How Toyota Drives Greater Value with its Managed Service Provider

Speakers

Quinn MerrittNational Program Manager, HR OperationsToyota Financial Services

Michael WerblunExecutive Vice President, Enterprise SolutionsZeroChaos

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Strictly Confidential

Segment Overview/ Agenda

In this session, we will examine how Toyota Financial Services has evolved their contingent workforce program over the past five years. Learn about Toyota’s innovative program elements, their vision for the future, and their strategies for reaching their program goals. Take away actionable items that will enable you to achieve similar program innovation and growth through MSP optimization. This session highlights the importance of true teamwork and creative solutions that lead to a best-in-class program.

Analytics in a metrics-based dashboardCreative methods for engaging hiring managers- video vignettes and tablet surveysIntegration between the Talent Acquisition and MSP teamsLinkedIn recruiting groupsSupplier optimization, scorecards and forums

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ToyotaContingent Talent Overview

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Toyota North America

Toyota N. America = 3 Divisions (Manufact, Sales, Finance)

Multiple contingent staffing models across affiliates:Manage Service ProviderVendor on PremiseInternal Talent AcquisitionManager’s working with a favorite staffing supplier

250M+ annual spend across all 3 divisions

Mark up rates vary

Contract terms vary

We’re compliant but our compliance strategy is not integrated

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Toyota Financial Services Contingent Staffing Evolution

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Prior to 2010 Toyota Financial Services……

TFS on-site staffing provider (VOP) provided contingent staffing services and occasionally outsourced positions they could not fill

Marginal to poor service delivery

100+ suppliers

Hiring managers signed agreements with their preferred suppliers

Mark-up rates varied by manager and business unit

Lack of transparency for total contingent spend and total headcount

Minimal metrics

Poor SLA’s; no KPI’s

Transactional process; not well aligned with the business strategy

1099’s…..oh boy….the 1099’s!

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Service Delivery Grade

D-

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ZeroChaos Goes Live – April 2010

Vendor neutral model (suppliers sign standardized agreements with ZeroChaos not with TFS; ZC is the gatekeeper betw suppliers & mgrs)

70+ suppliers

Standardized process

Generic SLA’s

Fixed mark-up rates

General baseline reporting

Managers satisfaction survey (baseline established)

Compliance support (contingent privacy and records retention training, compliance audits)

Strategic elements to program delivery

Reduced usage of 1099 IC’s (independent contractors)

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C/C+

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Contingent Talent Today

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So have we continued to move the needle?

ZeroChaos facilitates frequent dialog between TFS hiring managers and their staffing suppliers!

34 suppliers (50% are Diversity Certified)

Detailed SLA’s AND KPI’s

Compliance prevention and audits (Foreign Export Control, Leave of Absence support, Affordable Healthcare Act)

Historical reporting influencing business strategy

Single source of record for all non-employees (contingent/ temps, outsourced consultants, independent contractors)

Strong integration with the business

Managers satisfaction survey improvements

Only six 1099 IC’s….YES…..only 6!

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B/B+

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So how did we make the jump?

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Strategy Focus

Quality = priority 1

Price = priority 2

Time = priority 3

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Strategy Elements

Remove the “Gate Keeper” mentalityZC facilitates meetings between TFS Managers and ZC suppliers to discuss new position requirements and hosting feedback sessions

Regularly spend time educating suppliersForumsSupplier scorecardsManager pre-recorded videos Provide annual awardsDevelop compliance gamesEducate on company culture, strategy and detailed project overviews

Metrics (emphasis on quality of hire)

Stronger integration between the business, the TFS Talent Acquisition team and ZeroChaos

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So let’s look at a few examples

Feel free to modify these tools to meet your needs!

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SLA’s Metric AttainmentPerformance

Metric Description Service Level / Response Time

Perfor Target Q4 FY13 Q3 FY13 Q2 FY13 Q1 FY13

Quality

Interview to Placement

Ratio

Measures the number of interviews conducted by hiring manager versus

number of placements by ZeroChaos team (excludes

HTF)1 in 4

Interviews 95%

1.9 Interviews Per Filled

Requisition


Requisition


Requisition


Requisition


Ratio


number of placements by ZeroChaos team (BTS Requisitions ONLY)

1 in 4 Interviews 95%


Requisition


Requisition


Requisition n/a

90 Day Turnover Rate (Voluntarily)

Percent of resource hires that voluntarily left the

organization within the first 90 days of employment Under 8% 95% Less than 1% Less than 1% Less than 1% 4.60%

90 Day Turnover Rate (Involuntarily)

Percent of resource hires that involuntarily left the

organization within the first 90 days of employment Under 5% 95% 1% 2% 3.0% 3.50%

Bi-Annual Program Surveys

Survey Hiring Managers, Stake Holders, Suppliers and

Contingents to measure overall program

effectiveness

Survey twice annually;

Overall 3.8 rating or higher

of program satisfaction 95%

April 2013 Overall Program

Satisfaction Rating = 3.75 n/a n/a

August ‘12; Overall Program

Satisfaction Rating = 3.8

TFS Program Stats

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Program Spend Q4 2012 Q3 2012 Q2 2012 Q1 2012 2012 TOTAL

Staffing $21,869,913.99 $22,564,034.49 $22,214,517.13 $20,630,951.60 $85,279,417.21

Payroll $309,673.30 $308,479.95 $308,315.90 $323,422.30 $799,891.45

Total Spend $21,969,587.29 $22,652,514.44 $22,302,833.03 $20,754,373.90 $86,679,308.66Total Requisitions Filled 29 103 61 60 253

Requisitions by Job Categories

Q4 2012 Q3 2012 Q2 2012 Q1 2012 2012 TOTAL

Accounting/Finance 1 9 4 7 21

Admin/Clerical/Call Center 17 46 (31 Summer

Interns) 27 26 116

Information Technology 7 32 24 23 86

Legal/HR/Other Professional 4 15 6 4 29

Total Active Suppliers 47 49 47 44 47 Suppliers (avg)

Diversity Supplier Usage

21 of 47 Suppliers are

WMBE Certified


WMBE Certified


WMBE Certified

16 of 44 Suppliers are WMBE Certified

Averaged 19 WMBE Certified

Suppliers

45% WMBE Suppliers

43% WMBE Suppliers

40% WMBE Suppliers

36% WMBE Suppliers

40% WMBE Suppliers (avg)

Program Metrics Summary

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FY 13 Q4 FY13 Q3 FY13 Q2 FY13 Q1Program Spend Staffing $20,109,060.94 $20,869,913.99 $22,526,626.40 $23,642,145.43

Payroll $572,869.16 $199,673.30 $170,371.97 $800,329.83 Total Spend $21,481,930.09 $21,969,587.29 $22,596,998.37 $23,742,475.26

Total Fiscal Year '13 Spend: $99,790,991.02 Order Fulfillment

Total Orders Filled 51 29 47 105Average Days to Fill

Accounting/Finance PMO / System Avg. 6.3 days / 7.3 days 1 day / 1 day 7 days / 18 days 6.9 days / 38 days

PMO / System Median 6 days / 6.5 days 1 day / 1 day 6 days / 15.5 days 5.5 days / 11 daysAdmin/Clerical/Call Center

PMO / System Avg. 7.1 days / 11.6 days 10. 2 days / 26 days 7 days / 12 days 6 days / 16 daysPMO / System Median 6.5 days / 7.5 days 9.9 days / 25 days 8.5 days / 18 days 5 days / 4 days

Information Technology PMO / System Avg. 8.5 days / 19.3 days 8 days / 20.6 days 14 days / 35 days 15 days / 57 days

PMO / System Median 8 days / 19.9 days 7.3 days / 19.9 days 14 days / 29 days 13 days / 40 daysLegal/HR/Other Professional

PMO / System Avg. n/a 7 days / 20 days 10 days / 26 days 13 days / 52 daysPMO / System Median n/a 6.5 days / 16.5 days 10 days / 21 days 11 days / 27 days

Average Resumes Submitted to TFS Per Order

Accounting/Finance 4.6 4 8.75 9.8Admin/Clerical/Call Center 2.5 3.1 8 3Information Technology 4.6 7.2 17.7 19.6

Legal/HR/Other Professional n/a 3 9.75 9Contingent Assignment Completions 42 59 78 66Total Contingent Worker Headcount

Staffing 333 353 399 430Payroll 28 5 3 3

Total Headcount 361 358 402 433Total Consultant/Outsource Headcount

5304 5353 5222 5182

Consultant/Outsource Completions 329 330 372 394Total Active Suppliers 37 47 48 47Total Active WMBE Suppliers 19 22 21 20

Pre-Recorded Manager Videos

Segment Review

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Supplier Forum

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Highlights and Overview included:TFS CultureZeroChaos Supplier ScorecardSupplier Optimization and ExpectationsMarket and Industry Hiring Trends and AnalysisHiring Trends and Projects at TFSTFS Requisition Requirements

70 attendees; 30 SuppliersGuest Speakers: Quinn Merritt & Andy Wilson2 Round Table Meetings with 10 TFS Hiring Managers

Compliance Game Show

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“Who wants to be a Tier 1 Supplier”

Compliance Interactive Game

Important Compliance Policies at TFS

$100

When is OFAC due?

B – the 30th of every monthA – the 1st of every month

C – the 15th of every monthD – the 5th of every month

D – the 5th of every month

100% On Time OFAC Submissions

Accountants Int’lAdeccoCreek SystemsiSpaceLA Business PersonnelLanceSoftLogin ConsultingMDTMEWAMidcomNumeric

PartnersPinpointRandstad/SapphireResources GlobalRose Int’lSourceAbilitySprague & AssociatesStability ITSystemartTEKSystemsThe RyTE ProsWest Coast ConsultingWollborg Michelson

PartnersPinpointRandstad/SapphireResources GlobalRose Int’lSharp DecisionsSourceAbilitySystemartTechlinkThe RyTE ProsWollborg Michelson

Accountants Int’lAdeccoCollaberaCondeCreek SystemsDisysLA Business PersonnelLogin ConsultingMDTMEWAMultivisionOdesus

Green = 100% both months

Supplier Awards

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Partners Consulting –Supplier of the Year

Collabera – Rookie of the Year

Odesus – Most Improved Supplier

Supplier Scorecard

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Supplier Billing Head count

Hired by TFS Supplier

Perform: % of candid submitted

to reqs received

Submittal Target # (2 resumes per req)

Positions Requested / Avail for Supplier to

Fill

Submittals by Supplier in ZC Admin

Interviews by TFS Hiring

Manager

Submittals to Interview

ratio

Interview to Hire ratio

Positions filled in Q1 FY14




Supplier 1 $6,684,031.18 267 1 180% 30 15 27 10 37% 40% 42 2 11

Supplier 2 $5,245,759.43 211 16% 38 19 3 2 67% 100% 20 1 1

Supplier 3 $3,385,372.80 135 2 0% 70 35 0 0 0% 0% 02 1 3

Supplier 4 $2,267,890.53 111 227% 30 15 34 6 18% 0% 00 4 2

Supplier 5 $855,948.74 29 67% 30 15 10 2 20% 50% 12 1 4

Supplier 6 $711,413.00 69 44% 108 54 24 9 38% 67% 62 4 1

Supplier 7 $681,220.34 52 15% 108 54 8 0 0% 0% 00 0 1

Supplier 8 $677,505.40 58 67% 30 15 10 2 20% 50% 11 2 1

Supplier 9 $611,166.90 36 47% 30 15 7 2 29% 50% 11 0 1

Supplier 10 $592,358.09 26 40% 30 15 6 1 17% 0% 01 0 2

Supplier 11 $586,915.25 11 1 20% 108 54 11 4 36% 25% 11 0 4

Supplier 12 $522,403.70 35 93% 30 15 14 3 21% 0% 00 0 2

Supplier 13 $515,347.00 41 1 69% 70 35 24 7 29% 86% 69 4 3

Supplier 14 $457,316.27 80 325% 8 4 13 5 38% 20% 10 0 1

Supplier 15 $455,339.93 50 7% 30 15 1 0 0% 0% 00 0 1

Supplier 16 $444,831.68 36 0% 30 15 0 0 0% 0% 02 0 0

Supplier 17 $402,372.83 37 40% 30 15 6 0 0% 0% 00 0 0

Supplier 18 $282,062.67 35 0% 30 15 0 0 0% 0% 01 0 0

Supplier 19 $275,184.90 73 1 65% 108 54 35 4 11% 75% 30 0 0

Supplier 20 $265,988.08 30 25% 8 4 1 0 0% 0% 01 0 0

The Future – Striving for the “A” Grade

Realtime iPad survey for Managers

Manager hiring performance reporting relative to peers and local benchmark

Linkedin Groups for contingent alumni

Consolidated Contingent staffing across North American

Becoming a critical step in the “business” planning process

Workforce SegmentationCritical vs. Core vs. Commodity based positions

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Contingent Alumni Network via Linkedin

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Questions ?

Let’s connect:Linkedin – [email protected] - #QuinnMerritt

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Appendix

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Metric Description Service Level / Response Time

Performanc

e Target

Q4 FY13 Q3 FY13 Q2 FY13 Q1 FY13

Quality


Ratio


number of placements by ZeroChaos team (excludes

HTF)1 in 4

Interviews 95%


Requisition


Requisition


Requisition


Requisition


Ratio


number of placements by ZeroChaos team (BTS Requisitions ONLY)

1 in 4 Interviews 95%


Requisition


Requisition


Requisition n/a

90 Day Turnover Rate (Voluntarily)

Percent of resource hires that voluntarily left the

organization within the first 90 days of employment Under 8% 95% Less than 1% Less than 1% Less than 1% 4.60%

90 Day Turnover Rate (Involuntarily)

Percent of resource hires that involuntarily left the

organization within the first 90 days of employment Under 5% 95% 1% 2% 3.0% 3.50%

Bi-Annual Program Surveys

Survey Hiring Managers, Stake Holders, Suppliers and

Contingents to measure overall program

effectiveness

Survey twice annually;

Overall 3.8 rating or higher

of program satisfaction 95%

April 2013 Overall Program

Satisfaction Rating = 3.75 n/a n/a

August ‘12; Overall Program

Satisfaction Rating = 3.8

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SLA’s Metric AttainmentPerformance Metric Description Service Level / Response Time Performance

Target Q4 FY13 Q3 FY13 Q2 FY13 Q1 FY13

Time

Resume Submittal Cycle Time

Measures cycle time of requisition received by the Supplier Network,

Supplier submittal to MSP, MSP pre-screening of candidate

resumes and submission to HM (excludes HTF)

Within 3-5 Business Days 98% 2.9 days 2.1 days 2.4 days 3.3 days

Resume Submittal Cycle Time - BTS

ONLY

Measures cycle time of requisition received by the Supplier Network,

Supplier submittal to MSP, MSP pre-screening of candidate

resumes and submission to HM (excludes HTF)

Within 3-5 Business Days 98% 3.2 days n/a n/a n/a

Performance Metric Description Service Level / Response Time Performance Target Q3 FY13 Q2 FY13 Q1 FY13

Spend

Hire Rate vs.. Rate Card High Rate

Percent of contingents hired at or below the Rate Card High Rate

based off Industry/Market Rates 90% or more 98% 85% 100% 85% 92.50%

Hire Rate vs.. Rate Card Low Rate

Percent of contingents hired at or below the Rate Card Low Rate

based off Industry/Market Rates 90% or more n/a 25% n/a n/a n/aPerformance Metric Description Service Level / Response Time Performance

Target Q3 FY13 Q2 FY13 Q1 FY13

Program Compliance

Diversity Supplier Usage

Measures the inclusion of Diversity Tier 2 Supplier participation

Supplier shall maintain a pool of no less than twenty percent (25%)minority suppliers in its

Vetted Vendor pool and twenty percent (25%) of spend for eighty percent (80%) of the reporting

period. 95%

51% Active Diversity

Supplier Ratio


Supplier Ratio


Supplier Ratio


Supplier Ratio

Audit of Supplier Base

Ensures 100% compliance to Supplier contracts (excluding grandfathered in

incumbent Suppliers)

Ensures 100% compliance to Supplier contracts (excluding incumbents grandfathered in) 100%

100% Supplier

Compliance n/a

100% Supplier

Compliance n/a

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Metric DescriptionService Level / Response

Time

Performance Target Q4 FY13 Q3 FY13 Q2 FY13 Q1 FY13

Time

Cycle Time -Approval to Candidate

Offer

Measures time from receipt of approved requisition and posting of the requisition to

the supplier network, resume submittal, resume review, candidate interview to

candidate offer (Excludes HTF)By job

category 95%

Accounting / Finance: 18

days 95% 5.3 days 1 day 18 days 13 days

Professional Other: 18

days 95% n/a 7 days 15.8 days 11 days

Clerical / Admin: 8 days 95% 9.6 days 24 days 9.8 days 4 days

Information Technology:

20 days 95% 12.8 days 14.3 days 18.7 days 18 daysCycle Time -Approval to Candidate Offer HTF

reqs

Measures time from receipt of approved requisition and posting of the requisition to

the supplier network, resume submittal, resume review, candidate interview to

candidate offer for HTF reqsBy job

category n/aAccounting /

Finance n/a n/a n/a 52 daysProfessional

Other n/a 51 days 48.5 days 61 daysInformation Technology 56 days 44 days 64.4 days 68 days

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Contingent Terminations

IT terms made up almost 50% of total terms in FY13 Q4 (similar to FY13 Q3)12% of terminations were conversions to Associate positions; Less than previous quarters 80% of the converted contingents to associates were in the Clerical Admin. SpaceSupplier 3, 17 and 25 made up almost half of all terminations

Reason Code Accounting / Finance Clerical/Admin Legal / HR /

Professional OtherProfessional Technical IT Grand Total

Converted to Toyota 6 3 7

End of Assignment 1 6 4 8 15

Other Position 3 3

Personal Reason 5 14 19

Relocation 3 1

Attendance 2 2Unsatisfactory Performance 1 1

Grand Total 1 23 4 28 48

Strictly Confidential36

Hard-to-Fill (HTF) Market AnalysisProject Managers Average 2012 Days to Fill: 28 system calendar daysAverage Hire Rate: $ 102; Pay Rate: $ 75

Hiring manager rates lower than Rate Card Rates by more than $20 hourlyOver the past 24 months, the demand in Torrance market is 7 times the resources As the market picks up we will see good PMs leave for increased pay ratesRecommendations:

ZC to work with suppliers to pro-actively recruit and submit PM candidatesZC work with TFS HM to pro-actively interview good talent; Pipelining candidates for future openingsZC to push TFS HM to provide feedback quickly – losing candidates quicker as the market picks up

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Hard to Fill Requisition Detail – FY 133 Hard to Fill Requisitions in FY13 Q4: SAS Data Analyst (AZ), HR BSA, Treasury DeveloperLowest percentage of HTF requisitions in the past 4 quartersHard to Fill Requisitions contain any requisitions that took longer than 40 calendar/system days to fill

BSA’s and PM’s are the top skill set we fill quarter over quarter; Continue to be HTF req’sDeveloper – ASP was open as an Associate position for 4 months; ZC filled it in 76 Calendar days; Treasury dept. didn’t have higher budget than 75 hourlySAS Data Analyst position; AZ location difficult geographically; Bill Rate Range -$30 from TFS Rate card high; Took 50 calendar days to fill

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5# of Reqs

TFS Job Title

FY13 Hard to Fill Req's by Job Title FY13 Q1

FY13 Q2

FY13 Q3

FY13 Q4

5.9% 6.9% 14.9% 11.4%

Q4 FY13

Q3 FY13

Q2 FY13

Q1 FY13

% of HTF’s Requisitions

Results

Recruitment Experience Improvement

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Timelinessof Resumes

Quality ofResumes

Quality ofCandidates

InterviewScheduling

ContractorPerformanc

e2010 Survey BTS Only 1% 1% 1% 1% 1%2011 Survey BTS Only 3% 12% 1% 2% 7%2012 Survey- All Hiring Managers 10% 28% 25% 13% 26%

0%

5%

10%

15%

20%

25%

30% ZeroChaos Program Performance

ResultsUser Experience Improvement

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Courtesy ofStaff

Availability

Professionalism

Knowledgeof Market

Trends

Understanding of ITskills and

experience

Responsiveness to

requests

ResolveIssuesTimely

OverallStaff

Satisfaction

2010 Survey BTS Only 1% 1% 1% 1% 1% 1% 1% 1%2011 Survey BTS Only 5% 3.60% 3% 5% 7% 6.70% 9.20% 9.40%2012 Survey- All Hiring Managers 12.60% 13.50% 13.80% 19.80% 21% 19.70% 32% 21.70%

0%

5%

10%

15%

20%

25%

30%

35%ZeroChaos Program Performance

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Previous Presentation(To Be Deleted)

Breaking Traditional Models“Gate Keeper”

Traditional MSP thinking puts a focus on control of the supply chain

Ultimately creates an adversarial relationship with suppliers instead of advocacy

Limits the information flow to a “need to know” basis creating a bottleneck

Restricts suppliers and hiring managers from working together towards success

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Toyota Financial Services (TFS) Model

Building a stronger partnership• ZC shares NMSDC diversity supplier booth with Toyota affiliates• TFS nominates ZC for Southern CA Minority Supplier award• Contingent LOA’s process aligned with TFS practices • TFS Talent Acquisition and ZeroChaos collaboration• ZC supplier forums with heavy TFS manager participation • ZC team receives high-level TFS & HR strategy overview • ZC team participates in TFS customer experience training• ZC conducts annual visits to remote locations to increase business

acumen/ strengthen business relationships with remote teams• TFS/ ZC panel discussion - CWS (2011 & 2012)• TFS speaking at future ZeroChaos “Rethink” conference (2012)• Video Vignettes of TFS hiring managers

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How Toyota Drives Greater Value with its Managed Service Provider · 2020-06-18 · Segment...

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Transcript of How Toyota Drives Greater Value with its Managed Service Provider · 2020-06-18 · Segment...