Roy Anderson EVP Procurement Services MetaProcure 470-514-3640 randerson@metaprocure

1. Skills You Need to Drive Value to Your CFO Roy Anderson EVP Procurement Services MetaProcure 470-514-3640 randerson@metaprocure.com

2. MetaProcure Procurement Transformation and Leadership in the following areas: Leverage our experience to drive your success Led by former Fortune 50 Procurement Officers and Executives Certified Minority Business Enterprise

3. CFO Top Priority: Save Money • Save money • without compromising service or quality. • Stay within the purchasing guidelines. • Capture savings • Generated by eProcurement and re-direct to student programs, instead of leaving the extra money in department budgets to be spent elsewhere. • Establish savings goals • Related to the pursuit of costs savings across all commodities

4. CFO Top Priority: Create Value • Do more with less • Illustrating our value as a department • In terms of cost savings, value generation, etc. • Look for Efficiencies across the board • Look for creative funding opportunities to fund projects

5. What is the Largest Challenge You Face? • Lack of Resources especially in terms of Personnel • Meetings • No budget • For spend analysis software, etc. • No time/staff to compile information on our own. • Not enough funding or support to maintain what have; buildings, parking lots, roads and grounds. • Manage the daily grind while strategizing the new approach, which will effectively create savings.

6. What is the Largest Challenge You Face? • Getting the detailed data we need • Then getting it into a format that we can make timely decisions and create useful reporting based on this information. • What types of reporting others are doing. • Boil down the rhetoric to know where my cost savings lie • Create value for end users so they utilize Procurement • End users think it is faster to order and pay by Pro-card • Until we prove there are advantages to routing orders through Procurement

7. What is the Largest Challenge You Face? Accomplish savings without alienating departments

8. Changing Income Statement Advertising Facilities Management Creative Engineering Mail Room Legal Services Sales Warehouse Logistics IT BPO HR Payroll, RPO Call Centers Customer Service Web Design Accounting Contract Manufacturing Data Entry R&D

9. YOU MATTER

10. The University Imperative • Sweet Briar survived with a $12M infusion of cash from Alumni 5.3/yr. After Sweet Briar College made its closure statement Mark Cuban tweeted "This is just the beginning of the college implosion.”

11. Figures from a Different Perspective National Center for Education Statistics https://nces.ed.gov/fastfacts/display.asp?id=84

12. The Mark Cuban Fix • Congress to cap student loans, the money's not available to universities" • "They have to either raise student aid or lower tuition” or …… Radically lower expenses or……. Fundamentally change the delivery of education • The $1 University Class www.businessinsider.com/mark-cuban-sweet-briar-college-college-debt-bubble-crisis-2015-3

13. Evidence of a Poor Contract

14. Energy Abundance the future is better than you think Global Population uses 16 terawatts of electricity That is the amount of energy our Sun delivers to the Earth Every 88 minutes 5000 times more energy than we use

15. Energy Transportation Fuel Costs Car Industry Dynamics Driverless cars (taxi’s, parking lots, not needed) Cost of Policing Space travel becomes cost effective Virtual classrooms MORE Abundance the future is better than you think Solar energy costs have dropped 50% in the past year What happens when it drops 99.99999% When we have so much energy It is unlimited

16. People are afraid of change

17. Mind Sets that block change • Not made here • Winner takes all • Not in my job description • Why are you making “waves” • Wait, That is MY JOB

18. Moat Builders • Moat builders

19. Embrace change

20. Change is a Given Blockbuster TWA Lehman Digital Equipment Chrysler Wang Labs Compaq Computer Enron Kodak Bear Sterns Radio Shack Trump Resorts

21. Understand Their Point of View

22. Old School Thinking Help Finance Help You Create Value! Pierre Mitchell Chief Research Officer Spend Matters (Azul Partners) “Finance has a better relationship with top management and is seen as an asset where Procurement is seen as a necessary evil (stepchild) that everyone hides from and wishes would disappear. Finance could actually be the enforcer and get policy compliance and support.”

23. Future Think • “Budgets, control investment priorities, and is the basis for profitability. Help Finance Help You Create Value! Pierre Mitchell Chief Research Officer Spend Matters (Azul Partners) That partner, equipped with a clear understanding of the value of moving non-core process to suppliers, and using supplier capabilities to the fullest is the fastest way to drive faster market response, lower cost & risk, and improve LOB performance.”

24. Yogi Berra “Baseball is 90 percent mental. The other half is physical.”

25. The CFO’s Input Galagher Jeff, CFO for Walmart’s US eCommerce business of the World’s largest company. Responsible for driving insights, growth strategies, and financial stewardship for Walmart’s fast-growing eCommerce organization. https://ieondemand.com/divisions/cfo/events/274/presentations/strategic-finance-the-benefits-of-integrated-finance-and-strategy?mkt_tok=3RkMMJWWfF9wsRonsqTOc%2B%2FhmjTEU5z16u0uXa6%2Bi5x41El3fuXBP2XqjvpVQcNkNL7LRw8FHZNpywVWM8TIKdQQt9l1IAzmCmk%3D

26. CFO Role Alignment of Metrics to Strategy Measure: Savings #1 Did we meet their Goals? Compliance Customer Enthusiasm for our results?

27. CFO Role Partner with the Business Take the lead on BIG initiatives

28. CFO Role Challenge the Status Quo Data Driven Decisions

29. Data Analyst – Expert: Bill Rates • -- 81 unique records; 57 different rates • -- Range: $50 - $140/hr. • -- Rate Card: $75/hr • -- 25% of $5.5M spend is at $60/hr. and lower $75./hr rate card

30. Optimization - Labor Strategy Financial Services Example ……………. More common distribution ____________ Actual distribution Potential Opportunity: Alter spend distribution and reduce cost by $285,000 (4.1%) Hire $2.7M Off shore $2.2M Contract Labor $1M $ .864M

31. CFO Summary • Need a seat at the table • Be famous for business value • Solve business problems • Have the right talent • Simplify

32. CFO Summary • Need a seat at the table • Be famous for business value • Solve business problems • Have the right talent • Simplify BUT……….

33. We have to eliminate the transactional to do the strategicGalagher Jeff, CFO for Walmart’s US eCommerce

34. HOW

35. "Not everything that is faced can be changed. But nothing can be changed until it is faced." - James Baldwin

36. Wireless Laptop on the Beach in Maui

37. Job Descriptions

38. It’s About the People “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.” [Fortune, Nov. 9, 1998]

39. Top 10 Skills in 2015 • Lower Impact • Negotiation • Cost Management • Transaction Process • Rising Impact • Strategic Thinking • Team Work • Market Knowledge • TCO • Influencing • Change Management Kay Bayen (kbayen@eipm.org) is people development adviser at the European Institute of Purchasing Management, based in Archand, France

40. How We Measure Procurement Value • Next Generation • Current Effort • Last Decade • Last Century Corporate Executive Board 2013 The Evolution of Procurement Performance.pdf

41. The Transformation Roadmap The Table Embedded in LOB plans Pre AP Group Seven step process Transactional Team Three bids and a buy More than a Quarterly Review Based on business imperatives Embedded Value, cross functional goals The next generation strategic space Internal Team Focus The transactional space

42. Want to Change the World? Start with a City Bruce Katz, VP and Director, Metropolitan Policy Program at The Brookings Institution Detroit • Take risks. Solve problems. • Simultaneously build a career … and rebuild a city Cities are the level of society that will address many of the economic, social and environmental challenges facing the world today

43. Attributes of Out Performers Transforming procurement to drive the enterprise agenda IBM Institute for Business Value 2014 They focus on improving enterprise success, not just procurement performance. They engage with stakeholders to understand and anticipate their needs and values. They embrace progressive procurement practices and tools to drive results.

44. A lesson from a Sales Manager Supplier View of Your Company • Partnership, Drive innovation, Best people, ideas and practices • High Fair and Reasonable Profits Low cost customer, Innovation engine Primed for growth Partner to Drive TCO • Profits Target Profitability • Sub Standard Profitability • Action: Reduce Services • Low • Best • Worst • Customers • Loss • Action: Grow or Eliminate

45. The ROI Payoff NAEP PROCUREMENT VALUE CREATION SURVEY

46. NAEP VALUE CREATION SURVEY Total respondents: 40+ institutions

47. In 2014, Procurement groups with eProcurement implementations, generated an average savings rate of 12x their annual budget

48. BENEFITS OF AN ePROCUREMENT SOLUTIONS Spend Under Management increased by more than 50% Savings as a percent of spend under management tripled 71% 5.6% 46% 2% P-Card spend as a percent of managed spend reduced by ~50% Savings as a percent of Budget increased almost four-fold 11.7x 22% 3.1x 11%

49. VALUE CREATION CHART Chart based on $1MM of Total Spend $80,000 MP Actual Performance $45,220 Ardent Partners Market Average Average for Leaders Average (Managers, Savers Followers) University Survey Average

50. MetaProcure Procurement Transformation and Leadership in the following areas: Leverage our experience to drive your success Led by former Fortune 50 Procurement Officers and Executives Certified Minority Business Enterprise