” the same?Is your definition of value the same? Are you a “thought leader?”• White papers, articles, blogs, speeches?
Do you sit at the table together?A k l ti hi
Governance
• Are key relationship management roles understood?
• Do you know how to escalate issues?
• Are decision-making processes well-understood?
Metrics
Are you focused on ROI?Are you measuring what matters?Are you measuring what matters?Do your metrics tell you where to spend money, time, resources?y, ,Do you measure lagging or predictive indicators?
Skills
Does everyone understand our business and our bj i ?objectives?
Do we have effective project management?Do those on the front line collaborate and resolve issues
15
effectively? Are there incentives to motivate collaborative behavior?
Communication
D h i f tiDo you share information or keep it close to the vest? How do you resolve issues?
One Last Thought about Relationshipsp
If you are a consultant, does the phrase, “Let’s expand our
relationship” make you feel like this?
If you are a hiringIf you are a hiring consultants, do you reach for
QuickTime™ and a decompressor
are needed to see this picture.
you eac oyour wallet?
To Improve Relationships, Ponder These Componentsp
1. Continuous Improvement & InnovationInnovation
2. Governance Structure/Decision MakingStructure/Decision-Making
3. Metrics
4. Skills
5. Communication 5. Communication
Q i kTi ™ dQuickTime™ and a decompressor
are needed to see this picture.
QuickTime™ and a decompressor
are needed to see this picture.
A Challenge in Client-Supplier Relationships in Learning?
Dane Cannon, Account ExecutiveSeptember 20, 2010
There will be a test!
Question 1: Buyers
Are you buying primarily to:
A) expand learning to address a backlog of requests?
B) increase savings by managing learning content & services?B) increase savings by managing learning content & services?
C) align learning to critical job roles and increased need for talent?
D) integrate key learning assets with talent management efforts?
E) link performance of human capital to competitive advantage?
The SkillSoft Learning Growth Model®
A framework that maps the path through stages of learning maturity• Aligns learning to critical needs and business drivers• Aligns learning to critical needs and business drivers• Places learning within context of organization and business process• Provides strategies to increase performance and accelerate business
results Goal State: Where do you want
Stage 5Optimize
you want to be?
Stage 4
St 1
Stage 2Target
Stage 3Align
OptimizeStageIntegrate
Stage 1Supplement
Question 2: Sellers
Are you focused on:
A) price and product?
B) a specific operational problem?B) a specific operational problem?
C) a critical business issue ?
D) developing a mutually beneficial, long-term strategy that benefits both businesses?
Beyond Selling Value
What Is the Relationship?
The evolution of a business relationship
Stage 5
Stage 3
Stage 4
Systematic
Optimized
Strategic
Stage 1
Stage 2
Targeted
Supplemental
VendorProblem Solver
Business Resource
Strategic Resource
Impact on the Characteristics of a Transaction
Vendor selection based mostly upon price
Partner selection based mostly upon relationship
Stage 5
Stage 3
Stage 4
Stage 1
Stage 2
VendorProblem Solver
Business Resource
Strategic Resource
So What?
• Buyers
• Sellers
Thank you for your participation!
http://www.skillsoft.com/infocenter/white_papers.asp
dane cannon@skillsoft com | 347 275 3640dane_cannon@skillsoft.com | 347-275-3640
Consultancy SIG
Consultancy SIG
Bryant Nielson, Chairman
Next Program:
“Professional Speaking Can Make or Break You”o ess o al Spea g Ca Ma e o ea ouPresenter: Mike Taubleb, Chief Match Maker
Promenade Speakers Bureau, LLC
Date: October 18th, 2010Time: 6-8 pmLocation: Touro Collegeg
65 Broadway (the heart of the Financial District)
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