Strategic sourcing for a competitive advantage in the hotel industry
Unlocking the Potential of Competitive Sourcing Raymona L. Stickell, Director Internal Revenue...
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![Page 1: Unlocking the Potential of Competitive Sourcing Raymona L. Stickell, Director Internal Revenue Service November 15, 2004.](https://reader035.fdocuments.in/reader035/viewer/2022062221/56649d5e5503460f94a3e536/html5/thumbnails/1.jpg)
Unlocking the Potential of Unlocking the Potential of Competitive SourcingCompetitive Sourcing
Raymona L. Stickell, Director
Internal Revenue Service
November 15, 2004
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A-76 as a Management Tool
Lower costs Increase efficiency Implement new
technology Streamline organizations Bring about
transformational change
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Area Distribution Centers:A Case Study 3 distribution centers across US Over 1300 employees, many temps Highly seasonal work Primarily GS-3/4 Declining workload Expensive facilities Older technology
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Barriers and Challenges
Union resistance Management resistance Incompatible guidance Procurement, new way of doing business Balancing resources – getting the best
resources for studies & continuing operations
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FirewallsFirewalls
Agency Tender
Official (ATO)
FIREWALL
Human Resource Advisor
FIREWALL
Office of Competitive
Sourcing (OCS)
Project Manager
PWS Team Leader
PWS Team
Contracting Officer
MEO Team Leader
MEO Team
Source Selection
Evaluation Board (SSEB)
Contracting Officer
Source Selection Authority
(SSA)
Implementation Team
FIREWALL
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Keys to Success
Communications Stakeholder involvement Business case analysis Functional specifications Marketing Standard templates & plans for
implementation
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Importance of Communications
Mandatory
-Feasibility Study
-Competition Decision
-Award Decision
Comprehensive– Town Hall meetings
– Training & briefings
– Fact sheets
– Employee Bulletins
– Q & A logs
– Award day notifications
– Interactive video
– Stakeholder comm.
– NTEU neg. & briefings
– Media & Congress
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Giving Bad News
Competitive Sourcing will result in fewer resources, so employees and managers must prepare for:– Conflicts in balancing resources (between
operations and the study)– RIF– Lower budgets
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Stakeholders in the Process Communications Labor Relations HR Processing Information Systems Retirement Specialists Learning & Education Real Estate/Facilities Finance/Budget Line & Dept. Mgt.
Organization Dev. Security Employee Assistance Legislative Liaison Congress Union State DoL s Procurement Legal Publishing
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Why a Business Case Analysis?
Help select the best candidate projects for public-private competition– High-potential for return on investment– Significant productivity improvements possible– Can leverage new technology
Identify potential competition
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ADC Business CaseMethod Define baseline
“As Is” Market Analysis Design notional
“To Be” Cost/value analysis Go/No go decision Procurement strategy
Results Baseline w/room for
improvements Declining work and
excess capacity Older warehouse
technology used Good market
competition New ways of doing
business available
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Acquisition: ADC Performance Work Statement
Specifications were “open” Defined results and performance standards Avoided “how to” PWS 25 pages plus attachments Workload defined in detail Support from IT and Facilities key Aggressive marketing
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Standard Implementation Tools
Employee Career Transition Assistance CD Quality Assurance CD Implementation Plan (hundreds of action
items, MS Project) Communications Plan Q & A Process (bidders, employees) Virtual Office
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ADC A-76 Results
61 perms No seasonal employees, only temp One major site Budget reduced by over half Modernized IT systems Same or improved quality
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Key Points for Executives
Competitive Sourcing can be an important management tool to: increase efficiency, lower costs, infuse technology, & streamline organizations
Impacts and requires coordination with internal and external stakeholders
Results in transformational change
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Internal Revenue Service: Office of Competitive Sourcing
Raymona Stickell
(202) 927-7550