External Vendors, legal issues of external vendors, ASTD presentation

1. Consultancy Special Interest Group
DELIVERING INNOVATIVE TRAINING SOLUTIONS®
ASTD Presents – “Working with External Vendors Forum”
FinancialTrainingSolutions
A division of CapitalWave Inc.
© 2010 CapitalWave, Inc. | All rights reserved.

2. Participants
Introduction:
James Musumeci, PhD, Director: Touro College
Kimberly Maybar, Asst. Director Professional St di
Ki b l M b A t Di t P f i l Studies: B
Baruch C ll
h College
Panelists:
Larry Bortstein, Attorney: B and I Law
Ingrid Giordano, Citigroup: Director Citi Program Management
Ann Marie Morris Alliance Bernstein : Multi Sector Senior Manager
Morris, Multi-Sector
Dane Cannon, SkillSoft: Account Executive
Moderator:
Bryant Nielson, Financial Training Solutions: Director
FinancialTrainingSolutions
© 2010 CapitalWave, Inc. | All rights reserved. Page 1

3. Confidential
Thoughts on Vendor
Management
Presentation to the American Society of
Training & Development
September 20, 2010

4. What We Do
We help clients optimize business transactions.
For clients who need to: We bring expertise in:
Build or transform vendor relationships Handling technology and outsourcing transactions
Complete corporate restructurings Integrating and rationalizing vendor contracts
Maximize efficiencies in the vendor Creating risk-based, self-service vendor
contracting process contracting processes
Engage specific expertise to complement Interfacing with business teams and in-house counsel
in-house resources
1

5. Detailed Practice Areas
Software & Infrastructure IT Services Data & Digital Content
Application Development Consulting & Professional Services Market Data & Data Management
Maintenance & Support Desk-side Support & Break/Fix Content Distribution & Licensing
Free & Open Source Licensing Open Source Risk Management Non-Disclosure & Confidentiality
User & Rights Management SAAS, ASP & Cloud Services Database Admin & Management
Data Center & Co-Location Wireless & Converged Voice Data Protection & Security
Hardware Purchase & Leasing Web Development & Design Privacy & Data Protection
Physical & Logical Security Help Desk & Service Desk Archiving & Data Retention
LAN/WAN/MAN File & Print Services Data Mining & Analytics
Domains & IP Engineering & Design Trans-Border Data Flow
Cabling Hosted Applications Electronic Discovery
Global Sourcing (ITO/BPO) Corporate Services Corporate Real Estate
Information Technology, Finance Travel & Expenses Leasing
& Accounting, HR & Benefits, Freight & Shipping Design & Construction
Help Desk & Call Center, Other Corporate Card Property Management
Business Processes Office Supply
2

6. 3 Reasons for a Vendor Management Program
Financial Controls
• Avoid Rogue Spending
• Rigorous Vendor Selection Process (considering both price and
capabilities)
Legal Risk Management
• Contractual Risk Allocation
• Contractual Rights, Obligations & Remedies
Regulatory Risk Management
• Data – customers must know where their data is and know its safe
• Financial Services
o Risk Assessment
o Monitoring & Controls
• Due Diligence
• Proper contract
• On-going monitoring & audits
3

7. Attributes of a Successful Vendor Management Program
Internal stakeholders want to work within the vendor management process
because the Legal process actually adds value/manages risk and is
perceived as adding value/managing risk.
Process is repeatable and predictable.
Lawyers focus on high risk legal & regulatory matters.
Business Teams focus on financial matters and business requirements.
Collect information before and after signing – and use it to make decisions
and manage business, financial, legal and regulatory risk.
4

8. Vendor Risk Assessment
Vendor will have access to confidential information about
customer employees (e.g., health information, social
security numbers).
Vendor will have access to important confidential information
(including material non-public information, source code to
customer-owned software, research, and pitch materials)
about customer or its clients.
Vendor will have access to personally identifiable information
about customer clients that are natural persons (e.g., social
security numbers, address, name, account information).
Vendor will provide a mission critical function to a regulated
function of customer (e.g., the broker-dealer or commercial
bank).
5

9. Vendor Risk Assessment Continued
Vendor will provide services from a country other than the country
in which customer uses the services (e.g., a Vendor’s India entity
provides services to customer’s U.S. operations).
Vendor will develop and provide intellectual property to be owned by
customer (e.g., software code, models, pitch materials and
reports).
Vendor will be providing IT services such as
implementation/migration services or IT development services
where reference to acceptance provisions and acceptance
criteria is a condition to a significant payment to Vendor.
6

10. Larry Bortstein
P: 646-240-4872
F: 866-955-9402
lbortstein@bandilaw.com
275 Madison Avenue
Suite 1518
New York, NY 10016
7

11. Vendor Management
Ann Marie Morris
ASTD Meeting September 20 2010
Meeting, 20,

12. Once upon a
time…
time
…back in the late ‘90’s

13. Will you sleep better tonight knowing….

14. That our military
purchases its tanks
from the cheapest
vendor?

15. Do companies hire
trainers and coaches
the same way?

16. QuickTime™ and a
Will train
decompressor
are needed to see this picture.
your f
folks-- Or do we
sell
cheap! ourselves
l
that way?y

17. So where does that leave us?

18. Well, We Have Evolved…
We
focus Thought Build
Trusted on We sit leaders long-term
Advisors at th
t the relation-
relation
ROI ships
table
together

19. Can we think…
(…please don’t
( l d ’
make me say it)

20. What Should We Look at
More Closely?

21. To Improve Relationships, We Need to
Assess These Components
p
1. Continuous Improvement &
Innovation
2. Governance Structure/Decision-
Making
3. Metrics
4. Skills
5. Communication
(…and a thought about relationships)

22. Continuous Improvement & Innovation
Do
D you d fi “
define “continuous i
ti improvement” th
t” the
same way?
Is your definition of “value” the same?
value
Are you a “thought leader?”
• White papers, articles, blogs, speeches?

23. Governance
Do you sit at the table together?
• A k relationship
Are key l ti hi
management roles understood?
• Do you know how to escalate
issues?
• Are decision-making processes
well-understood?

24. Metrics
Are you focused on ROI?
Are you measuring what matters?
Do your metrics tell you where to spend
money, time, resources?
y, ,
Do you measure lagging or predictive
indicators?

25. Skills
Does everyone understand our business and our
objectives?
bj i ?
Do we have effective project management?
Do those on the front line collaborate and resolve issues
effectively?
Are there incentives to motivate collaborative behavior?
15

26. Communication
Do
D you share i f
h information or
ti
keep it close to the vest?
How do you resolve issues?

27. One Last Thought about
p
Relationships
If you are a consultant, does the
phrase, “Let’s expand our
relationship” make you feel like
this?

28. If you are a hiring
consultants, do
you reach for
eac o
QuickTime™ and a
yourdecompressor
wallet?
are needed to see this picture.

29. To Improve Relationships, Ponder
These Components
p
1. Continuous Improvement &
Innovation
2. Governance
Structure/Decision-Making
Structure/Decision Making
3. Metrics
4. Skills
5. Communication

30. QuickTime™ d
Q i kTi ™ and a
decompressor
are needed to see this picture.

31. QuickTime™ and a
decompressor
are needed to see this picture.

32. A Challenge in Client-Supplier Relationships in Learning?
Dane Cannon, Account Executive
September 20, 2010

33. There will be a test!

34. Question 1: Buyers
Are you buying primarily to:
A) expand learning to address a backlog of requests?
B) increase savings by managing learning content & services?
C) align learning to critical job roles and increased need for talent?
D) integrate key learning assets with talent management efforts?
E) link performance of human capital to competitive advantage?

35. The SkillSoft Learning Growth Model®
A framework that maps the path through
stages of learning maturity
• Aligns learning to critical needs and business drivers
• Places learning within context of organization and business process
• Provides strategies to increase performance and accelerate business
results
Goal State:
Where do
you want
to be?
Stage 5
Stage 4 Optimize
Stage 3 Integrate
Stage 2 Align
Target
Stage 1
St
Supplement

36. Question 2: Sellers
Are you focused on:
A) price and product?
B) a specific operational problem?
C) a critical business issue ?
D) developing a mutually beneficial, long-term strategy that benefits
both businesses?

37. Beyond Selling Value

38. What Is the Relationship?
The evolution of a business relationship
Stage 5
Stage 4 Optimized
Stage 3 Systematic
Stage 2 Strategic
Stage 1 Targeted
Supplemental
Problem Business Strategic
Vendor Solver Resource Resource

39. Impact on the Characteristics of a Transaction
Vendor selection based mostly Partner selection based mostly
upon price upon relationship
Stage 5
Stage 4
Stage 3
Stage 2
Stage 1
Problem Business Strategic
Vendor Solver Resource Resource

40. So What?
• Buyers
• Sellers

41. Thank you for your participation!
http://www.skillsoft.com/infocenter/white_papers.asp
dane_cannon@skillsoft.com 347-275-3640
dane cannon@skillsoft com | 347 275 3640

42. Consultancy SIG
Consultancy SIG
Bryant Nielson, Chairman
Next Program:
“Professional Speaking Can Make o Break You”
o ess o al Spea g Ca Ma e or ea ou
Presenter: Mike Taubleb, Chief Match Maker
Promenade Speakers Bureau, LLC
Date: October 18th, 2010
Time: 6-8 pm
Location: Touro College
g
65 Broadway (the heart of the Financial District)
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www.ASTDNY.org
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