13-14 May 2014 | Lancaster Hotel

CWS at the Leading Edge

Moderator: Bryan Peña, VP, Contingent Workforce Strategies &Research, Staffing Industry Analysts

Panellists: Vincent Lattimore, International Lead, Contingent Staffing Solutions,

Microsoft Wendy Person, Director, Global External Talent Sourcing,

The Coca-Cola Company Kreetta Ryodi, Head EMEAR Contingent Worker Programme, Cisco

TUES 13 MAY 16:30-17:30 WESTBOURNE 2-4

13-14 May 2014 | Lancaster Hotel

What is “Leading edge?”

13-14 May 2014 | Lancaster Hotel

Programmes are evolving….

13-14 May 2014 | Lancaster Hotel

Operational Approach Strategic Approach

Need Accurately forecast hiring and/or training needs Develop the best talent strategies for longer-term success

Timeline/Planning Horizon

Usually 12 months with a quarterly focusmatches the yearly business plan

Usually 3 years or longer – matches the organisationalstrategic plan

Integrated with Annual or quarterly financial/budgeting process Strategic planning process

Inputs Mostly internal data, some management decisions

Wide range of internal and external information including demographics, business strategies, global trends, etc.

Outputs Staffing plans, skill gaps Human Resource/PeopleStrategies

Scenario Planning Approach

Uses variables to explore different models of staffing

Uses futuring techniques to question current paradigms and explore alternative futures

Forecasting Key focus Only part of the process

Segmentation Focus

Internal demand Internal and external, demand and supply are all segmented

Skills Competencies may be audited or gathered at an individual level

Strategic Capabilities analysed and gathered at the group level

Performed by HR or staffing organisation with input from the business Business, facilitated by HR

Focus Operational Management Strategic Management – Executive and Board– Line and BU ManagersAligns to Business Plan Strategic Plan

Terms used “Predict”, “Calculate” “Explore”, “Design”

13-14 May 2014 | Lancaster Hotel

The Big Question: Where to Next?

Decentralised• Several suppliers• Procurement done

on an ad-hoc basis• Management

done internally

Master Vendor• One supplier

(possibly managing 2nd and 3rd tier suppliers)

• One point of contact

• Direct cost savings on bill rate and usage

• Customised SLA’s and process

Managed Service Provider (MSP)• Contingent

workforce spend under management

• One contact point • Direct cost savings

on bill rate/usage• Customised SLA’s

and process• Non-compliant

spend elimination• Total cost of

ownership savings

Total Talent Management • Total workforce

spend under management

• Complete workforce visibility

• Direct cost savings on bill rate and usage

• Customised SLA’s and process

• Non-compliant spend elimination

• Increased total cost of ownership savings

• Additional productivity and process savings

• High degree of value added services

CW as a Strategic Competitive Advantage• CW talent as business

differentiator• Management

strategies move beyond tactical considerations into strategic ones

• Combination of multiple CW models to solve complex business problems.

• Technology crosses multiple platforms in the enterprise

• Risks managed on a total enterprise basis with big picture focus on risks of action and inaction

Preferred suppliers• Selective set of

suppliers selected• Contracts in place• Service level

agreements (SLA’s) in place

13-14 May 2014 | Lancaster Hotel

What does the future hold?

13-14 May 2014 | Lancaster Hotel

Which of the following are currently in place in your organisation, or are likely to be seriously explored within two years?

61%

44%

62%

62%

52%

63%

47%

85%

27%

45%

28%

29%

39%

28%

45%

12%

Supplier tiering

Planning

MSP

Consolidating

Global

VMS

SOW

Approved list

In Place Today Exploring within 2 years

Source: 2014 Staffing Buyers’ Survey Initial Findings

©2014 by Crain Communications Inc. All rights reserved.

13-14 May 2014 | Lancaster Hotel

Which of the following are currently in place in your organisation, or are likely to be seriously explored within two years?

39%

33%

45%

56%

42%

38%

55%

73%

21%

27%

26%

18%

33%

42%

26%

13%

Direct Sourcing

Master Supplier

HRO

Offshoring

RPO

Trying New

Vendor

Outsourcing

In Place Today Exploring within 2 years

Source: 2014 Staffing Buyers’ Survey Initial Findings

©2014 by Crain Communications Inc. All rights reserved.

13-14 May 2014 | Lancaster Hotel

What are you working on in 2014?• Additional Deployments Of Existing Models, Project Plans And

Timelines, New Savings• Benchmarking - Contingent Worker Proper Classification• Continue To Bring Sow And Outsourcing Spend Into Tool• Continued Global Expansion• Expanding The Internal Cwm Programme From 3 Segments To

7 Segments In The Enterprise.• Getting Our MSPs In Order, Branding The Programme And

Adding Sows• IC Compliance• Implementation Of International Contract Labour Into

Enterprise Processs And VMS• More Fully Utilising Our VMS Technology, And We Are Going

To Tackle Onboarding Issues And Light Industrial Worker Challenges That We Have In Our Programme

• More Sow. Strategic Planning. What Does Our ProgrammeLook Like 5 Years From Now.

• Movement Of Execution-oriented "Consulting" To Contract Labour MSP Programme

• MSP Reviews, VMS Roll Out, And Potential Resourcing Rpo• None At The Moment.• One VMS Tool For All Contingent Labour Spend Europe One

Programme/Portal For All Contingent Labour Spend Europe

• Payroller Rfp Looking For A Solution That Can Handle Low-end Payroll To High End, 1099, Corp To Corp. Supplier Optimization

• Programme To Track All Non-employee Resources, With Facility And/Or Asset Access

• Redeploy VMS, Supplier Consolidation• Restructuring Pricing Model From Rate Card To Mark Up.

Trying To Engage Senior Leaders In Discussions About Centralising Contingent Labour Company-wide (Instead Of Silos Of Contingent Labour)

• Review Market For It Service Providers ( Not Contractor) For Key Skills In Na. Review Sap Services In Europe And Design Optimum Labour Mix. Review Labour Strategy In India.

• Rfp For VMS And MSP• Sow (It And Non-it)• Sow Implementation And Expansion Beyond It• Supplier Rationalisation, Geographic Expansion, Sow Service

Category Expansion• China, Identity Mgmt. - Japan VMS Implementation• We Are In The Process Of Rolling IC Compliance Into Our

Current Programme. (Currently We Only Have Temp Agency Workers In Our. Programme)

13-14 May 2014 | Lancaster Hotel

Well for starters….

Expansion into developing markets Inclusion of non-agency labour Global programme office consolidation

12

CONTINGENT PROGRAMME

WHYWhy did we start one?

WHATWhat has it delivered?

HOWHow did it

grow?

13

14

15BEST PRATICES HAD BEEN ESTABLISHED

16

17

18

19

Kreetta Ryodi, Head Contingent Worker Program EMEAR, Cisco

CWS Summit, 13 May, 2014

Cisco C-Worker

Cisco Confidential 21© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Why C-Worker?

>50%>50%

25k25k

>50%>50%

9090

• % of total annual Indirect spend on services thru suppliers providing contingent workers

• % of total annual Indirect spend on services thru suppliers providing contingent workers

• POs raised quarterly for CW services• POs raised quarterly for CW services

• Of all suppliers are utilised for CW services• Of all suppliers are utilised for CW services

• Countries with CWs• Countries with CWs

Cisco Confidential 22© 2013-2014 Cisco and/or its affiliates. All rights reserved.

C-Worker Today

4Countries

US, Canada, India, China

4Countries

US, Canada, India, China

>70%Of CW spend

>70%Of CW spend

60%Of CWs(30.000)

60%Of CWs(30.000)

90%SOWs $90%SOWs $

>6000 Transaction

s/QTR

>6000 Transaction

s/QTR

1000Suppliers1000Suppliers

Cisco sources every category of work thru C-WorkerCisco sources every category of work thru C-Worker

SOWs are fully incorporated into the VMS moduleSOWs are fully incorporated into the VMS module

Cisco Confidential 23© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Reviews Responses & Presentations (Optional), Creates SOW

Reviews, Rejects or Shortlists Responses

Cisco C-Worker ProgrammeProcess Flow | Statement of Work [RFx]

CONFIDENTIAL & PROPRIETARY

VMS

iPro

c

Submits Response / Proposal

RFX CreatedSSO

Completes Intake, Approves, Distributes

MSP

Supp

lier

Cisc

oStatement of Work StatusVM

Status Key:

Background & Confidentiality Attestation, Worker Activation

Financial Approval

Reviews, Approves

Accepts SOW, Adds Workers

New SOW Created

AutomatedWorker Registration

Reviews, Approves

InternalOnboarding

Auto

-Fee

d fr

om iP

roc

Auto

-Fee

d to

Cis

co

to iP

roc Response Pending Approval

Activated

Confirmed

Confirmed

Pending Approval

Submitted

Submitted

Pending Approval

Pending Supplier Response

Submitted

Submitted

Draft

Work Order Status

Creates Work Order

Worker details feed to HRMS up to 48 hours after a work order is in “confirmed” status

Accepted

Cisco Confidential 24© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Horizontal & Vertical

OptimixationsGeographic

OptimisationsWork

Consolidation6%

savings

ROI including SOW as part of VMS module

SubcontractingCompliancy, Risk MitigationSpendVisibility

Cisco Confidential 25© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Incorporating SOW as part of the VMS module

Training the MSP to execute the SOW and RFx process to meet company unique requirements

Understanding supply base, and properly segmenting it to RFx opportunities

Continuous Hiring Manager Change Management to increase full usage of the SOW module and proper understanding of what SOW means for them

Training and support to suppliers on how to use the tool, and aligning them with Cisco strategies

Executive engagement to demonstrate SOW savings opportunities

SOW Programme Success Factors

Cisco Confidential 26© 2013-2014 Cisco and/or its affiliates. All rights reserved.

C-Worker expansion

Expanding to 15 countries in EMEA thru 2H14-1H15

Expanding to 15 countries in EMEA thru 2H14-1H15

C-Worker made part of new entity “toolkit” as part of

Cisco strategy

C-Worker made part of new entity “toolkit” as part of

Cisco strategy

Application of Full Service & Lite

Service Model to accommodate expansion req.

Application of Full Service & Lite

Service Model to accommodate expansion req.

Agressive expansion of new countriesAgressive expansion of new countries

C-Worker recognised as a must have for all new entitiesC-Worker recognised as a must have for all new entities

Thank you.

Contingent Worker Global Capability

Talent Source Vision & Action Plan

Inconsistently Managed Contingent Staff Workforce

VISION: Deliver an industry leading, best practice contingent staffing workforce programme; to effectively align with business needs and priorities; and to efficiently deliver quality talent in a timely manner at market competitive rates.

ACTION: Microsoft has embarked on a multi-year journey to enhance practices for acquiring and managing contingent staffing resources across the company worldwide.

Talent Source MSP Responsibilities

People Manages supplier performance & pricing End User issue management and resolution Dedicated support team

Technology SME with implementation and use of Talent Source Tool A single tool for simplified, efficient acquisition & management of contingent staff

Process Manages requisitions, evaluations and selection process Facilitates invoicing and payment process Identifies additional savings opportunities

Planning Provides programme reporting and service level performance against standard SLAs and KPIs

Talent Source Programme Benefits

Impr

oved

Pro

cess

es • Single tool for automated requisition and on-boarding

• Globally Implemented Workflows and processes

• Enhanced Rate Management for better quality work at a lower rate

• Reduced Time to Supply Procurement Resources

Budg

etCo

ntro

l • Minimal Costs in the Invoicing Cycle

• Control over Budget Spend, Fees and Expenses

• Update Category Cards for standardisedbilling and PO procedures

Polic

yAd

here

nce • Conforms with

MS Procurement Policies

• Compliance to Classification, Tax and LabourLaw Issues

• StandardisedContract Guidelines

Incr

ease

dVi

sibi

lity • Visibility into

Spend Metrics and business transformation of the procurement process

• Overview of Workforce Productivity, Cost Comparisons, and Compliance to Policies and Procedures

4,359A-

16Countries

>$348m Annual Spend

RELATIONSHIPMANAGEMENT

TECHNOLOGY SERVICE DELIVERY

519V-

TSP Overview

Optimise User Experience and Programmes

Efficiencies through tool, processes and

reporting improvements

Leverage Suppliers Engagements

Develop Suppliers Accountability and

Empowerment

Strengthen continuous Programme

Improvement thru Suppliers

Develop & Implement SRM framework for PS

teams

Design Optimal Governance model to CS and build support

structure

Create Effective Optimal Programmes using the “Outside-In”

Approach

Design Technological Innovative Solutions

Ensure & demonstrate ongoing Contingent

Staff activities at Microsoft are

compliant with local laws, regulations and

corporate policies

Ensure business experience and needs drive our solutionsPromote simplicity, agility, scalability

Develop Business values of CS programmes (workforce management, HR connection, talent pipe creation, business engagement)

Canada

United States

Australia

United Kingdom

Ireland

New ZealandSingapore

India

Talent Source Programme Offices

France

N. America - U.S. US/MSLI ATW Launch: September 2008 MSLI Vendor Launch: October 2011 US/SSP Launch: September 2011 US ATW Launch (1899): October 2012

N. America - Canada Canada ATW Launch (1075): November

2009 Canada ATW/Vendor Launch (1745):

December 2010 Canada ATW Launch (1950): January 2013

EMEA UK ATW Launch: May 2010 UK ATW Rare & Lionhead: February 2011 Ireland ATW & Vendor Launch: October 2010 France ATW & Vendor Launch: October 2011 MS EMEA ATW & Vendor Launch: April 2013 Belgium/Lux ATW & Vendor Launch: March 2012 Netherlands ATW & Vendor Launch: April 2012 Skype Lux ATW & Vendor Launch: March 2013

APAC Australia ATW Launch: June 2010 New Zealand ATW Launch: June 2010 Singapore ATW Launch: July 2010 India ATW Launch: June 2011

Global Footprint

Belgium/Luxemburg

Netherlands

FinlandDenmar

k

SwedenNorway EMEA - Nordics

Finland ATW Launch: May 2012 Denmark ATW & Vendor Launch: July 2012 Sweden ATW & Vendor Launch: July 2012 Norway ATW & Vendor Launch: July 2012 Skype Sweden ATW & Vendor Launch: March 2013

Job Done?

Talent Source – Microsoft’s Journey

2008 2009 2010 2011 2012 2013

• Initial ProgrammeLaunch.

• US Temporary Workers

• Vendor Neutral

• Expanded temporary worker solution to Canada

• Augmented programme with two additional MSPs

• Expanded programme into Europe and Asia

• Integrated with CentralisedAcquisition (Purchase Order) technology solution

• Expanded services to include Statement of Work

• Expanded into additional geographies with hub solutions

• Augmented tools to allow for monthly time entry

• Expanded services to included centralised PMO (light version of MSP services)

The Microsoft ‘Talent Source’ solution was first implemented to support sourcing of US Agency Temporary Workers by outsourcing the management of staffing providers to a single MSP/VMS. Over the next six years, the programme evolved to include countries in all regions, as well as an expanded set of services.

Not Quite….

Optimise User Experience and Programmes

Efficiencies through tool, processes and

reporting improvements

Leverage Suppliers Engagements

Develop Suppliers Accountability and

Empowerment

Strengthen continuous Programme

Improvement thru Suppliers

Develop & Implement SRM framework for PS

teams

Design Optimal Governance model to CS and build support

structure

Create Effective Optimal Programmes using the “Outside-

In” Approach

Design Technological Innovative Solutions

Ensure & demonstrate ongoing Contingent

Staff activities at Microsoft are

compliant with local laws, regulations and

corporate policies

Ensure business experience and needs drive our solutionsPromote simplicity, agility, scalability

Develop Business values of CS programmes (workforce management, HR connection, talent pipe creation, business engagement)

Bringing it all under one roof…

Reporting history & coverage

CA

US

AU

UKIE

NZSG

RU

IN

WE

Focus on Scalability of Solutions…

Offering

Full

Service

Full Service Hub and Spoke

Sourcing – but no associated Treasury solution

Validation – of requirement and classification used plus rate tracking

Tracking – on boarding and off boarding support

Do Nothing – direct agency MSFT relationship with no intermediary

5

3

2

1

0

4

The Future?

….Continuous Innovation (with a small ‘i’ )

13-14 May 2014 | Lancaster Hotel

Questions?