Improving Visibility on Contract Performance and Delivery
Client: A Global CPG Company
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 routine delivery. While the supplier was delivering these services, parts of the HR function and the business were unhappy with the delivery and the spending. 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.
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.
Action
An analysis of the contract and delivery of the services revealed the following :
- Weak or No Governance across Geographies
- Limited Knowledge of the contract
- Lack of or Limited Ownership of the contract in several Geographies
- These caused delays in decisions and perceived high spending 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
Results
Value was delivered by
- Improved KPIs (by about 25%) and Performance
- Complete understanding of the contracted services and the reduced spending (by 10%)
- Improved reputation, relationships, confidence, and value delivered across the business
Pains relieved included;
- The poor reputation of procurement/HR Services contracts in the business
- Poor business alignment and engagement
Over some time, these led to the following;
- Enhanced reputation through increased relevance, alignment, and impact with colleagues and suppliers
- The team was able to make more informed decisions quickly, objectively, and transparently