3 Tips to Uncover Hidden Spend: Best practices for MSPs
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How do you uncover hidden spend and maximize the penetration of your MSP program in the creative & marketing category? As a specialty staffing supplier who works with many MSPs, Aquent has developed three tips. During this webcast, Paul Petersen, Aquent's VP of MSP Channel Partnerships will discuss: The challenges facing digital, creative, and marketing organizations How to increase spend under management in the digital, creative and, marketing categories Why it's critical to accommodate for the unique fulfillment requirements in these categories How to identify the suppliers truly invested in the success your program
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3 Tips to Uncover Hidden Spend: Best practices for MSPs
- 1. HIDDEN SPEND 3 TIPS TO UNCOVER and maximize penetration of your MSP in the creative & marketing category
- 3. GOAL #1 maximize penetration of the program Two Key Goals
- 4. Two Key Goals GOAL #2GOAL #1 maximize penetration of the program increase spend under management
- 5. Challenges Facing Marketing & Creative Organizations
- 6. Aquent/AMA Market Survey Marketing strategy positively impacts organization financially in 2013. Have the team needed to meet organization’s marketing objectives. Marketing team is well equipped to handle new trends and technologies.
- 7. CHALLENGE #1 right mix of internal & external resources Challenges Facing Marketing & Creative Organizations
- 8. #1 CHALLENGE #1 CHALLENGE #2 managers stretched incredibly thin Challenges Facing Marketing & Creative Organizations right mix of internal & external resources
- 9. CHALLENGE #2 managers stretched incredibly thin CHALLENGE #3 constant changes in technology Challenges Facing Marketing & Creative Organizations #1 CHALLENGE #1 right mix of internal & external resources
- 10. Three Important Keys to Specialty Supplier Success
- 11. Key #1 – Capture the Hidden Spend Within Your Program
- 12. 72% 10% 8% 7% 3% in-house employees independent contractors ad agencies staffing firm employees outsourced project teams 93% of Creative Spend is Outside Your Program
- 14. Capture Spend – Define Program Needs
- 15. #1 Promote MSP Value Define resources & program initiatives
- 16. #2 Define how to engage with specialty suppliers Promote MSP Value #1 Define resources & program initiatives
- 18. QUESTION #1 Specialty Supplier “Wheelhouse” Is the specialty supplier correctly aligned in your program?
- 19. Crossover – Spend not Realized Creative Engineering IT Marketing Ops Product Groups Product Marketing R & D User Experience Front End Developers CROSSOVERDEPARTMENTS Mobile App Developers UX Designers
- 20. Going Beyond the Score Card QUESTION #1 Is the specialty supplier correctly aligned in your program? QUESTION #2 System visibility past the score card?
- 22. Key #2 – Accommodate for Unique Requirements
- 23. Specialty Supplier – Unique Talent TECHNICAL SKILLS RATINGS
- 24. Specialty Supplier – Unique Talent TECHNICAL SKILLS RATINGS EXPERT TECH INTERVIEWS
- 25. PORTFOLIO REVIEWS Specialty Supplier – Unique Talent TECHNICAL SKILLS RATINGS EXPERT TECH INTERVIEWS
- 26. Key #3 – Identify Suppliers Invested in Your Program
- 27. Invested Suppliers Commit to Behavior Goals
- 28. GOAL #1 Invested Suppliers Commit to Behavior Goals internal staff training
- 29. Invested Suppliers Commit to Behavior Goals GOAL #1 internal staff training implementation & adoption initiatives GOAL #2
- 30. GOAL #3 educate end user on MSP value & process implementation & adoption initiatives GOAL #1 internal staff training GOAL #2 Invested Suppliers Commit to Behavior Goals
- 31. IDEAL SUPPLIER QUALITIES Ideal Qualities
- 32. Specialty Suppliers – A Successful Partnership
- 33. Questions?
- 34. Presenter: PAUL PETERSEN Vice President, MSP Channel Partnerships 248-430-4622 ppetersen@aquent.com
- 35. About Aquent At our core, Aquent is about helping companies adapt to change, find new ways to work, and stay competitive.
Editor's Notes
- House Keeping for webcast- - Encourage questions via chat function in tool - let everyone know they are in listen only mode - this session is being recorded and will be forwarded to you at the email address that you have providedGood morning everyone and thank you for joining us today. We are excited to bring forward some key insights and tips to help all of you work more strategically with your msp specialty supplier community.Our agenda today is to really unbundle the white paper concepts that most of you have had the opportunity to read and give you some key take-aways that you can use practically in your current engagements to enhance your success with creative or specialty suppliers.As we talk about in the white paper, there are three keys tips that we have found that assist our MSP partners better engage Aquent as a supplier on their engagements. First we will speak to how we work together to find hidden spend you are currently realizing in your programs. Then we will talk through how to set specialty suppliers up for success by recognizing and accommodating for the unique requirements of their particular niche. Last we will walk through the elements of an “invested supplier relationship.As Katja has indicated, we will be fielding questions at the end of the presentation and look forward to answering questions from the group
- As we pause and really recognize the goals of your MSP program, it really boils down to two key goals that your are required to accomplish”You need to find a way to maximize the adoption and penetration of a your MSP program at and enterprise level. Here you need to establish the value of the MSP and get buy-in from leadership, field staff and end users to ensure compliance and maximum use.Second, you really must find a way to increase the spend under management. Although a close cousin of the first goal, it differs in the fact that we begin to look at ways to help the user base better understand how to maximize the benefit and use of a CWS. by exposing them to alternative thinking in regards to resources. Helping them how leverage a supplier community and bring spend into view that historically has lived outside of the.Sure there are details that surround each of these goals and they will be subtly different from program to program but in the end, with out accomplishing these two goals, your program longevity will always be challenged. Although seem to be a relatively rudimentary concept, it seems to capture a great deal of our thoughts and time as we implement and drive for adoption within most launched MSP programs.Transition to next slide: Before we get to far into how to accomplish these goals, a short explanation of challenges that face specialty suppliers (specifically those that face the creative/marketing/digital space:
- BuildAs we pause and really recognize the goals of your MSP program, it really boils down to two key goals that your are required to accomplish”You need to find a way to maximize the adoption and penetration of a your MSP program at and enterprise level. Here you need to establish the value of the MSP and get buy-in from leadership, field staff and end users to ensure compliance and maximum use.Second, you really must find a way to increase the spend under management. Although a close cousin of the first goal, it differs in the fact that we begin to look at ways to help the user base better understand how to maximize the benefit and use of a CWS. by exposing them to alternative thinking in regards to resources. Helping them how leverage a supplier community and bring spend into view that historically has lived outside of the.Sure there are details that surround each of these goals and they will be subtly different from program to program but in the end, with out accomplishing these two goals, your program longevity will always be challenged. Although seem to be a relatively rudimentary concept, it seems to capture a great deal of our thoughts and time as we implement and drive for adoption within most launched MSP programs.Transition to next slide: Before we get to far into how to accomplish these goals, a short explanation of challenges that face specialty suppliers (specifically those that face the creative/marketing/digital space:
- As we pause and really recognize the goals of your MSP program, it really boils down to two key goals that your are required to accomplish”You need to find a way to maximize the adoption and penetration of a your MSP program at and enterprise level. Here you need to establish the value of the MSP and get buy-in from leadership, field staff and end users to ensure compliance and maximum use.Second, you really must find a way to increase the spend under management. Although a close cousin of the first goal, it differs in the fact that we begin to look at ways to help the user base better understand how to maximize the benefit and use of a CWS. by exposing them to alternative thinking in regards to resources. Helping them how leverage a supplier community and bring spend into view that historically has lived outside of the.Sure there are details that surround each of these goals and they will be subtly different from program to program but in the end, with out accomplishing these two goals, your program longevity will always be challenged. Although seem to be a relatively rudimentary concept, it seems to capture a great deal of our thoughts and time as we implement and drive for adoption within most launched MSP programs.Transition to next slide: Before we get to far into how to accomplish these goals, lets pause for a short explanation of challenges that face specialty suppliers (specifically those that face the creative/marketing/digital space):
- Move to next slide in 8 secondsNow it may not be quite as bad as she makes it out be but creative and marketing organizations throughout the industry are faced with some pretty big challenges.
- To find out more about what keeps Creative and Marketing leaders awake at night, Aquent and the American Marketing Association (AMA) got together to study the challenges that marketing groups typically face: What we found has direct application to how we navigate relationships with our clients and especially our MSP partner programsAs we look at the graph, we see that: -71% agree that their marketing strategies will have a positive impact on the financial performance of their organization-Over half marketing managers feel they do not have the needed staff to accomplish the marketing initiatives currently underway within their organization-And over 50% feel they are not equipped to deal with the ever changing technology trends So what they are telling us is that they know they must perform yet have significant concerns over the resources available to effectively accomplish their goals
- We boil this survey down into 3 key issues that are impacting creative end users and their leadershipKey Project Managers are have a difficult balancing the mixture of IC, Contractors and internal staff to get the job done (relying more on their ability require HR to be more efficient with req fulfillment and the ability to maintain their own talent network – creating a more broad base of skills without SME to draw onThese managers are stretched to capacity with ultimate responsibility over released content, employee performance, corporate messaging, networking, leadership management (up and down the corporate ladder)Tie this all together with an ever constant technology shift makes it nearly impossible to stay in tune with the latest efficiencies and tools to get the job doneSummarize and drive point: Aquent has been working with the largest marketing and creative organizations in the world for more than 26 years and we’ve developed a deep understanding of the unique challenges facing these groups. Simply stated, they truly need an MSP organization to come in and help them structure their labor programs to give enough relief to let the Program Managers get back to their core role – driving company messaging and imagery.For most creative and marketing organizations, overcoming the challenges they’re facing means using a combination of external resources to get work done. For MSPs, and their specialty suppliers, this means vast opportunity. However, for your program to succeed with contingent workforce clients in the marketing and creative category, we need to better understand how to navigate this space as a a means to increase your client’s overall satisfaction ...increasing adoption and inherent spend you have yet to discover.
- BuildWe boil this survey down into 3 key issues that are impacting creative end users and their leadershipKey Project Managers are have a difficult balancing the mixture of IC, Contractors and internal staff to get the job done (relying more on their ability require HR to be more efficient with req fulfillment and the ability to maintain their own talent network – creating a more broad base of skills without SME to draw onThese managers are stretched to capacity with ultimate responsibility over released content, employee performance, corporate messaging, networking, leadership management (up and down the corporate ladder)Tie this all together with an ever constant technology shift makes it nearly impossible to stay in tune with the latest efficiencies and tools to get the job doneSummarize and drive point: Aquent has been working with the largest marketing and creative organizations in the world for more than 26 years and we’ve developed a deep understanding of the unique challenges facing these groups. Simply stated, they truly need an MSP organization to come in and help them structure their labor programs to give enough relief to let the Program Managers get back to their core role – driving company messaging and imagery.For most creative and marketing organizations, overcoming the challenges they’re facing means using a combination of external resources to get work done. For MSPs, and their specialty suppliers, this means vast opportunity. However, for your program to succeed with contingent workforce clients in the marketing and creative category, we need to better understand how to navigate this space as a a means to increase your client’s overall satisfaction ...increasing adoption and inherent spend you have yet to discover.
- BuildWe boil this survey down into 3 key issues that are impacting creative end users and their leadershipKey Project Managers are have a difficult balancing the mixture of IC, Contractors and internal staff to get the job done (relying more on their ability require HR to be more efficient with req fulfillment and the ability to maintain their own talent network – creating a more broad base of skills without SME to draw onThese managers are stretched to capacity with ultimate responsibility over released content, employee performance, corporate messaging, networking, leadership management (up and down the corporate ladder)Tie this all together with an ever constant technology shift makes it nearly impossible to stay in tune with the latest efficiencies and tools to get the job doneSummarize and drive point: Aquent has been working with the largest marketing and creative organizations in the world for more than 26 years and we’ve developed a deep understanding of the unique challenges facing these groups. Simply stated, they truly need an MSP organization to come in and help them structure their labor programs to give enough relief to let the Program Managers get back to their core role – driving company messaging and imagery.For most creative and marketing organizations, overcoming the challenges they’re facing means using a combination of external resources to get work done. For MSPs, and their specialty suppliers, this means vast opportunity. However, for your program to succeed with contingent workforce clients in the marketing and creative category, we need to better understand how to navigate this space as a a means to increase your client’s overall satisfaction ...increasing adoption and inherent spend you have yet to discover.
- So with these challenges in mind and as we look at the issues presented to MSPs as they look to navigate the world of specialty suppliers within the creative, marketing and digital space, we offer up 3 keys or tips to turn suppliers into viable members of your supply community being able to bring a higher level program to bear to your client.
- Tip #1Capture the Hidden Digital, Creative, and Marketing Spend Within Your Program
- Aquent commissioned a survey of 580 marketing, creative, and digital hiring managers to uncover flexible workforce trends in their departments. The average organizational allocation of marketing & creative work* was as depicted in the diagram you see on the screen. What we found interesting from this study (which rings true in the majority of our programs) is that 93% of the spend that could be in an MSP program is not. Hard to take this bit of news but it is true. Simply stated, given the creative leadership teams have deep requirements to control messaging that comes from their group, they tend to hold tight to traditional concepts that in house staff are the best way to control work output and through put.What we have found thought over the years is that the end user community just doesn’t understand the value and benefit of a CWS program and how to leverage their needs against a solid MSP model. In candid conversations they are telling us that :INHOUSE staff - over burdened your internal HR staff to find talent to do the job correctly - Expensive to onboard and off board - Soft cost of training, ramp up time etc - work toward retention ...keep them busy, challenged and engaged in your culture -provide for only broad skill sets to rationalize the headcountIcs (independent contractors) -Risky as they need to pass IRS testing to ensure they are categorized and dealt with correctly(the IRS has been pretty serious about getting this right) -Are not as engaged in the culture or environment due to multiple servicing customers (creating a lack of output control) -risk of sharing your ideas with others (loyalty to the brand)Ad Agency - Have a tendency to bundle strategic and tactical initiatives to add billed hours making it an expensive proposition -decoupling works well and saves a great deal on expensive tactical workOutsourced -projects via SOW or other mechanismStaffing Firm employees -make up only 7% -imagine if we could capture 10% of the spend currently outside your program...you could double the spend quickly and set a path to gain additional spend as the success of the program spreads 93 % spend is out side your programTo put into perspective the multiple resources available to end users with the creative environment (which rings true for most niche providers), we find the majority use in-house staff to accomplish the unique tasks of getting creative accomplishedI
- The use of a contingent workforce is still a new business approach in marketing and creative. Hiring managers tend to think in terms of adding internal staff or using their own network of independent contractors rather than identifying ways to harness the power of a contingent workforce. As marketing channels continue to proliferate, creative and marketing organizations can shift that spend to a highly scalable, flexible workforce that can work on mission-critical projects (i.e., projects that require a high degree of control) on a contract basisAs an example of a discussion we would have with a marketing leader, we begin to recognize their needs and how they perceive resources available to them. This is an actual tool we use to show the Marketing Manager how they can use a CWS program to maintain control of product output while maximizing flexibility and cost savings. - freelancers and Ics don’t offer creative control and tend to ad risk to human resource programs as the IRS has become very interested in compliance -Studios and agencies again offer minimal control and tend to be expensive initiatives (ref bundling and our need to educate end users on how to “decouple” these programs and bring the tactical portions into the CWS program -internal staff is typically broad in skills and scope not offering SME -CWS offers scalability, flexibility, control, cost effectiveness and program complianceFor many hiring managers, it’s difficult to determine the most effective use of the resources listed above. Many marketing and creative organizations work with a single full-service agency or sometimes even multiple boutique agencies on campaigns ranging from traditional (print, tv) to digital (mobile, social, search). This can add up to big dollars. Survey 580 marketing, creative and digital hiring managers72% in house to get job done10 IC8% Ad Agencies7% Staffing2% outsourcedSimply stated, hiring managers stick to their internal networks of staff to get the jobs done...creating and inflexible workforce that can be heavy and expensive. - most keep this model because they know nothing different -Need to promote value of a contingent work force -highly skilled -cost effective -extremely flexible -SME for a particular issue, project etc -Need to prove value of the MSP process and make it simple
- Truly listening to PM staff to learn clients requirements, nuisances and “quirks...how can we deliver the very best talent to help our mutual client succeed
- It is our responsibility as the supplier to gain a complete understanding of the program (just as we would any other client – cite all the work we would put into a client relationship)... -describe resources available (more than just the standard recruitment and program support – talk to being a SME in the creative space providing thought leadership and guidance to help MSP better navigate the creative category) -promote the value of the program and the MSP value proposition...always acting as an ally and trusted partner to the MSP initiatives -gain and complete understanding of program goals, challenges and expectations and share that with internal staff and MSP relationships (end users, PM staff etc)
- Also our responsibility to help the internal workings of the MSP by: - helping PM team understand how to engage Aquent as a specialty supplier - the quirky style in which we deliver - the nuances of creative candidates -how to tap into our resources
- As it is ultimately important to understand the MSP engagement to better understand where spend might be hidden, we find some basic work in evaluating specialty supplier capabilities and ensure they are aligned correctly within the program
- Have you checked...discuss two examplesLarge Govt program with a Global MSP provider – missed 11 categories where Aquent could help them locate specialized creative talentSometimes it is a smaller scale like program at PG&E with Agile 1...we found that we were not aligned as an IT supplier and were missing orders that went unfilled for days, weeks or even months because the IT suppliers were not familiar with the space.In the end, MSPs must engage their suppliers and get a better understanding of their capabilities (where the do their best)...put them to work where they do their best workAre your suppliers scope of services correctly aligned in your tool?
- Marketing and creative staffing providers typically provide temporary and contract-to-hire talent to marketing, digital and creative departments to bring expertise and or increase the bandwidth of your client's in-house team. Here are broad categories of digital, marketing and creative talent provided by these niche staffing providers.User Experience, Digital and Graphic Design Online, Social and Integrated MarketingResearch & Analysis and Product ManagementWriting and ContentProject Management, Producers and Creative ManagementWeb and Mobile Design and Front End DevelopmentOne of the most typical mistakes an MSP encounters with niche suppliers is mis-catagorization: Not exposing the niche supplier to all areas in which that can help find the contingent staff your client requires.In considering the answers to these two questions, an MSP must take deliberate and specific action to ensure they completely understand their specialty supplier’s capabilities by engaging them in an analysis of where the supplier has strongest and proven fulfillment capabilities. We suggest both field and executive involvement to validate scope of services (current client references coupled with a strong scope of services outline are a great beginning). Once capabilities are understood, your program management team can easily categorize the supplier correctly and maximize the effectiveness of this service in your programAdditionally, category visibility becomes key in your long-term strategies to have only the most qualified providers in your supplier community. Creating a segregated and unique category for each niche supplier vertical (like creative/marketing and digital), will allow for a clear understanding of performance of each supplier within the particular vertical citing fulfillment specific KPIs and SLAs data which can be easily identified and validated.
- category visibility becomes key in your long-term strategies to have only the most qualified providers in your supplier community. Creating a segregated and unique category for each niche supplier vertical (e.g., creative, marketing, and digital) will allow for a clear understanding of performance of each supplier within the particular vertical, citing fulfillment-specific KPI and SLA data which can be easily identified and validated. Some MSP programs already have accomplished this type of categorization moving away from categories like “professional other/services” or other categories that are a catch all for unfamiliar suppliers
- Tip #2: Accommodate for unique fulfillment requirementsAs I hinted to in creating a separate community within the tool...the same goes for actually handling the uniqness that goes along with fulfilling niche suppliers positionAre you able to do this...makes all the difference in adoption as end users and hiring managers feel more comfortable...they are able to see unique candidate profile info - like portfolios
- LEARN THIS SLIDEAs mentioned previously, the use of a contingent workforce is still a new business approach in marketing and creative. Reasons for this vary, but typically it’s because the fast-paced and deadline-driven culture in marketing and creative means hiring managers require a higher than usual comfort level with the skills, experience, and design aesthetic of the candidates. This cultural reality often means marketing and creative professionals will tap their own network to source candidates for project-based work. Given everything marketing and creative leaders must juggle on a daily basis, both building and maintaining a personal network of talent can be a daunting task. Continuously networking with professionals (particularly for in-demand roles) can be particularly time-consuming. Educating the end user on how working within your client’s MSP program can help source candidates with the right skills, experience, and design aesthetic is important, however your program must accommodate for the unique fulfillment requirements of marketing and creative departments.Removing a “one-size-fits-all” mentality in terms of fulfillment requirements will give marketing and creative end users the comfort level they require and allow for broader adoption of the program within this category.
- LEARN THIS SLIDEAs mentioned previously, the use of a contingent workforce is still a new business approach in marketing and creative. Reasons for this vary, but typically it’s because the fast-paced and deadline-driven culture in marketing and creative means hiring managers require a higher than usual comfort level with the skills, experience, and design aesthetic of the candidates. This cultural reality often means marketing and creative professionals will tap their own network to source candidates for project-based work. Given everything marketing and creative leaders must juggle on a daily basis, both building and maintaining a personal network of talent can be a daunting task. Continuously networking with professionals (particularly for in-demand roles) can be particularly time-consuming. Educating the end user on how working within your client’s MSP program can help source candidates with the right skills, experience, and design aesthetic is important, however your program must accommodate for the unique fulfillment requirements of marketing and creative departments.Removing a “one-size-fits-all” mentality in terms of fulfillment requirements will give marketing and creative end users the comfort level they require and allow for broader adoption of the program within this category.
- LEARN THIS SLIDEAs mentioned previously, the use of a contingent workforce is still a new business approach in marketing and creative. Reasons for this vary, but typically it’s because the fast-paced and deadline-driven culture in marketing and creative means hiring managers require a higher than usual comfort level with the skills, experience, and design aesthetic of the candidates. This cultural reality often means marketing and creative professionals will tap their own network to source candidates for project-based work. Given everything marketing and creative leaders must juggle on a daily basis, both building and maintaining a personal network of talent can be a daunting task. Continuously networking with professionals (particularly for in-demand roles) can be particularly time-consuming. Educating the end user on how working within your client’s MSP program can help source candidates with the right skills, experience, and design aesthetic is important, however your program must accommodate for the unique fulfillment requirements of marketing and creative departments.Removing a “one-size-fits-all” mentality in terms of fulfillment requirements will give marketing and creative end users the comfort level they require and allow for broader adoption of the program within this category.
- Tip #3: Identify suppliers invested in your program
- Build but pause on the first slide to reflect on what an invested supplier behavior should look likeTruly invested suppliers should be willing to commit to:Must be a complementary relationshipUnderstanding MSP unique needs and requirementsStaying within the guideline of the program (while still advising as to best practices that focus on the success of the program)
- Internal staff training on the tool – teach those servicing the account how to work the tool...to ensure we readily submit candidates, solicit feedback and accurate onboard contractor
- Get ahead of the curve...discuss partnering example (ref Guidant/Hallmark) – strategic alignment to better understand client requirements, unique contracting attributes, onboarding etc. -our job is to help our MSP partner best approach deliverables for their client (which any supplier should engage with this thought process)Early involvement in implementation and adoption initiatives
- Educating the end user on MSP value and process ...work with end users pre, concurrent and post implementation to discuss value of MSP and how to comply (based on past experience with niche suppliers, this is where most stray...it is different, potentially uncomfortable and perceived as a disruption or roadblock on “how they have always done things”Our partnerships with MSPs reinforce the complementary relationship between specialty supplier and MSP. Our ultimate goal is the same—to quickly find the right people to help clients accomplish their goals. Unfortunately, there are still staffing suppliers that hold the perception that MSP programs are specifically designed to prevent suppliers from soliciting feedback directly from the end-user community of the client. In speaking with leadership in virtually every MSP within the staffing industry, we know that this is not the case, and we are doing our part to change this perception among suppliers. At the end of the day, the client end user, MSP program management, and supplier recruitment staff all want to create a relationship based on trust. At Aquent, we’ve found that the key is complete honesty about our specialties, capabilities, and limitations. This helps us to avoid over-committing and under-delivering. You engage suppliers to fill gaps in the supply chain. Using an incumbent supplier is the easiest route, though prior engagements are no guarantee of future success. Ultimately, the success of your program at the end user requires you to have reliable and trusted suppliers.
- It can be difficult for an MSP to find qualified suppliers to help serve the need of the client while being a trusted resource to facilitate long-term growth strategies. Suppliers that can prove that they are truly invested in your program can assist in moving spend under management, ensure the proper integration and adoption of the tools and processes, and help communicate the value of an MSP program.In the end, the relationship starts to take on the look of a very balance “vent” diagram...each party has their role and responsibility and with proper dedication and accountability, the program moves forward in a very positive direction. So, to recap the three tips …
- Questions?Field questions from webcast dialogue