Steve Tolen and I set the scene with the feedback from the Group as to why we were getting Procurement Professionals together on this subject:
- 81% have visibility control issues with SOW
- 75% intend to do something with SOW this year
Well, frankly, we did know this would be the case just by the discussions and the level of interest we have had toward the end of 2017! So, as you can see – we do listen!!
Brian Hoffmeyer updated us on the estimated SOW market spend: $4.6 Trillion AUD globally – that is a lot of bottle tops – but I am sure that did not surprise you too much. As we mentioned, this area is 3 to 6 times your contingent spend and is typically unmanaged. Your MSP can help you here where they have the expertise or certainly manage parts of the process. As we stated, Staffing Industry Analysts have suggested the MSP involvement has increased 75% since 2012.
Brian had his Letterman Top 10 on show again and shared some relevant client examples along the way. Remember that it is S.O.W or Statement of Work, not the female pig….
There were definitely a couple of areas of the Top 10 that resonated in the room!
Item #5 in Brian’s list was “Rinse (and refine) and Repeat.” So it’s important not only to have your Stakeholders on-board to help “drive the stake” but also to know when to call in reinforcements. Make sure the needs are met, then refine and repeat.
Item #4: “Be prepared to find some ‘ugliness.'” Our clients always find a little bit of ugly! Mostly where the contingent spend is hiding as SOW and bad behaviours are fostered when there is no “Single Source of Truth” and no VISIBILITY. Sounding familiar?
But the #1 way to “Tame the SOW Beast” – Capture all workers and vendors so there is less risk of misclassification – would be the ultimate, and many of our clients are working their way to this in phases, whilst a few clients have chosen to take the ‘Big Bang’ approach.
On the day, we heard from Dennis Dragatogiannis regarding his experience in this space as “the guy who is not loved” as he takes the organisation on a journey and goes through a significant change management process to get ALL labour under management! Dennis also reinforced the need for executive sponsorship in order to support and reinforce the change.
When asked about supplier funding, all the panelists agreed that it is achievable and that the involvement of the suppliers and understanding of their benefits will make this more palatable. I hope that this gave everyone the confidence to begin somewhere to get the “ugliness under control!”