Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Managing Strategic Relationships,Key Governance Processes,2004,China Outsourcing Summit,September 15-16 Beijing,China,Procter&Gamble,$44,billionconsumergoods corporation,Nearly 100,000 employeesworldwide,28 on the Fortune 500 list,Marketsmorethan 300 brandstomorethen 5billionconsumers inover 160 countries,Made up of GlobalBusinessUnits(productcategories),Market Development Organizations(geographicalunits),andGlobalBusiness,Services(asharedservicesorganization),2,William Metz,Current role:,Section ManagerGlobal Business Services-PMO,Previousexperience:,Project Managerfor recentApplicationDevelopment&Maintenance outsourcing effort,Section ManagerITStrategic Sourcing,Section ManagerTechnologySolutionsConsulting,Application&DataTechnologies Architectwith responsibility forapplicationdevelopmenttechnologies,Founder of P&Gs Jedicompetencydevelopmentprogram,Contact Information:,3,What Well Cover,P&G,sSourcingStory,KeyGovernanceProcesses,GovernanceChallenges,4,P&GsSourcingStory,Created GlobalBusiness Services(GBS)Organization,8500employees,morethen40 products and services.,Organizedin servicebundles whichinclude:Central IT,WorkplaceServices,IT Business Solutions(SupplyChain),Accounting&Financial Reporting,Employee Services,Purchasing Services andBusinessInformation Services.,Established global data centers inCincinnati,Brussels,andSingaporeandshared servicecenters inManila,CostaRica,andNewcastle.,Established lowcostADMcenters inWarsaw and Torontoand begansetting uplowcostoffshore IT serviceswiththird party suppliers(e.g.ABAP Factory,Notes Factory,etc).,Globalized,consolidated,integrated hundredsof work processes,systems,and technologiesin more then 70 countries.,Delivered$500million insavings in 3 years.,5,P&GsSourcingStory,Established ITStrategicSourcing Organization,ConductedSourcing Assessment,DevelopedSourcingPlans,SourcingFinancialModel,Site Evaluation Model,Continuedto build business with low cost offshorethird party suppliers(e.g.Infrastructure,Web Applications,eLearning).,Eliminatedlarge numbersof local staffaugmentation contractors.,2002Investigated Large BPO Deal,2003/2004 Signed Several Strategic SourcingAgreements,IT Infrastructure,Desktops,ApplicationDevelopment&Maintenance(HP),FacilitiesManagement(Jones Lang LaSalle),HR/Employee Services(IBM),Consumer Relations(Sykes),Transactional Accounts Payable(HP),6,Shared ServicesModel,Global BusinessServices,GBS,Supplier,Client&Site,Services,Services,Business Units,Global organization,Regional service delivery,Service/Productfocus,HP,JonesLangLaSalle,IBM,Etc.,GBS Past,Customer aligned,Siterepresentation,Governance,Manages Supplier,Relationship,Performance,Key Processes,GBS NG,7,Service Integration,Business,Units,Global,Business,Services,HP,IBM,JLL,OtherSuppliers,GBSServices,SupplierServices,On-line ServiceCatalog,GBS Service Supplier ServiceMapping,Standard End End Service Request/Fulfillment Process,8,GovernanceDefined,Governanceis abroad term used todescribe the business processes necessary tomanage theinternaland external relationships involvedin strategic sourcing relationships,9,GovernanceMission,The mission ofgovernanceis to ensure the delivery ofsourcing goalsthrough:,Ongoing expectationsmanagement with suppliers,Verification ofthequality delivery ofagreed services,Collaborative managementof the contractto meet evolving business needs,10,Key GovernanceRoles,Relationship Manager,TransitionManager,Process Owners,Subject MatterExperts,11,SMEs,Establishservice requestprocessesfortheirarea ofexpertise,Monitor delivery ofservice,Prioritizework,Answer questions andresolve issues,Set direction with supplierExamples:Platforms,Network,End User Computing,Content Management,DataServices,ERP,12,Key GovernanceProcesses,Relationship Management,Service RequestManagement,Service ReceiptVerification,Performance Management,Problem/Incident/Change Management,Project Management,Security,Business Continuity,DisasterRecovery,FinancialOperations,AssetManagement,Contract Management,13,Common ProcessesAcross Suppliers,HP,IBM,JLL,Others,ServiceRequestManagement,PerformanceManagement,Problem/Change/IncidentManagement,OtherKeyProcesses,ProjectManagement,14,ServiceRequestManagement,Purpose:Providetheabilitytomanagerequestsforsupplierservices,ACatalogofServicesincludingServiceTermsandMeasures,HistoricPerformance,BenchmarkingData,andPricing,Distinguish between EnablingServices andEnd User Services,Provideintegration of individual SupplierServices intoEnd toEnd Services,Insulation ofend users fromback office complexity,Requestprioritization,Demandforecasting,Consumption tracking,15,Performance Management,Purpose:Monitor thedelivery of service to ensure you get whatyou expected.,Track SLA compliance,Performance Dashboard,ProduceStateof theBusiness reports,Conductperformance reviews,Manageissues,16,SLAs,Measurein a quantitative way the qualityof service provided by the su