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In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen

and plan to join us if you are in one of these cities this fall.

NETWORKING EVENTS

GLOBAL SUMMITSApril 19-21 – Orlando, FL

SYMPOSIUMS

Mar 24 – Minneapolis, MN

May 5 – Columbus, OH

REGIONAL ROUNDTABLES

Feb 2 – Seattle, WA

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RECENT POSTINGS

The SIG Career Network is

bursting with opportunities.

New jobs are posted daily by some

of the best known global companies in the world for those

seeking careers in sourcing, outsourcing, procurement and

related functions.

For more information go to: www.sig.org/career-center.php

NEW to the Career Network!

• Travelers – posted Jan 25:

• Sourcing Manager

• Otsuka – posted Jan 22:

• Assoc. Director of Strategic Sourcing

• Manager – AP Operations

• Sourcing Industry Group – posted Jan 20:

• EMEA Business Development Director

• Allstate Insurance Co. – posted Jan 18:

• Sr. Consultant – Global Sourcing

• Sr. Consultant – Professional Services

• Aecom – posted January 15:

• Procurement Systems Specialist

• Adobe Systems – posted January 13:

• Senior Sourcing Specialist

• FedEx – posted January 11:

• Sourcing Specialist

• Sourcing Advisor

• Southeastern Grocers – posted January 11:

• Strategic Sourcing Analyst

special member

benefits

• 6 months of free buy-side

access to the Vendor

Evaluation & Assessment Tool (NEAT)

• 2 free Market Intelligence

Reports

• 15% discount on direct

hire placement fees

For more information, go to: http://sig.org/member-discounts

• $20,000 discount on Enlighta

Govern or Risk pilot

• 5 relationship assessment

surveys

• 20% discount on assessment

or implementation services

• 20% discount on research

reports on Chinese cities,

technology parks, providers

and advisory services

• 50% discount off fees

associated with GSOS

Health Check

• 10% discount on all

annual subscriptions

• Complimentary 1-hour

consulting session

• SkillsVillage membership

and software test drives

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Join the discussion in SIG’s Peer2Peer Resource program too!

Stay connected with other SIG members through various social media channels

SOCIAL MEDIA

bit.ly/SIGBlog

New Topic Each Week11:00 am Eastern

(8:00 am Pacific)

Upcoming Free SIG Webinars:

January 28, 2016 Solution Deep Dive: Procure to Pay SolutionsPresented by Zycus

February 2, 2016 Optimizing Business Value and Reducing 3rd Party Risks in Sourcing RelationshipsPresented by Global Sourcing Optimization Services

March 1, 2016 RISK: The 4 Letter Word Your Mother Never Told You AboutPresented by BravoSolution

Register at www.sig.org

For more information and to register for all SIG events:

www.sig.org

Upcoming Town Hall Teleconference:

February 10th

Change Management’s Role in Successful

Transformation Projects

Presented by: Clyde Dornier

Senior Vice President and Chief Procurement Officer

The Freeman Group

SIG Town Hall Teleconferences

bring a small group of buy-side ONLY attendees together for a facilitated

discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.

Calendar of Town Hall Teleconferences

Taking place at 1:00 pm Eastern on the following dates:

February 10 July 13 March 9 August 10 April 13 September 14

May 11 October 12June 8 November 9

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www.sig.org

SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users

Symposiums 2016:

Silicon Valley, CA – Jan 14

Minneapolis, MN – Mar 24

Columbus, OH – May 5

San Francisco Bay Area– Sep 15Toronto, CAN – Sep 22

New York, NY – Sep 29

Regional Roundtables 2016:

Seattle, WA – Feb 2

Hartford, CT – Mar 3

London, UK – Mar 15

Montreal, CAN – Apr 5Cincinnati, OH – Sep 27

Pittsburgh, PA – Nov 3

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www.sig.org

SIG Global Summits are semi-

annual events with 350-450

decision-makers in attendance

• Non-commercialized

• Hundreds of industry thought

leaders

• 70% buy-side

• 4-5 keynote sessions

• Global brands

• 3 days of networking

• CPO Roundtables

• Nearly 50 breakout sessions

69% of delegates are director level or above, of which 43% are VP/C-level

Recent speakers include:

For more information go to: www.siguniversity.org

Online learning environment

Sourcing and Governance certifications with Professional and Executive level courses

Modules with lessons, formative assessments, summative testing and final proctored exam

Certification good for 5 years

Interested in providing input?

Let us know!

For more information go to: sig.org/student-outreach.php

Partnering with Universities

Introducing students to seasoned supply chain executives

Sharing thought leadership with students in class, SIG University courses and at SIG events

Giving access to internship and job postings on the SIG Career Network

Allowing students to get real world insight into supply chain careers

Finding tomorrow's supply chain professionals today

11

How combining industry best practices, process automation and state-of-the-

art technology can ensure governance success in multi-sourcing

environments!

Governance as a Service (GaaS)

January 26, 2016

© 2016 Avasant LLC. All Rights Reserved.

Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic or mechanical

means, including information storage and retrieval devices or systems, without prior written permission from Avasant LLC.

12

CARLOS HERNANDEZPartner

Avasant Partner and Travel &

Transportation Industry Leader

JAMES LEEDirector

Avasant Goverance as a

Service (GaaS) Global

Practice Leader

JOE FRAMPUSPartner

Avasant Partner and Retail,

Manufacturing, and

Distribution Industry Leader

JOHN BORGELTSenior Director

Head of the Freddie Mac

IT Managed Services

(ITMS) Governance

organization

Speaker Introductions:

13

Agenda

About Freddie

Mac & Avasant

The Changing IT

Landscape and

Governance

Governance as

a Service

(GaaS)

Questions &

Answers

Freddie Mac

Case Study

14

Overview of Avasant, LLC

1,000+

engagements40+ countries

$100+ billion

contracts

negotiated

Sourcing

Advisory

IT & Business

Transformation

Governance

as a Service

(GaaS)

Digital

Strategy

Services

Global

Strategy

Avasant

Foundation

Avasant

Law

Global Digital Innovation CouncilDistinguished Fellow Program

15

The Changing IT Landscape and Governance

About Freddie

Mac & Avasant

The Changing IT

Landscape and

Governance

Governance as

a Service

(GaaS)

Questions &

Answers

Freddie Mac

Case Study

16

Polling Question Option #1:

Pick the statement that best represents how your organization is currently managing its portfolio of

global business services relationships:

A.) We have a holistic, comprehensive and strategic approach to managing our global

portfolio of sourcing relationships using advanced tools and technologies to provide forward

looking and outcomes based insights to real-time supplier/service provider performance.

B.) We manage our suppliers and service providers on a global basis using home-grown and some

off the shelf tools/technologies with a focus on contract/SLA compliance.

C.) Our various business functions are responsible for managing the day-to-day relationships

with their vendors and we get procurement involved to assist in contract negotiations

and when serious performance issues develop.

D.) We have no coordinated enterprise-wide approach to managing our global portfolio of

suppliers and service providers.

17

The Sourcing Governance Challenge – Focus on Business Outcomes

Relationships

Operations

Performance

˃ Too many points of contact – multi-sourced ecosystems

˃ Not enough business involvement

˃ Key stakeholders on “all” sides not aligned

˃ Limited understanding of contractual responsibility and

lack of transparency at operational levels

˃ Lack of accountability resulting in duplication and gaps

˃ SLAs are met but client expectations are missed

˃ Metrics are not aligned with business outcomes

˃ Performance and financial incentives not

appropriately managed

Ineffective Governance due to limited capability, lack of operational transparency, and

misalignment with business needs is a key cause of poor sourcing outcomes

Business

Strategy

˃ Limited alignment with the business strategy

˃ Inability to see the big picture for proper decision making

˃ Limited tracking of actual vs. perceived financial benefit of

sourcing

Analytics

Staff

Services

SLAs

Providers

Targets Finances

Projects Portfolios

Scorecard

Compliance

18

Global Business Services (GBS) Value Leakage is a Reality!

Over 51% of contracts are renegotiated before termOver 75% of organizations and third

party providers are not in

compliance with their contract

terms and conditions

Lack of business alignment, service

expectation misses, and operational

disarray leads to about 10-20%

deterioration of the business case

Contract amendments lead to a

further 6-10% reduction in the

business case

Organizations typically spend over 12%

of contract value on governance yet

do not achieve the expected benefits

30-60% of the estimated business case value for sourcing is lost due to ineffective or inadequate governance

19

Polling Question Option #2:

Pick the statement that best represents your perception of the potential global business services

value leakage that may exist with sourcing relationships in your organization:

A.) 0-5% at most. We have a holistic, comprehensive and strategic approach to managing our global

portfolio of sourcing relationships.

B.) 5%-15% at most. We have a fairly advanced team of sourcing professionals that are trying to work

across the organization to optimize sourcing business value.

C.) 15% - 30% at most. We are just beginning to develop our enterprise-wide approach to

managing our global portfolio of sourcing relationships.

D.) I have no idea!

20

Governance as a Service

(GaaS)

About Freddie

Mac & Avasant

The Changing IT

Landscape and

Governance

Governance as

a Service

(GaaS)

Questions &

Answers

Freddie Mac

Case Study

21

Manage ContractsLeverage an integrated 360

degree view to manage

suppliers/providers based on

contract commitments and

business strategy Manage PerformanceImplement effective

SLA/OLA and Performance

Management aligned with

Business requirements

Manage FinancialsReconcile invoices,

manage

overages/charge

backs, control

project/vendor spend,

perform financial

analysis

Manage RelationshipsEffectively manage

relationship with

suppliers/providers through

analytics ensuring high end

customer satisfaction

A Strategic & Holistic Approach to Manage Suppliers/Service Providers

Governance as a Service (GaaS): Core Capabilities

22

GaaS

“GaaS - Empowering Superior Business & Customer-Centric Outcomes”

Governance as a Service (GaaS): Operational Elements

• Provide a one stop repository of

hierarchy based MSA’s and SOW’s

• Update change requests, renewals

and termination

• Alert stakeholders, review disputes and

validate against contract terms and

conditions

• Review and manage portfolio of

providers across various service towers

• Embed and monitor governance plan

• Conduct Customer Satisfaction surveys

• Support and track Issue Management

Financial

Management

Contract

Management

Relationship

Management

Performance

Management

• Track & manage key financial metrics

• Validate and reconcile invoices

• Analyze project spend and TCO

• Assess contract change financial

impact

• Track and capture SLA/OLA metrics

• Generate scorecards

• Trigger alerts for issues and escalation

• Manage risk and outcomes to

achieve contract objectives

23

Freddie Mac Case Study

About Freddie

Mac & Avasant

The Changing IT

Landscape and

Governance

Governance as

a Service

(GaaS)

Questions &

Answers

Freddie Mac

Case Study

24

Freddie Mac’s Objectives

• Establish superior customer-focused, outcomes-based capabilities and enable the new

managed services governance organization (ITMS)to fulfill its mission

• Develop governance competencies to:

• effectively manage FRE risk;

• increase managed services analytics; and

• avoid value leakage of the business case for the various contracts

• Facilitate consistency, efficiency and value of sourcing management & governance

ITMS Mission:

To be an industry leader in the use of managed services to help Freddie Mac excel in a future

competitive market

25

Freddie Mac’s Governance EnvironmentFreddie Mac’s strategy was to secure transactional, analytical, and operational governance support

services to address the requirements of their new managed services governance organization, ITMS.

26

Se

rvic

e D

eliv

ery

Adopting GaaSOptimize Freddie Mac’s existing capabilities and then fully configure and implement a suite of

governance best practices and supporting automation tools/technologies.

Role Based

Dashboards and

Reporting

Workflow

Processes

Performance and

Financial

Management

Document

Management

Enabled Capabilities

Co

nfig

ure

Standard Modularized

Best Practice Processes

Op

timize

Client / Service Provider

Management Capabilities

Governance as a Service

(GaaS)

Governance

Tool

•Contract Terms•SLA’s•D’s & O’s•Governance Library…

Governance Tools

27

Governance as a Service - GaaS

Freddie Mac’s Use of Governance as a Service (GaaS) R

esu

lts Freddie Mac is realizing the

outcomes they expected as well as

significant added value from the

Governance As a Service

approach:

• Service Delivery Outcomes &

Refinements

• Analytics Design & Implementation

• Value Leakage Management

Analytics & Reporting

• Performance Governance

Analytics & Reporting

• Demand & Consumption

Analytics and Reporting

• Process & Tool Enhancements

28

Questions & Answers

About Freddie

Mac & Avasant

The Changing IT

Landscape and

Governance

Governance as

a Service

(GaaS)

Questions &

Answers

Freddie Mac

Case Study

29

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