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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

Page 1© 2010 CapitalWave, Inc. | All rights reserved.FinancialTrainingSolutions

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

2

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

3

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.

4

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).

5

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.

6

Larry Bortstein

P: 646-240-4872F: 866-955-9402

lbortstein@bandilaw.com

275 Madison AvenueSuite 1518

New York, NY 10016

7

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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