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RECENT POSTINGS

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NEW to the Career Network!

•Gap Inc. – posted May 26:•Category Manager II, Digital Sourcing

• Ross Stores – posted May 19:• Senior Analyst, Strategic Sourcing

•Whirlpool – posted May 9:• Procurement Project Manager – IT

• Strategic Sourcing Specialist - Indirect

• Senior Sourcing Specialist – Products

• Senior Sourcing Specialist – Electronics

• Strategic Sourcing Senior Manager

•Denali Sourcing Services – posted May 9:• Sourcing Associate/Senior Associate

•Genentech – posted May 6:•Associate Director – Pharma

Procurement

•Guidewell/Florida Blue – posted May 3:• Senior Manager, Procurement

• Travelers – posted April 29:•Manager, Supplier Management

• Battelle Memorial Institute – posted April 27:• Senior Strategic Sourcing Specialist

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Susan DaCostaFidelity Investments

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Finding tomorrow's supply chain professionals today

May 26, 2016

How to Continuously Improve Your

External Workforce Management Program

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Internal

Our Webinar Speakers

Meghan Maciolek

Director of Complementary

Workforce

Scott Moorhouse

Consultant

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

Today’s Agenda

• SAP Fieldglass approach to continuous improvement

• GSK case study

• Program overview

• Factors impacting program value

• Steps taken to optimize existing model and areas of focus

• Project outcome

• Audience Q&A

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14

Temporary/Agency

Workers

SOW

Consultants

Independent

Contractors

Fundamental Shift in the Composition of the Workforce

30%-50% of total workforce

comprises non-employees

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15

Benefits to Customers

V I S I B I L I T Y E F F I C I E N C Y Q U A L I T Y

C O S TC O M P L I A N C E

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16

Fieldglass Approach to Continuous ImprovementP

RO

GR

AM

V

AL

UE

T I M E

Growing Value

Plateauing Value

LAUNCH

ACCELERATION

NEW VALUE

Diminishing Value

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17

Fieldglass Approach to Continuous ImprovementP

RO

GR

AM

V

AL

UE

T I M E

LAUNCH

ACCELERATION

NEW VALUE

PMO Workshop

Best Practices

Account Services

Benchmarking

VoC Program

Program Maturity Model

CONTINUOUS

IMPROVEMENT

Who is GlaxoSmithKline (GSK)

GSK is a science-led global healthcare company developing innovative medicines, vaccines and consumer healthcare products.

These products are used by millions of people around the world contributing to their health and allowing them to do more, feel better, live longer.

GSK aims to make their products available, accessible and affordable to as many people who need them as possible.

Do more, feel better, live longer.

What Does GSK Do?

GSK researches, develops and makes a broad range of innovative products in three primary business areas.

Pharmaceuticals Vaccines Consumer Healthcare

Overview – GSK’s Global Footprint

With GSK headquartered in the UK, there is a commercial presence in more than 115 countries. The GSK manufacturing network covers 74 sites and the largest R&D centers are based in the Americas and EMEA.

GSK Human Capital Snapshot & CW Ambition

Ambition

Created in 2013, the intent of the CW Service Center of Excellence is to provide all managers with the ability to make informed decisions around the procurement and management of their CW workforce.

100,000PERMANENT EMPLOYEES

GSK Human Capital Snapshot & CW Ambition

The CWS manages systems, process, governance, initiatives and suppliers globally related to our complementary workforce.

Agency Workers (AW) Statement of Work (SOW) Business Process

Outsourcing (BPO)

Engaged on daily/hourly rate with direct supervision from GSK manager

Paid based on deliverables for specific work. No direct management from GSK

Outsourcing of entire engagement or process

Estimated 54,000+ complementary workers globally

GSK’s Third Party Support Structure

CWProgram &

Service

VMSSAP Fieldglass

UK, US

MSPBartech

UK, US, BE

IDMWorkday

Global

Optimization Timeline: How Did We Get There?

October 2013

CW Service Center of Excellence established

Service Delivery Model (SDM) Diagnostic completed. Scope of diagnostic: 24 markets within GSK

January – April 2014

June – August 2014:

Proposal for Pilot CW Service in LATAM

Challenge from Bill Louv SVP, Core Business Services

August 2014

Sept – Nov 2014:

Commence AW Optimization Project

24

Question posed by SVP to CW Service and Procurement teams in 2014: What is the roadmap and intent for expanding these services?

Question Posed in 2014: What Value Does the Existing Service Bring to GSK?

What kinds of factors can impact the perception of program value?

• Changes in business priorities

• Industry practices

• Legal or regulatory requirements

• Change in program ownership

Whether you are faced with one or all of these factors, it’s critical that you continuously evaluate and adjust your strategies to ensure success.

COMPLIANCE REDUCE COSTINCREASE

EFFICIENCY

VALUE PROPOSITION OF CW SERVICE

IMPROVE QUALITY

Why Do You Want to Continuously Improve or Optimize Your Program Model?

Continuous improvement…

...means challenging and questioning existing ways of working, with the intention to achieve even more and seeking out and acting on opportunities for improvement.

…is not necessarily synonymous with ‘big change.’ Small improvements can add up to a significant shift overall.

…is achieved by systematically testing and refining your improvement ideas. You can measure whether they’re having the expected impact and in turn, have confidence when implementing a new standard.

What Steps Did We Take to Optimize the Existing Model?

Set the program’s goals and objectives

– What does success look like? What are the UK/US and vaccine programs doing well now? What do we want to aim for 2015-2018?

– What do we want to achieve as a team and as individual groups supporting the process?

Overcome challenges to sustaining program value

– Change in program ownership and alignment

– Prioritization of additional enterprise strategies

– Transparency of value to all stakeholders

Identify processes that are working and enhance those that need improvement

– Premise for optimization project – critical need to identify which areas we will focus on to enhance and which we can replicate and scale to meet business needs

Areas of Focus for Optimization: What Can We Replicate & What Can We Enhance?

Operational Diagnostic

– Value stream mapping

– End-to-end process diagnostic

– Identify areas for reduction in touch time, point of entry into PMO and process efficiencies

Program Governance and Escalation Management

– Review of overall program governance and RACI

– Issue resolution and management- recommendation for future state

– Management of existing CW Service governance and exception processes- recommendation for future state and identification of additional opportunities for savings

Strategic Program Diagnostic

– Review overall GSK Link Program structure and determine improvements:

• Identify strategic goals and alignment

• Establish clear RACI between all involved parties (Procurement, Bartech, SAP Fieldglass, CW Service and all extended teams)

• SAP Fieldglass PMM

• Review of maturity model assessment

Optimization Project Framework: How Did We Do It?

• Voice of the Customer• Voice of the Process• System Review• General hypothesis

Data Collection

• Develop improvement levers• Identify lead and lag measures• Quantify and agree benefits• Action planning

Diagnose

• Design• Implement• Embed and grow

Design & Implement

Project Outcome: What Were We Able to Achieve?

PROGRAM COST SAVINGS– Significant savings achieved through alignment and support of Procurement ‘Plan of

Purchase’– Savings achieved through enhancement and automation of processes, e.g. rate increases,

term limits, AWR bonus– ~ £5M since April 2015

GOVERNANCE – Automated process for Exceptions (Rate Increases, Term, AWR bonus)– Visibility into term lengths across organizations– Standard review process with Legal Council– More robust Governance Council

PROGRAM SERVICE ENHANCEMENTS– SAP Fieldglass PMM– Implementation of Helpdesk– Service Performance Management Systems– Enhanced reporting and ‘monitor dashboard– Risk register established for CW Service

Project Outcome: What Were We Able to Achieve?

Area of Optimization Description Desired outcome

SAP Fieldglass Program Maturity Model

Support the facilitation of the PMM exercise for optimizing technology utilization

Facilitation of annual workshops alongside SOW review

Service Performance Management

Support the identification and Implementation of a robust service performance management system (Metrics, Tiered Review, behaviors)

•Set up infrastructure of the entire performance management system• Coaching for all participants

Stakeholder Mapping Provide tools and support to development of a robust Stakeholder Map

•Determine plan for stakeholder engagement•Incorporate review of map into Service Performance management

Delivery Tracker Support the development of key diagnostic lead and lag metrics and review forums

•Develop metrics, process and modality for aligning project work between all parties

Change Management Provide consultancy on development of change management plan for service strategy execution and diagnostic delivery

•Close link with Implementation/project plan. Have change management plan for certain group(s), e.g. masterful, emergent, directive, self-assembly. ‘How do we get people to buy into change’ whatever that change may be.

Strategy Deployment Facilitate the execution of strategy deployment with team and executive program sponsors

•Agree what are we going after as an organization, what are the big wins – WIGS (wildly important goals) – what does the business tell us we really need to do?

MSP Operational Processes

Validate the optimized MSP processes are aligned to agreed activities. Support the execution planning

• Agreement on process and method to manage• What does it affect/impact (contracts, etc).

Risk Provide tools and consultancy to conduct riskassessment and mitigation planning of proposed changes

• Comprehensive risk treatment and mitigation plan for CW Service and program

What Did We Learn?

• Define early, and clearly, ‘what does success look like?’

• Supplier/vendor optimization should be synonymous with program optimization

• Have a dynamic articulation of your program’s value

Q&A Scott Moorhouse

SAP Fieldglass Consultant

scott.moorhouse@sap.com