Sourcing & Procurement: A Trusted Advisor Rick Wertsching, Vice President, Sourcing & Procurement The Walt Disney Company ISM Indirect Procurement 2015 Orlando, FL December 3, 2105

Stakeholder / Client

Stakeholder: • A person with an interest or concern in something,

especially a business. • A stakeholder is any person, organization, social

group, or society at large that has a stake in the business. Thus, stakeholders can be internal or external to the business. A stake is a vital interest in the business or its activities

Client: • Customer of a professional service provider, or the

principal of an agent or contractor. 2

Who are the Stakeholders/Clients?

• Finance / Audit • Legal • Administration (HR, Facilities, Shared Services) • C-Suite • Technical

(IT/Engineering Services) • Operations • Creative

(e.g. Marketing) ©

3

Trusted Advisor

A trusted advisor is a relationship in which virtually all issues, personal and professional are open to discussion and exploration. The trusted advisor is the person the client turns to when and issue first arises.

Subject Matter Expert (SME)

SME plus Affiliated Field

Valuable Resource

Trusted Advisor Br

eadt

h of

Bus

ines

s Iss

ues

Depth of Personal Relationship

David H. Maister, Charles H. Green and Robert M. Galford. The Trusted Advisor. New York: The Free Press, 2000. Pg 30, Fig 2.1. The Evolution of a Client-Advisor Relationship.

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Stake Holder Mapping

Stake Holder Subject Matter Expert

SME + Affiliated

Field

Valuable Resource

Trusted Advisor

Technical (IT/Engineering Services)

Operations

HR

Legal

Finance / Audit

C-Suite

© 5

Building Trust

• Credibility • Reliability • Connected • Selflessness • Integrity

6 ©

Tactics to Building Trust

• Key Stakeholder meetings (e.g. staff & strategy meetings)

• Product & Service Showcases • Embedded in the business • Social – After hours • Be visible • Publish or Perish

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©

Develop the Right Mindset and Behaviors

• We are teachers • Do what you say you are going to do • Sense of urgency • Listen • Self awareness • Care • Put them first

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©

Early Involvement Matters

Early Involvement Matters

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Project Planning DemandSpecification

RFI/RFP Negotiation SupplierSelection

Contract Implementation

FY00-03 FY07

When Strategic Sourcing becomes involved at these stages, the range of savings is 0-11%

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Value Proposition

– Commercial Terms – Brand Protection – Innovation – Revenue Generation – Link to Marketplace – Market Intelligence – Category Knowledge

– Total Cost of Ownership – Quality and Timeliness – Environmental Compliance – International Labor

Standards Compliance – Supplier Diversity – Business Continuity – Strategy

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