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Statements Of Work

Statements Of Work. Statements Of Work. What are their sources? What are they? What are they not? What should they be? How do you receive expected value from SoWs? How can you avoid problems? How can you improve SoW cycle time?. SoWs: What are their sources?.

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Statements Of Work

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  1. Statements Of Work

  2. Statements Of Work • What are their sources? • What are they? What are they not? • What should they be? • How do you receive expected value from SoWs? • How can you avoid problems? • How can you improve SoW cycle time?

  3. SoWs: What are their sources? • Sourcing/commodity managers / specialists. • Your legal / contracts functions. • Suppliers’ sales, marketing, legal functions. • Engineering. • Legal/Procurement Contract template libraries.

  4. SoWs: What are they? What are they not? • A SoW may be a standalone document or an attachment to a (master) development/services agreement. • A SoW should not be a marketing bulletin. • Eliminate all superfluous language (e.g., sales and marketing hype.) • A SoW should not read like a newspaper. • Obligations of each party should be clearly stated.

  5. SoWs: What should they be? Clear statements of WHO (which party) is going to do WHAT (the work to be performed) in accordance with what mutually-agreed upon acceptance CRITERIA (specifications) by WHEN (schedule) in exchange for what PAYMENT (price) under what TERMS (net 45, 2% 10 net 30).

  6. Critical Elements of SOW • Scope of Work • Duration – Time allowed to complete the work • Location-Where the work is going to be performed • Standards Applicable (if any) • Deliverables Schedule • Acceptance Criteria • Assumptions and any special requirements including roles and responsibilities of each party

  7. SoWs: How can you avoid problems? • Avoid “template mentality” • Don’t be eager to sign the SOW/Agreement without reading the relevant document and understanding the complete scope of work • Understand the deal. Know what you’re asking the supplier to do. • Insist upon clear, objective specifications. • Break work down into quantifiable / qualifiable milestones. • Require deliverables and your written approval to qualify for each milestone payment. • Don’t let payments get ahead of the work.

  8. How Can You Improve SoW Cycle Time? • Engage early with Global Sourcing and cultivate alliance. • Understand your team’s requirements. • Wherever possible use Your “paper.” • i.e., Your draft, template, etc. • Work with Global Sourcing to • Identify competing alternatives. • Support development of an effective negotiating strategy. • Clearly convey expectations to supplier.

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