The Situation

The company entered into a multi-year contract with one of the Tier I suppliers for providing specific HR services across geographies. The supplier transitioned the services and in 4 months moved to a routine delivery. While the supplier was delivering these services, parts of the HR function and the business were not happy with the delivery as well as the spends. The value being delivered by the service provider was not understood. It was a reputation risk for the owner of the contract. The situation needed to be corrected.

The Task

To deliver a significant improvement in the reputation of the HR function and in the delivery of the services by the supplier. The value being delivered by the supplier needed to be showcased to the business as well as HR Teams.

The Action / Approach

An analysis of the contract and delivery of the services revealed the following :
– Weak or No Governance across Geographies
– Limited Knowledge about the contract
– Lack of or Limited Ownership for the contract in several Geographies
These caused delays in decisions as well as perceived ‘high spends’ with no real return.

Some changes were put in place :
– Establish Ownership for the services (and the contract) at the local level ;
– Commence a formal Periodic Governance of the contract, Services Delivered, expected and delivered KPIs ; Improvement areas etc.
– Circulate a summary of the output to the key stakeholders at the local and regional level
– Included as an agenda item in the Regional Forums

The Result

Value was delivered by;
-Improved KPIs (by about 25%) and Performance
– Complete understanding of the contracted services and the reduced spends (by 10%)
-Improved reputation, relationships, confidence and value delivered across the business

Pains relieved included;
-Poor reputation of procurement/HR Services contract in the business
-Poor business alignment and engagement

Over a period of time these led to,

-Enhanced reputation through increased relevance, alignment and impact with colleagues and suppliers
-The team were able to make more informed decisions, quickly, objectively and transparently

Focus In On: Responsible for Developing or Implementing a Sourcing Strategy

New Areas of Value:

Improved relationships with suppliers and partners

Improved reputation, relationships, confidence and value delivered across the business

Selecting and managing best value suppliers in line with risk appetite

Improvements around:

Poor reputation of sourcing in the business

Poor business alignment & engagement