Project X: Build & Deliver Phase

HR Vendor Management Governance Structure- DRAFT

June 2007
Document Purpose
 The purpose of this document is to:
– Define:
 Guiding principles for managing HR vendors
 A global governance model for managing HR vendors across all regions,
countries, business units, etc. including:
– Roles and responsibilities within the governance model
 Governance model enablers including:
– Guidelines/rules for the application of the process
– Standard global HR vendor management process
– Standard global system (SRM) support for HR vendor management
– Approved vendor list (AVL)
– Partnership with the Global Procurement function
– Identify
 High-level timeline for implementation of new process and governance
structure
 Training and implementation considerations
Contents
 HR Vendor Governance: The Problem Statement

 Building HR Vendor Governance at <client x>

– Guiding Principles
– Governance Structure
– Governance Enablers

 Implementation: High-level timeline, Milestones and Considerations

 Next Steps
The Problem Statement
 Key Findings from Assessment and Design Phase:
No Standard HR Vendor Governance Structure
Exists
Observations Implications
 No coordinated HR program to  Process inefficiencies; numerous
manage vendors and spend; lack of vendor managers creating their own
global oversight for HR vendor vendor management processes
spend/management

 Inconsistent vendor performance  Difficult to recognize high-

management (e.g., Service Level performing vendors; does not
Agreement (SLA) metrics, tracking encourage partnerships with
mechanisms) vendors

 Agreements cannot be located for a  Maverick spend that should be

number of low-spend, active channeled under approved vendors
vendors to increase purchasing power
The Result: Vendor Spend is HR’s Second Greatest
Cost
The vendor analysis conducted during the Project X Assessment and Design
Phases determined vendor spend to be HR’s second greatest cost. While
some spend reduction was achieved during FY’06 and ’07, there is still a need
to implement governance around managing HR Vendors and to continue to
look for opportunities to reduce HR vendor spend.

Global HR Costs FY 05
$35
Millions

$30

$25 $22.6M
$20

$15

$10

$5

$-

Systems Vendors Labor

The Recommendations
During the Design Phase analysis, three major recommendations were made for
addressing the HR vendor management problem. A standard HR vendor management
process has been developed, and the focus of this document is creating an HR Vendor
Management Governance Structure that will enforce global monitoring of sourced
vendors and spend, enabled by the use of strategic sourcing techniques.
Standardize HR vendor management processes (Complete)
 Formalize engagement of Procurement in the process
 Define task-level responsibilities for vendor management with HR
 Build vendor performance monitoring and consolidation activities into the process

 Enable global monitoring of sourced vendors and spend

 Leverage the new HR organizational model to enable global vendor spend oversight and defining
spend accountability
 Utilize technology (SRM) to enable visibility into the HR global vendor supply base and leverage
opportunities
 Develop corporate policies that will drive end-users toward using national contracts
 Implement regular internal reporting to identify non-compliant vendor spend

 Increase use of strategic sourcing techniques

 Forecast needs, develop approved vendor list (AVL - vendors with whom to contract and partner
for the anticipated work) and create MSAs (including global MSAs) to cover all work to be
sourced with vendors
 Dual source upcoming contracts (competitive bids)
 Develop an approval process to effectively manage demand
Building HR Vendor Governance at <client x> : Overview

 Guiding Principles
 Governance Model Overview
Guiding Principles for HR Vendor Management
 HR assesses its global vendor “portfolio” on an ongoing basis to:
– Ensure best pricing and service opportunities are leveraged
– Align vendor portfolio with HR and corporate strategic objectives
– Ensure global suppliers are leveraged where possible, but meet local requirements

 Globally, HR adheres to the same “Vendor Priority Level” guidelines for

assessing level of rigor in vendor monitoring/governance

 All HR vendor requests adhere to a standard global process

– The global process is streamlined, and not intended to create bureaucracy

 HR develops and adheres to an Approved Vendor List (AVL), which

incorporates regional/local vendor requirements

 If the process and/or AVL is by-passed, then a purchase order is not generated

 HR, Procurement, Finance and GIS operate as closely aligned strategic

partners for managing HR vendors
 Overview: HR Vendor Governance Model
The HR Vendor Governance model has structured global oversight, which is enabled by
standard global guidelines, a standard global process and system, use of an Approved
Vendor List, and partnership with the global Procurement function

GOVERNANCE STRUCTURE
ENABLERS
COE
COE
(Strategic
(Strategic Vendor
Vendor
Management)
Management)
 Standard Global Guidelines/Rules
– HR Vendor Priority Levels

 Standard Global Process

– HR-260: Manage HR Vendors

Global
Global HR HRSC
 Standard HRSC Tier
Tier 22
Standard Global
Global System
System Vendor
Vendor
Global
Global Vendor
Vendor Specialists
Specialists
–– SAP
SAP Supplier
Supplier Relationship
Relationship Management
Management (SRM)
(SRM) Manageme
Manageme (Operational
Manager
Manager (GVM)
(GVM) (Operational Vendor
Vendor
nt
nt Council
Council Management)
Management)

 HR Approved Vendor List (AVL)

 Global Procurement Function

– Contract negotiation and development expertise
Global
Global
Procurement
Procurement
Organization
Organization
Governance Structure: A Detailed View
HR Vendor Management Council
 Role: The “HR Vendor Management Council” is the central governing
body for periodic oversight and semi-annual review of global HR vendor
management strategy, policy and budget/spend. The Council also liaises
with and provides regular status reports to the VP of HR and other
executives.

 Responsibilities:
– Ensure the strategic objectives HR, procurement, and the organization as a whole
are aligned
– Set and review policies related to managing HR vendors (globally, regionally and
locally)
– Oversee (at highest level) global HR vendor spend (which is managed at the
detailed level by the Global Vendor Manager, and the COE/HRSC vendor
managers)
– Meet semi-annually for strategy, policy and budget reviews
– Provide report-out to VP of HR and other executives as necessary

 Structure:
– The Council is facilitated by the HR Solutions Center Lead
– Members of the Council include:
 Workforce Management, L&D and Total Rewards COE Leads (3 largest COEs)
 Representatives from each major region
 Representative (s) from global Procurement organization
 Finance representative (s)
 GIS representative (s)
– The Council meets semi-annually, as coordinated by the HRSC
– In the interim (with pending go-live of HRSC and COEs), the currently named
“Vendor Task Force” can act a similar capacity to the Council
HR Global Vendor Manager (GVM)
 Role: The “HR Global Vendor Manager (GVM)” oversees HR’s global
portfolio of vendors and spend. The GVM also enforces the global HR
vendor management process and guidelines. The GVM is a subject
matter expert in vendor portfolio management, contract analysis and
vendor consolidation (specifically within HR) and has global and cross-
functional vendor management capabilities.

 Responsibilities:
– Manage HR’s global portfolio of vendors and vendor spend, partnering with
Procurement, Finance and GIS to identify and drive better pricing, service and
efficiency globally (where possible), regionally, and/or cross-functionally
– Partner with the COE (strategic) and HRSC (operational) vendor managers to
develop, maintain and enforce HR’s Approved Vendor List (AVL)
– Oversee and enforce adherence to “HR-260: Manage HR Vendors” process by
partnering with and providing guidance to the COE (strategic vendor
management) and HRSC (operational vendor management)
– Provide regular reports to HR Vendor Management Council as necessary

 Structure:
– The GVM is an HRSC Operational Team Lead role and reports directly to the
HRSC Lead
– The GVM receives direction and guidance from the HR Vendor Management
Council (as relevant)
– The GVM acts in a partnership and advisory capacity to the Strategic (COE)
and Operational (HRSC) vendor managers
– <client x> may also consider utilizing an outsourced vendor to act in the role of
GVM (i.e., utilize a vendor to manage other vendors)
COE (Strategic Vendor Management)
 Role: The COEs are responsible for strategic vendor management and
are the functional subject matter experts for vendor sourcing, selection
and monitoring.

 Responsibilities:
– Develop sourcing strategies
– Manage strategic relationships with vendors (acting as single points of contact
for high-risk/high-dollar vendors)
– Own the vendor selection process (in conjunction w/ Procurement)
– Define vendor performance metrics/KPIs and vendor performance
review/monitoring frequency
– Partner with the Global Vendor Manager to monitor regional and global vendor
spend within and across functions
– Adhere to tasks as defined in the COE “swim lane” of HR-260: Manage HR
Vendors

 Structure:
– Strategic vendor management capabilities exist in all roles within the COE,
although COE Program Leads and Consultants will likely have the most strategic
vendor management responsibilities
– Each COE will have varying levels of vendor management responsibilities, based
on the frequency of vendor utilization and the number and types of vendors
managed by each COE
– The COEs partner closely with HRSC Tier 2 (operational) vendor managers as
well as Procurement (contract/negotiations experts)
– The COEs utilize the expertise of the GVM (Global Vendor Manager) as advisors
and vendor management subject matter experts
HRSC Tier 2 (Operational Vendor Management)
 Role: The Tier 2 HRSC’s are responsible for operational vendor
management and are the day-to-day administrators of HR vendor-
related activity including support for vendor sourcing, monitoring and
issue resolution.

 Responsibilities:
– Manage day-to-day vendor relationships and submit HR data to vendors via
appropriate interfaces
– Support the vendor selection and contract renewal processes
– Support the COE in monitoring of vendor performance, managing vendor
Service Level Agreements (SLAs) and measuring vendors against metrics
defined by the COE
– Perform industry/BKM benchmarking as required
– Assist the COE and GVM in identifying vendor consolidation opportunities
– Adhere to tasks as defined in the HRSC “swim lane” of HR-260: Manage HR
Vendors

 Structure:
– Operational vendor management responsibilities are part of the the Tier 2
Operational Specialist’s role
– HRSC Tier 2 Operations Specialists partner directly with the COEs (strategic
vendor management) as well as Procurement (contract/negotiations experts)
– HRSC Tier 2 Operations Specialists utilize the expertise of the COE and the
GVM (Global Vendor Manager) as advisors and subject matter experts
Governance Enablers: A Detailed View
 Global Standard Vendor Guidelines/Rules:
HR Vendor Priority Levels
 The HR Vendor Priority Level Guidelines define the rules for:
– Flexibility in the application of the HR-260 process
– Level and rigor of governance/monitoring that must be <client x> to each type of vendor
based on risk imposed by that vendor
 The vendor priority levels (1,2 & 3) and corresponding guidelines are defined based
on level of risk imposed by a particular vendor including:
– Data security/privacy
– Annual spend
– Breadth of services
– Systems access
– Risk monitoring capability
 A vendor does not have to meet all defined criteria to fit into a Level (i.e., a lower
risk vendor may still be defined as a “Level 1 Strategic Partner” based on other
factors)
– Vendor managers in HR should use these guidelines for direction, but realize there is an
element of interpretation involved
 The Global Vendor Manager (GVM) owns the enforcement of the Vendor Priority
Level Guidelines

 Standard Global Guidelines/Rules

 HR Vendor Priority Levels
Each vendor level has specific governance requirements; High risk, strategic
vendors are more closely monitored than lower risk, less strategic vendors
Level Description
Level 1:  Generally global or multi-regional strategic partnerships that can
Strategic be multi-process in scope
Partners  Scope of services tightly linked to organization’s general business
strategy
 Scope of services present the most significant operational
business risk (see definitions of potential risks)
 RFI/RFQ/RFPs are generally required
 Annual spend generally >$150,000*, but is possible for annual
spend to vary outside of this range
Level 2:  Generally fulfill emerging/distinct need
Niche Players  Can be global or regional
 Can be single or multi-process in scope
 Scope of services present a moderate to high level of
operational business risk (see definitions of risks)
 Annual spend generally $50,000-150,000*, but is possible for
annual spend to vary outside of this range
Level 3:  Supports an immediate unique need (generally to fulfill unique
One-Offs local requirements)
 Used opportunistically
 Generally regional and single process in scope
 Should generally move to higher level or potentially be rationalized Vendor site visits not required
as a candidate for future elimination/consolidation
 Scope of services do not present a high level of operational
business risk (see definitions of risks)
 Annual spend generally < $50,000*, but is possible for annual
spend to vary outside of this range
*Represented in US Dollars
Governance Requirements
 Highest degree of relationship governance required
 All steps in HR-260: Managing HR Vendors Process generally must be
followed
 SLA (Service Level Agreement) and performance metrics must be in
place
 Vendor references must be conducted and documented
 Formal escalation process must be in place
 Vendor site visits generally required
 Single point of contact in HR required
 Performance measured quarterly utilizing vendor scorecard
 Moderate to high degree of relationship governance required
 HR-260: Managing HR Vendors Process should be followed, but some
steps may not be applicable and can be skipped
 SLA and performance metrics may be in place
 Vendor references conducted and documented as necessary
 Formal escalation process in place as needed
 Vendor site visits not required
 Single point of contact in HR generally required
 Performance measured semi-annually utilizing vendor scorecard
 Low to moderate degree of relationship governance required
 HR-260: Managing HR Vendors Process should be followed, but
several steps may not be applicable and can be skipped
 SLA and performance metrics may be in place (as needed)
 Performance measured annually or on as-needed basis, generally
without use of vendor scorecard
HR Vendor Priority Levels: Defining Operational Business
Risk Factors imposed by an HR Vendor
To properly apply the Priority Level guidelines, it is important that we further define
operation business risk factors. This will help clarify which level (1,2,3) a vendor
falls into. Each risk factor should be assessed both individually and holistically to
determine level of governance that is required for a vendor.
Risk Factor Definition
Data security/privacy  Level of access to private data such as: employee personal data, corporate
proprietary data, and/or other types of protected data
 Access is either directly by vendor or by any third-parties/sub-contractors
representing vendor
Annual spend  Amount of administrative and/or delivery fees paid to a vendor annually (also
consider price per employee or per unit)
 Total amount of cash flow involved w/ the vendor
 Spend amounts will vary (especially by region) and should be assessed in
conjunction with all other risk factors
 Spend levels are represented in US Dollars
Breadth of services  Number of HR customers served by vendor
 Number of locations (regions, countries, business units, etc.) served by vendor
 Level to which vendor sub-contracts to other third parties
Systems access  Level of access to any <client x> internal systems

Risk monitoring capability  Level and type of risk monitoring/controls in place by vendor
 Structure and type of risk monitoring in place to regulate sub-contractors of
vendor
 Global Standard Process
HR-260: Manage HR Vendors

 HR-260:
– Maps the entire lifecycle of managing an HR vendor, from sourcing to contract renewal
– Defines each task-level responsibility for HR vendor management within the COE
(strategic vendor management) and HRSC (operational vendor management)

 The following five sub-processes define the global standard process for managing
HR vendors
– HR-260-010: Define Sourcing Strategy and Select Vendor
– HR-260-020: Process Purchase Requisition and Purchase Order
– HR-260-030: Monitor Vendor Performance
– HR-260-040: Perform Vendor Billing and Reconciliation
– HR-260-050: Administer Vendor Contract Expiration

 The Global Vendor Manager (GVM) owns the enforcement of HR-260 globally

 Standard Global Guidelines/Rules

 HR-260-010: Define Sourcing Strategy and Select
Vendor
Process: Human Resources
Sub-Process: HR-260 Manage HR Vendors
Activity Map: HR-260-010 Define Sourcing Strategy and Select Vendor
HR-260-010 is linked to Business Transformation ARIS process P 010 and P040
Employee Manager

Process Purchase
Requisition (HR- END
260-020)
Yes
HRSC

Develop sourcing Review vendor Agree with vendor

plan and analyze responses against on contract (in
sourcing defined criteria collaboration with
opportunities(with
(supported by Legal and
Procurement)
Procurement) Procurement)

START Provide input on Host Bidders’

Use active vendor list, Conference to
COE

Identify / define Define user Define business terms

requirements and vendor? (active No selection criteria address vendor and performance
business need contract) and selection questions(if
sourcing strategy Select vendor metrics (Procurement
requiring use of with stakeholders panel applicable) provides contract
vendor (incl. Procurement) expertise)
HRBP

Identify
potential
business need

Procurement: Procurement: Procurement: finalize

obtain NDA from communicate negotiations
Third Party

vendors if requirements to Legal & Procurement:

Finance: confirm disclosing vendors (RFI, sign-off on contract
budget protected data RFP, RFQ) and T&Cs

END
 HR-260-020: Process Purchase Requisition and
Purchase Order
Process: Human Resources
Sub-Process: HR-260 Manage HR Vendors
Activity Map: HR-260-020 Process Purchase Requisition (PR) and Purchase Order (PO)

HR-260-020 is linked to Business Transformation ARIS process P070 and P080A

Employee
Manager

Yes

Agree on SOW, Agree on

HRSC

Quote or Other performance

Obtain Request
Pricing with metrics with Complete PR Monitor PO
START notification of additional
vendor (if adding vendor (if not and attach SOW funds
work under received funds funds?
defined in
existing contract) contract)

No
COE

END
HRBP

Procurement:
Appropriate
process PR;
Third Party

END No approvals Yes

submit PO # to
obtained?
vendor and HRSC

Accounts
Payable / vendor:
set-up vendor in
system (AP Online
or other)
 HR-260-030: Monitor Vendor Performance
Process: Human Resources
Sub-Process: HR-260 Manage HR Vendors
Activity Map: HR-260-030 Monitor Vendor Performance
HR-260-030 is linked to Business Transformation ARIS process P090
Manager Employee

Interact regularly with Consolidate vendor Communicate

vendor to enforce performance materials results with
(e .g., service level
SOW / SLA reports, contract
Yes vendor
HRSC

(operations compliance, summary of (supported by

management) activity, scorecardds) Procurement)

Assess vendors
Performance
against defined
satisfactory?
quality measures

No

Agree on
Perform monitoring of Sourcing Define sourcing
corrective action
COE

vendor (partner w/ arrangement strategy and select

plan with vendor meeting business
No
HRSC) vendor (HR-260-010)
(supported by needs?
Procurement)
HRBP

Yes
END
Third Party

START

Vendor: provide
services / materials
and reports according
to SOW
 HR-260-040: Vendor Billing and Reconciliation
Process: Human Resources
Sub-Process: HR-260 Manage HR Vendors
Activity Map: HR-260-040 Vendor Billing and Reconciliation

HR-260-040 is linked to Business Transformation ARIS process P120

Employee
Manager

Resolve with
No (first resolution point)
vendor
HRSC

Reconcile Reconcile work

invoiced rates Accurate? Yes completed Approved?
against PO against invoice

Resolve with Yes

COE

vendor; provide
No (escalated) No
support to
HRSC
HRBP
Third Party

Finance:
Vendor: post
process Finance: record
invoice through
START request; submit billing and END
system (AP
payment to payment
Online or other)
vendor
 HR-260-050: Contract Expiration
Process: Human Resources
Sub-Process: HR-260 Manage HR Vendors
Activity Map: HR-260-050 Contract Expiration
HR-260-050 is linked to Business Transformation ARIS process P050A
Employee
Manager

No

Redefine
requirements (w/
As-is renewal? COE); partner with
Yes
Gather vendor Procurement and
Develop sourcing
Legal to finalize
documentation
HRSC

plan and analyze

contract
(performance, sourcing
compliance, opportunities(with
benchmarks, etc.) Procurement)

Yes Process
Purchase
Requisition(HR-
260-020)

Determine Re-assess user Define Sourcing

COE

timeframe needed requirements Maintain same Strategy and

START to strategize for and sourcing No
vendor? Select Vendor
upcoming contract strategy (incl. (HR-260-010)
expiration Procurement)
HRBP
Third Party

GIMO: update
contract data; END
process PR
HR-260: Task-Level Definition
 HR-260 was documented at the task-level to define:
– All tasks-level responsibilities for HR Vendor Management within the
COE and HRSC
– Local and functional extensions to the global process
– All data sources, supporting documents, data destinations, approval
requirements required in each sub-process activity
– Sub-process KPIs (where applicable)

 The task-level processes are documented in a standard Excel

template and can be viewed.
 Global Supporting System:
SAP Supplier Relationship Management (SRM)

 <client x>’s Business Transformation is focused on implementing SAP as

the single platform to streamline business processes
 Supplier Relationship Management (SRM) will be the SAP platform for
managing the procurement of indirect materials
 SRM will:
– Eliminate manual processes for processing requests for indirect materials,
including HR outsourced service providers
– Standardize and centralize sourcing and contracting processes within Global
Indirect Materials Organization (GIMO)
– Greatly simplify and streamline procurement of indirect goods and services
 SRM recently began its phased global rollout
– Will be rolled out to HR in Location X during July ’07
– Estimated roll-out to all of HR globally by March ’08 (approximate timeline
provided by BT SRM team)
 The BT SRM Team, and ultimately the global Procurement function own this
application
 Standard Global Guidelines/Rules
 SAP SRM Proposed Timeline*
*
Timeline Provided by BT SRM Team- June 2007

Business Transformation is rolling out SRM in phases. HR is scheduled for July ’07
go-live of SRM. Global HR is scheduled for a March ’08 go-live of SRM. The BT
team owns the SRM training efforts and will align end-user training with the go-live
schedule.

Oct ‘06 Nov ‘06 Dec ‘06 Jan ‘07 Feb ‘07 Mar ‘07 Apr ‘07 May ‘07 Jun ‘07 July ‘07 Aug ‘07 Sept ‘07 Oct ‘07 Mar’08

Release 1 Release 2
EBP/CCM/BW LACWPS/BE/Contracts
Functionality Functionality
SRM-MEA Functionality Global HR
Rollout
Design Release 1-Build/Test Release 2-Build/Test
Location XHR
SRM-MEA User Rollout Rollout ONLY
Rollout Rollout Rollout
Pilot Global Assessment & Roll-out
Group 1 Group 2 Group 3
SRM-MEA Catalog Rollout
Pilot Phase I Phase II Phase III Phase IV

ECC6.0 Upgrade for Finance

Scope and Plan Design Build Test Deliver
SAP SRM Rollout Schedule*
*
Schedule Provided by BT SRM Team- June 2007

Location XHR
Rollout ONLY

Global HR
Rollout
 HR Approved Vendor List (AVL)
Establishing an Approved Vendor List (AVL) allows <client x> to leverage its HR vendor spend. It also provides incentives for vendors, which should defined by
HR (in conjunction with Procurement) and be articulated to potential preferred vendors.

Description Key Considerations

• An Approved Vendor List consists of vendors Benefits to <client x>
that the <client x> HR organization has
 Leverages HR spend within the organization
selected as its primary providers of external
(globally, regionally, cross functionally, etc.) and
HR service
allows <client x> to receive the “best” market rates
 Approved Vendors are selected because of by directing volume to approved vendor (s)
their “fit” with the organization, breadth/depth
 Ensures high quality by using vendors with strong
of services, functional capabilities, resource
historical performance/buyer satisfaction
availability/quality (as relevant) and ability to
offer competitive pricing to <client x>  Eliminates need to renegotiate terms/conditions of
 The Approved List should be revisited and the MSA on a project by project basis
updated annually (or more frequently, as
necessary) by the Global Vendor Manager Sample Preferred Vendor Incentives
 The Global Vendor Manager (GVM) owns  100% of HR Spend goes to vendors on the AVL
the Approved Vendor List  Minimizes need for the vendors to negotiate
terms/conditions of MSA on a project by project
basis
 Standard Global Guidelines/Rules
 Minimizes time/investment requirements for a full-
blown RFP response by a vendor
– HR Vendor Priority Levels
 Leveraging the Global Procurement Function

As part of the Business Transformation, the Procurement function at <client x> will
become a globally centralized organization; To enable the proposed governance
structure, HR and Procurement must have a tightly aligned partnership going forward,
allowing HR to leverage the global capabilities and expertise of the Procurement function
Procurement is ultimately responsible for all final vendor negotiations, defining terms &
conditions contract completion and defining terms & conditions. Global Procurement
responsibilities include:
- Providing sourcing and contract expertise (process, templates, best known methods, etc.)
- Collaborate with the COE to define the sourcing strategy and partner with the COE/HRSC in the selection and
contracting of all HR vendors (bringing process, policy, and standardized contract terms and conditions)
- Own the Purchase Requisition (PR) to Purchase Order (PO) process
Global
Procurement

The HRSC is responsible for ensuring

The COE sets strategic objectives
Vendor that the vendor provides contracted
Management services and coordinates vendor
for the relationship between the Governance

C
operational vendor managers activity to meet operational and
Structure
CO

(HRSC) and the vendor. S project needs on a daily basis.

HR
E

 Standard Global Guidelines/Rules

– HR Vendor Priority Levels
Implementing the Governance Model

 High-Level Implementation
Timeline
 Change, Training and
Communication Considerations
 High-Level Implementation Timeline
May 1 – Jul 31
Q3 ‘07
Finalize vendor governance
structure and process and
obtain proper approvals
Develop detailed
implementation plan for
governance structure and
process
SRM Go-Live for Location
XHR (July)
Begin development of
preliminary AVL (Approved
Key Milestones
Vendor List)
Begin preliminary roll-out of
Vendor Priority Level
Guidelines
Collect standard templates
(from Procurement) for
RFPs/RFIs/RFQs/
SOWs/SLAs/NDAs/Evaluati
on Matrices
GVM position posted and
hired
Cross-process lead
knowledge sharing of
Vendor Management
process and future-state
governance structure
Timeline
Aug 1 – Oct 31 Nov 1 – Jan 31 Feb 1 – Apr 30 May 1 – Jul 31
Q4 ‘07 Q1 ‘08 Q2 ‘08 Q3 ‘08
VM process live for VM process live for VM process live for EE VM Process live for
L&D, Immigration, Separation, Data Mgmt, Performance Benefits, Recruitment and
Expat & Stock and Relocation, People Mgmt, EE & Labor Succession Planning and
related HRSC Tier 2’s Movement and Relations, Diversity & related HRSC Tier 2’s
hired Compensation and Compliance and related hired
related HRSC Tier 2’s HRSC Tier 2’s hired
Training/”How-to- hired Vendor Governance
guides”/Procedural
Council Members
guides developed GVM fully responsible SRM go-live for HR in all confirmed/changed as
for HR vendor portfolio regions (estimated) necessary; second semi-
Vendor Priority-Level and management of annual meeting held
Guidelines rolled-out ongoing vendor Governance structure
globally portfolio optimization operational for launched Governance structure
processes fully operational globally
AVL finalized and Vendor Governance
rolled-out globally Council Members
confirmed/changed as
Vendor Governance necessary; kick-off
Council Members meeting held (first
named (transitional) semi-annual meeting)
Project X VM lead Governance structure
shares responsibilities operational for
with GVM until GVM is launched processes
fully up to speed
Update any relevant
global policies as
necessary
Governance structure
operational for
launched processes
Training & Communication: Key Considerations
 Training for HR:
– New HR-260 process “How-to” guides and procedural manuals
– New Vendor Priority Level guideline and AVL training
– Purchasing/negotiation competency training
– How to create RFPs/RFIs/RFQs and hosting bidders conferences
– Operational and strategic vendor management competencies as necessary
– How to evaluate “total cost of ownership” for vendors
– How to “think globally” when sourcing vendors

 Training for Procurement, Finance and Managers:

– How to evaluate “total cost of ownership” (to understand benefits of a vendor
outside of price/unit)
– Calculating global rebates at the local level
– General knowledge sharing on benefits of HR vendor management
Next Steps
 Develop and execute detailed implementation plan
– Validate high-level timeline provided in this document as starting point
– Align with go-live of processes as necessary
– Address implementation considerations

 Develop and deliver training for vendor management

 Create job descriptions, staff vendor management roles and form HR Vendor Management
Council
Appendix
 Build & Deliver Phase HR-260 Design Team
A cross-functional global team was engaged to design the global standard
process: HR-260 Managing HR Vendors; The team also provided input
into HR vendor governance requirements
HR Vendor Management Team Members
<name>, Vendor Management Team Lead, US-Benefits
<name>, GIMO (Global Indirect Materials Organization/Procurement)

<name>,
<name>,
<name>,
<name>, Finance
<name>, Project Lead
<name>, GIMO/Procurement
<name>,

<name>,
<name>,
HRBP Model Component Charter
Purpose:
HR Business Partners
 Partner with business unit executive and manager customers to translate business
strategies into HR priorities
 Ensure HR operational excellence in the execution of business priorities and HR strategy
 Balance business objectives relative to core values, balancing and representing
stakeholder perspectives

(Executives and Managers)

Role Description:
 Provide strategic consulting and advice to executives and line managers on organization
management aspects of the business
 Utilize change management capabilities to promote positive business behaviors and to
foster a culture that aligns with core values

Customers
 Work with customers to identify, develop, and refine solutions
 Drive solutions and leverage products and services in collaboration with the COE’s to
deliver effective HR solutions (challenging as necessary)
 Work in partnership with the COE, HRSC, and the Business Unit to ensure HR services are
delivered efficiently and effectively

Focus Areas:
 Coaching for executives, organizational effectiveness, organizational development;
support to leadership teams
 Coaching management around business implications of people management, movement
and rewards, as well as their own development
 Strategic recruitment, workforce planning and succession planning interventions
 Partner with the COE and HRSC to perform business analysis and deliver performance
improvement solutions as the primary accountable entity to the line client
 Integrate learning solutions and evaluation
 Escalated employee relations cases
 Employee communications advisory
 HR Business Partner Work Activities
ADVISORY-Related Activities
HR Strategy & Programs
• Provide input into company-wide HR strategy,
programs, policies, communications and branding
• Develop and drive HR strategy and programs
specific to business unit (in conjunction with
knowledge of business)
Change Leadership
• Provide change management support to business
units, including:
• Culture
• Management style
• Risk taking and incentives
• Communication
• Valued change initiatives
HR Financial Measurement/HR Analytics
• Analyze HR data and communicate appropriately to
executives and line managers
• Identify action items based on analysis and define
metrics that are aligned with action items
• Work with business units to identify profit-impacting
HR initiatives
Organization and People Effectiveness
• Work with managers to identify changing business
requirements for HR programs such as workforce
planning, employee productivity improvement,
talent management, incentive-rewards design, and
other HR programs
• Act as the liaison between employees/business
units and COE to represent their requirements for
company-wide program design
• Assist with the implementation and integration of
programs, processes, and initiatives that maximize
people effectiveness
• Tailor company-wide programs and processes to
meet the unique needs of various business units
• Organizational development and evaluation of
success
 COE Model Component Charter Overview
COEs
Performance Workforce Employee Learning and
Total Rewards Communication
Management Management Relations Development

 Regulatory
Communications Performance Recruitment Labor and Learning Strategy
compliance & branding and Management  Sourcing Strategies Employee & Solutions
reporting design  Career Relations Development
 External Recruitment
Development  Recruitment High-risk  Learning
 Program governance Strategy
(401K, IPOC & Templates and Effectiveness Reviews investigation Technology
Appeals committees forms branding and  Employer Brand management,
etc.) design as escalated Executive
Management
Development
 HR & Compensation
Committee Corporate Workforce Planning
(recommendations, Communications Management
requests, analysis) alignment People Movement Development
 Talent Mobility
Compensation Employee survey Program Employee
 Market
management  M&A and Divestitures Development
intelligence &
supporting tools
 Job Evaluations Organization
Employee feedback Employee Separations
Development
Stock Programs mechanisms &
integration Immigration, Relocation, & Change
Benefits approach Expatriate Services Management
 Savings, health
& welfare, Diversity
retirement & Succession
wellness Planning
programs Compliance

The role of each COE includes:
Program Strategy, Planning & Governance
Plan, Policy and Process Design
Compliance & Reporting
Program-specific communications
& training content
M&A Integration Activities (including divestitures)
Process-specific data requirements and Metrics
Strategic Vendor Management
Program-related tool selection and management
 COE Work Activities
PROGRAM-Related Activities

HR Strategy & Programs HR Financial Measurement/Analytics

• Develop HR strategy, programs, policies and supporting tools
• Develop communications and training content
• Define HR budgets, related to programs
• Manage and own compliance
• Establish, monitor, and analyze program data/metrics (liaise
with HRSC to gather data and metrics)
• Provide change management support, related to the
successful adoption of programs
Change Leadership
• Assist with the design of an agile organizational infrastructure
• Ensure communications strategy effectively conveys agility,
culture, learning, innovation, and other defined components
• Define HR metrics that are tied to financial performance
• Analyze HR budget and create business cases for HR
programs
• Project future human capital resource requirements
• Assist with other calculations and financial activities relating
to HR programs, processes, and initiatives
Organization and People Effectiveness
• Market HR programs so they meet cost targets and are
utilized by employees

Vendor Management
• Develop sourcing strategy
• Own strategic relationships with vendors
• Oversee/own the vendor selection process (in conjunction w/
GIMO)
• Define performance metrics / Key Performance Indicators and
monitoring frequency to review vendor performance
• Monitor regional and global vendor spend
The HRSC Is Proposed To Have A Tiered Structure With Two Primary
Sub-Organizations: 1. HR Operations & Technology Center and 2. HR
Resource Center

Centers of HR Business Other Internal Partners:

Tier 3 Expertise Partners e.g. Legal, Finance

HR SOLUTIONS CENTER
HR Operations and Technology Center

HR Operations HR Technology (GIS)

Total Rewards
Employee Outsourced
Relations Report Technology
Strategy Vendors
Tier 2 Communication
Performance
Solutions
Management Metrics Data Integrity
solutions
Vendor Learning &
Management Development
Analytics Technical
Workforce HR Data Support Solutions
Management Maintenance

HR Resource Center
Employees
• Operations & Logistics Managers
• Transactions & Data
• Training administration
Tier 1 Intake via Phone,
• KM Updates
Executives
Web, Mail, Fax, Admins
• Actively redirect to Tier 0
Contingent Workers
• HR and Manager ESS/MSS Former Employees
HR Portal • Outsource vendor Web sites
Tier 0 • Policies, procedures, personal data,
Vendors
HR website) GHR

The interactions within the tiered HR structure are enabled by

common global data bases and systems (e.g., SAP, Remedy, Altrua)
 Overview of the HR Solutions Center
 The HR Solutions Center will comprise:
– HR Operations & Technology Center (Tier 2):
– HR Operations Center: Managing HR administration for all process areas and
includes a vendor management and communications team
– HR Technology Center: Responsible for planning, designing and implementing
self-service capabilities, automated functional requirements and metrics
reporting capabilities. This organization is in the GIS organization, with dotted
line responsibility to the HRSC Leader.
– HR Resource Center (Tiers 0 and 1):
– Tier 1: Intake and manage employee and manager HR inquiries, conduct HR
administration activities related to knowledge management update, logistic
support, etc.
– HR Portal (Tier 0): Web interface with 24/7 ESS and MSS capabilities, links with
external vendor websites
 HR Solutions Center process scope includes:
– Total Rewards
– Data & Records Management
– Performance Management
– Workforce Management
– Employee Relations
– Learning & Development
– Communications
– Vendor Management
 Overview of the Model Component Resolution Process
REFERRAL of an open
issue occurs when a
 Forecasting  Special studies functional or technical

COE/HRBP/
 Policy/program  Critical incident specialist in Tier 2 passes

TIER 3- HRBP/COE/Other
Consultant Advisory
Other
ownership of the issue to
design support
 Higher-risk ER cases
Tier 3 for resolution due to
the need for a higher
decision making level of
resolution.

TIER 2- HR Operations &
Technology Specialist
Support
 Interpretation and  Advice and counsel
problem solving
 Specialist support for
 Program delivery technology
 HR function dailies  Specialist support for
HR functions
TRANSFER of an open
issue occurs when a
functional or technical
specialist in Tier 2 passes
ownership of the issue to
another specialist within
the Tier 2 structure based
on the type of specialist
knowledge required to
resolve the issue.

 Predefined answers
TIER 1- HR Resource
 Basic to complex inquiries
Center Generalist
Assistance  Full range of People
Care Support
TIER 0-  Predefined answers
Self-service Capability  Basic to complex inquiries
HRSC
 Transaction processing
 Information Management
ESCALATION of an open
issue occurs when Tier 1
passes ownership of the
issue onto Tier 2 for
 Transaction processing resolution due to the need
 Information Management for more specialized
support.