Google Confidential and Proprietary David Natoff Head Procure to Pay [email protected]The Search for Excellence in Procurement Stakeholder Relationship Management SYMPOSIUM San Francisco Bay Area, November 12 Tim Jones Head Supplier Sourcing [email protected]
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[email protected] Head Procure to Pay David Natoff ... Procure to Pay [email protected] The Search for Excellence in Procurement Stakeholder Relationship Management SYMPOSIUM ...
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What we thought of ourselves in Supplier Sourcing...
● Lack of investment in category knowledge.
● Difficult to scale - takes time to find great resources.
● RFP fatigue amongst team members.
● Single global integrated team and process.
● Great business alignment in key categories.
● Rigorous project documentation.
● High ROI in terms of Rate Reduction per Googler.
● Untapped potential of team members.
● Key stakeholders asking to take a bigger role.
● Increasing corporate governance agenda.
● Our single minded focus on rate reductions to the detriment of Google - they don’t measure full value.
● Stakeholders create their own fragmented Sourcing Teams more in tune with their specific needs.
Weaknesses
Threats
Opportunities
Streng
ths
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Time for a course correction
● Outsource administrative tasks
● Focus the team on Stakeholder Relationship Management
● Look for new measures of success
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Definitions
Customer Relationship Management
is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.
Relationship Marketing
(...) emphasizes customer retention and satisfaction, rather than a dominant focus on transactions.
Moving from "Process Facilitators" to "Business Advisors"
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To know what our customers think (and its good)
CSAT HangOut Parties!
Project (RFP Level) CSAT Surveys
Focus on Key (Gold + Platinum) Stakeholders. Deliverables: Attribute map and action plans to support the business.
Monthly operational surveys and interactive feedback videoconferences at project level. Deliverables: Quarterly CSAT Report.
Interviews with “Platinum”
StakeholdersInterviews with “Gold”
Stakeholders
VOICE OF THE CUSTOMERS
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RFP level CSAT surveys / trending example
Two question survey: 5-scale score and open feedback.
Quarter on Quarter
CSAT Feedback in Word Map
Target
Target
Source: Google Internal Data, 2014.
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Recorded feedback - CSAT hangout parties
Ideally with two or more stakeholders at the same time so they can interact.
Two questions only - takes about 15 minutes and the call is recorded (opt in):
1. What are the aspects of working with Supplier Sourcing that drive most value for you?
2. Improvement Opportunities - Magic Wand Question - Make your life easier.
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How close is Supplier Sourcing to the business?
Engagement Level Self-Assessment1 - Skeptic2 - Non-Aware3 - Aware - we work with the team, but not relationship with (yet)4 - Transaction bid5 - Frequent super user6 - Strategic Partner7 - Raving Fan
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Summary of key points
Identify your platinum and gold stakeholders. There are many ways to collect
the voice of the customer.
Experiment - launch and iterate.
Dare to be bad in the service of good.
Celebrate successes.
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Achievements
BRM Interviews with 60 stakeholders (46 Gold, 14 Platinum), resulting in 21
concrete action plans.
Source: Google Internal Data, 2014.
62% CSAT response rate with 97% satisfaction score (73%
very satisfied!)Team of 35 in Supplier Sourcing took 3$B of spend out to bid…
...and achieved rate reductions of $276M.
Hit the milestone of 1000 auctions.
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What’s next?
● Go deeper with our SRM Plans - building joint business plans
● Pilot using Salesforce for sharing Stakeholder intelligence and SRM plans
● Fund what is important and stop doing the rest.
“Know where to find the information and how to use it – That’s the secret of success.” Albert Einstein
Google Confidential and Proprietary
The Search for Excellence in Procurement Stakeholder Relationship Management