Building the Business Case for a Dedicated Sourcing Function

Presenter Search/Research Services Search/Research Success by ExecuQuest learning workshop Performance Coaching Advisory Services to companies that wish to build or optimize an internal sourcing function. Prior to joining ExecuQuest, Marc served as the SVP, Sourcing Solutions Director, for Wachovia. He built and led a team of geographically dispersed research and sourcing professionals that grew from 6 to 55 over a six-year period. He is a member of the International Association for Corporate & Professional Recruitment, the International Coach Federation, and he served on the Board of Directors for the American Cancer Society, and the Regional HIV/AIDS Consortium and has served on the National Advisory Board for the Human Capital Institute. Marc Hutto is Managing Principal, ExecuQuest, LLC. His previous fifteen years with Wachovia Corporation in conducting and leading recruiting, research and sourcing brings an execution-focus to ExecuQuest in the delivery of – 2

Our Time Today… 15 Minutes today 60 Minutes in March Drill-Down Session Please note your questions for today (slide number or topic) Some topics/questions will need to conveyed into the March Drill-Down Session via teleconference 3

Seven-Step Process Overview 1) Identify your funding environment 2) Determine the model to be proposed (centralized, decentralized, or hybrid) 3) Define and document objectives for creating a sourcing function (what are you trying to solve?) 4) Define and document how success will be measured (aligned to objectives for creating it) 5) Illustrate how the model will operate 6) Execute! 7) Measure and report successes and address issues 4

1. Identify Your Funding Environment Funding: Centralized Budget, Line of Business Funding, Fee-for-Service Centralized Budget Success is Evaluated by: Budget performance (goal vs. actual) Sourcing/Hiring Results in alignment with enterprise or business unit(s) supported Line of Business Funding Success is Evaluated by: Results in alignment with enterprise or business unit(s) supported Success in a Fee-for-Service Framework is Evaluated by: Revenue – Goal vs. Actual Results in alignment with enterprise or business unit(s) supported 5

2. Determine the Model to be Proposed Centralized Characteristics – Efficiency & Effectiveness StandardizationAdministration of Resources Common Reporting & MetricsBudget control – enterprise Authority vs. InfluenceTraining Deployment Planning & ExecutionRole Purity (individuals and mgmt) Coaching & ExecutionRapid propagation of learning Role vs. Non RoleBuying power - vendors Stronger complianceSingular accountability Reporting – enterprise viewOthers? 6

2. Determine the Model to be Proposed Decentralized Characteristics – Customization & Control CustomizationTimely response Fewer broad policiesHigher level of support for roles Deployment of personnelBudget control – business unit Rapid attainment of expertiseRole diversity Accountability to the business unitPart of the team Others? 7

2. Determine the Model to be Proposed Hybrid Model Characteristics – Best of Both Worlds Central Control/AccountabilityAligned by team/business unit Authority vs. InfluenceHigher level of support for roles Role vs. Non RoleBudget control – enterprise Rapid attainment of expertiseReporting – enterprise view Accountability to the business unitPart of the team Buying power - vendorsRapid propagation of learning Others? 8

Define Success at TWO levels: Enterprise AND Line of Business Clarity on Pass/Fail (Measurable) Criteria Prioritize and then DEFINE Cost Diversity Speed Quality Quantity 9

At what point do expenses become a concern? A. Determine current expenses (amounts and sources) and agree upon goals. B. Assess goals against current budget or funding sources (Fee-for-Service, Line of Business) C. How will variances be measured? Each line item Overall (one number) Defining Success: COST 10

Which identity groups are underrepresented? A. Gather available data for each identity group B. Determine enterprise and line of business goals/objectives C. Assess: Commitment Competence Defining Success: DIVERSITY 11

Which one(s) will be the measure? A. Time to a list of identified prospects? B. Time to resume/CV? C. Time to interview? D. Time to hire? E. Time to start? Defining Success: SPEED 12

How will we determine this? A. Candidates match to criteria weve established? B. Location of prospects? C. Retention? D. Performance of the new hire? E. Surveys (managers impression)? Defining Success: QUALITY 13

Too many or too few (each vacancy or pipeline)? A. What is the right number of prospects (names)? B. What is the right number of resumes/CVs? C. What is the right number of interviews? Defining Success: QUANTITY 14

Remember the Interrelationships! Is achieving our Diversity goal possible with the desired Speed? Is the Hiring Manager prepared for potential Costs associated with the desired Quality? Can the Speed be achieved if the desired Quantity is too high? Will the organization accept higher Costs for improved Speed? Etc, Etc, Etc… 15

Measuring Success Defined and Documented Objectives Cost Diversity Speed Quality Quantity Options for Reporting Outcomes Hiring Cost Per Source Cost Savings Analysis Hires – EEO Data Inferred by Source Supply Chain View (Identify, Present, Interview, Offer, Hire, Start) Submittal-to-Hire Ratio Identified or Submittals 16

Building the Business Case – TEMPLATE An 8-page, How-To Guide on Content, Strategy, and Compelling Arguments Executive Summary How to outline the benefits of the change proposed Articulating the business case Outlining resource needs and those involved Illustrating linkage to enterprise objectives Conveying current and future-state environment Change-Readiness planning Risk assessment and mitigating strategies Financial Pro Forma and Staffing Model templates Demonstrating Return on Investment (ROI) Drill Down Session 17