Catalyst Issue 10 | Page 25

It is well documented that a typical organisation ’ s labour spend is significantly larger through Statement of Work ( SoW ) than via more traditional categories of contingent labour ( in other words , time and materials headcount , limited company contractors and Pay As You Earn workers ). A general lack of visibility and control of SoW engagements and the associated worker population makes it difficult to manage the costs , skills and risks across your organisation .
Over the past few years , organisations have increased their focus on SoW due to a variety of factors , including recent regulations placing stricter guidelines on worker classifications . We have seen this scrutiny of SoW particularly within organisations with a mature contingent workforce solution . Organisations with Managed Service Providers in place are looking to bring SoW within the scope of their contingent labour programmes ; this is predominantly to achieve the following :
• To mitigate risk and improve compliance .
• To manage and reduce cost .
To attract the best talent and become the ‘ client of choice ’.
To gain visibility of the skills engaged to inform broader talent acquisition strategies .
• To ensure established processes are used to obtain services and resources .
• To leverage technologies that improve the hiring manager experience , speed of contracting , and deployment of SoW .
We will undertake a detailed review of your current approach to SoW management , including conducting discovery interviews with key stakeholders and users in order to produce a comprehensive report that outlines your organisational risk and provides strategic SoW programme recommendations .
We will perform a comprehensive diagnostic of your incumbent SoW population identifying true SoW services and disguised headcount , bringing visibility to who they are , what they are delivering and what they have access to . In addition , we will identify and mitigate risk through a tailored list of controls from our established SoW Controls Framework and implement a suite of reports to ensure ongoing visibility for your organisation .
SoW Disguised Headcount We will establish a robust programme to identify disguised headcount and re-align resources to the correct category and / or supply chain . This solution will reduce organisational cost through correct classification of resources , increasing visibility of time and materials contingent labour resources .
We will facilitate a front-end request process for all new SoW requirements through the creation of a dedicated SoW team . This proposition can operate on either side of the existing supplier selection process , which enables customers to continue to manage the bid process while delivering an overarching solution to effectively increase levels of control , visibility , reporting and tracking of SoW requirements and mitigation of risks .
We will institute a dedicated team to facilitate the end-to-end bid and delivery management process for new closed-market SoW requirements , focusing on the high-volume / lower-value transactions , and reducing the administration burden from the procurement function while improving the quality of supply through the competitive process and clearly defined SoW requirements . Through this proposition , we will create SoW documentation with clear milestones , track associated milestones through to completion , monitor and report on supplier performance , and facilitate the associated payments .
We will source , engage , contract and supply SoW resources against client-defined SoW requirements . Through our ability to directly source SoW resources , we will reduce the usage of third parties resulting in significant cost savings and increased visibility of the life cycle of SoW requests through tailored reporting .
We will project manage the design and implementation of the SoW module of your utilised VMS , drawing on the expertise of our expert technology consulting team to guide your design thinking .
We will deploy a team of concierge consultants accountable for supporting managers in making the right resourcing / buying decisions . By arming business managers with key knowledge and insights , these consultants will help managers feel informed and empowered to do the right thing for their business function . Managers will retain accountability for decision-making , but they will receive expert guidance throughout their requirement . This proposition will act as a coaching and education function ensuring managers better understand all of the commercial and risk implications of their hiring decisions .
If you would like to learn more , please contact us via SoW @ weareams . com

AMS In Conversation

C

Statement

of Work

Managed Solutions & Consultancy Services

Do you have sight and control of disguised headcount / resource hidden under Statement of Works ? Do you know what risks your company is exposed to ?

It is well documented that a typical organisation ’ s labour spend is significantly larger through Statement of Work ( SoW ) than via more traditional categories of contingent labour ( in other words , time and materials headcount , limited company contractors and Pay As You Earn workers ). A general lack of visibility and control of SoW engagements and the associated worker population makes it difficult to manage the costs , skills and risks across your organisation .
Over the past few years , organisations have increased their focus on SoW due to a variety of factors , including recent regulations placing stricter guidelines on worker classifications . We have seen this scrutiny of SoW particularly within organisations with a mature contingent workforce solution . Organisations with Managed Service Providers in place are looking to bring SoW within the scope of their contingent labour programmes ; this is predominantly to achieve the following :

• To mitigate risk and improve compliance .

• To manage and reduce cost .

To attract the best talent and become the ‘ client of choice ’.
To gain visibility of the skills engaged to inform broader talent acquisition strategies .

• To ensure established processes are used to obtain services and resources .

• To leverage technologies that improve the hiring manager experience , speed of contracting , and deployment of SoW .

We have designed a SoW Maturity Curve to help organisations define how mature they are in relation to the management and control of their SoW spend and populations and guide them through a journey of implementing the controls and solutions to evolve .

SoW MATURITY

LEVEL OF VISIBILITY & CONTROL

UNMANAGED
PARTIAL OWNERSHIP
SoW Risk Mitigation
CONTROLLED
SoW Administration
Concierge Support Service
SoW Strategy
MANAGED WITH CLEAR LIFECYCLE OWNERSHIP
SoW RFx
SoW Micro Work Package
OPTIMISED WITH IMPROVED DECISION- MAKING
SoW VMS Design and Implementation

We are pleased to offer seven modular SoW propositions :

1

SoW

STRATEGY

We will undertake a detailed review of your current approach to SoW management , including conducting discovery interviews with key stakeholders and users in order to produce a comprehensive report that outlines your organisational risk and provides strategic SoW programme recommendations .

2

SoW RISK MITIGATION

We will perform a comprehensive diagnostic of your incumbent SoW population identifying true SoW services and disguised headcount , bringing visibility to who they are , what they are delivering and what they have access to . In addition , we will identify and mitigate risk through a tailored list of controls from our established SoW Controls Framework and implement a suite of reports to ensure ongoing visibility for your organisation .

3

SoW Disguised Headcount We will establish a robust programme to identify disguised headcount and re-align resources to the correct category and / or supply chain . This solution will reduce organisational cost through correct classification of resources , increasing visibility of time and materials contingent labour resources .

SoW ADMINISTRATION

We will facilitate a front-end request process for all new SoW requirements through the creation of a dedicated SoW team . This proposition can operate on either side of the existing supplier selection process , which enables customers to continue to manage the bid process while delivering an overarching solution to effectively increase levels of control , visibility , reporting and tracking of SoW requirements and mitigation of risks .

4

SoW RFX FACILITATION

We will institute a dedicated team to facilitate the end-to-end bid and delivery management process for new closed-market SoW requirements , focusing on the high-volume / lower-value transactions , and reducing the administration burden from the procurement function while improving the quality of supply through the competitive process and clearly defined SoW requirements . Through this proposition , we will create SoW documentation with clear milestones , track associated milestones through to completion , monitor and report on supplier performance , and facilitate the associated payments .

5

SoW MICRO WORK PACKAGE

We will source , engage , contract and supply SoW resources against client-defined SoW requirements . Through our ability to directly source SoW resources , we will reduce the usage of third parties resulting in significant cost savings and increased visibility of the life cycle of SoW requests through tailored reporting .

6

SoW VMS DESIGN AND IMPLEMENTATION

We will project manage the design and implementation of the SoW module of your utilised VMS , drawing on the expertise of our expert technology consulting team to guide your design thinking .

7

CONCIERGE SUPPORT SERVICE

We will deploy a team of concierge consultants accountable for supporting managers in making the right resourcing / buying decisions . By arming business managers with key knowledge and insights , these consultants will help managers feel informed and empowered to do the right thing for their business function . Managers will retain accountability for decision-making , but they will receive expert guidance throughout their requirement . This proposition will act as a coaching and education function ensuring managers better understand all of the commercial and risk implications of their hiring decisions .
If you would like to learn more , please contact us via SoW @ weareams . com