Launching & Sustaining a Successful ECMS Implementation

1. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

2. Launching & Sustaining a Successful ECMS Implementation Marlene Bauer (CMSI) Deborah Adams (Qualcomm) Samuel Barton (Toyota) NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

3. Critical Success Factors for a Successful Implementation Marlene Bauer NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

4. Implementation After you’ve: Assessed the need Made your business case & forecast the ROI Obtained management buy-in Got the budget $$ Licensed the Contract Manager software… Now what ? ? ? ? NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

5. Critical Success Factors for: Effective implementation – meet your objectives(contract visibility, ROI, etc.) No re-work(do it right the first time) GOOD DATA Active use of the system(no shelfware) Sustained management support NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

6. Critical Success Factor #1 Project-manage your implementation Clear objectives & scope Management support for project – staff allocation etc. Team roles & responsibilities Project plan Pilot & roll-out Testing! Communication – team, stakeholders, mgmt NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

7. Critical Success Factor #2 Phase your implementation Workgroups Functionality Legacy contract conversions Establish Priorities NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

8. Critical Success Factor #3 Configuration “Do”s and “Don’t”s Do take a holistic approach Don’t reproduce another system in your ECMS Do capture data only once Don’t track it unless you want to report on it Do standardize your contract templates as much as possible Do use system features to reduce your number of Standard forms NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

9. Critical Success Factor #4 Integrate your ECMS into your business processes Define & Document your processes Marry the system to your processes Policy & procedures NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

10. Critical Success Factor #5 Document business processes and field usage rules Becomes key part of training Maintain (update) the documentation NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

11. Critical Success Factor #6 Create and distribute targeted, effective reports Audience: staff, management, internal customers / stakeholders Powerful tool for sustained buy-in NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

12. Critical Success Factor #7 Training Tailored to audience New user / upgrade training NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

13. Critical Success Factor #8 Manage change control Within workgroups Across workgroups / enterprise NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

14. Building an Enterprise ContractManagement Solution Deborah Adams NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

15. Buy-Side Sell-Side Standards & Memberships Buy-Side CM System Manufacturing Logistics CM System International Finance Government Legal Tale of two solutions… Then May 2002 Now September 2004 NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

16. System Management Team Single Solution • Part-time administration team: • 25% of Project Manager • 50% of Business Analyst • 20 User Accounts; all in the procurement area • Focus on tactical, day-to-day concerns Enterprise Solution • Full-time management team: • One Project Manager • Two Business Analysts • One Contract Assistant • Nearly 400 user accounts in US, Europe, and Asia supporting all contract activity • Focus on support of strategic mission NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

17. System Users Single Solution • Type of Users: • Contract Managers • Type of Accounts - Mostly “Write” accounts • Focused on data entry and management of contract milestones Enterprise Solution • Type of Users: • Contract Managers • Finance Staff • Customer Support Staff • Account Managers • Type of Accounts –2:1 ratio of “Read-Only” accounts to “Write” accounts • Focused on process improvement NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

18. Considering Integration Buy-Side CM System System Architecture Stand-Alone System ERP LDAP Email External Customer Web Site NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

19. Within 6 months … Build it and they will come • Other teams within the Enterprise were struggling with similar issues • The word got out: • Automated notifications based on contract milestones (Event Alerts) • Success stories NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

20. Well, they came… now what? We found ourselves with a queue of user groups wanting to implement… NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

21. Regroup We looked strategically and tactically at how we could grow the system from a single use solution into an Enterprise solution NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

22. First question…. Buy Side Sell Side Division A Division C Division B NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

23. Strategic considerations… • Executive sponsorship • Challenged us to ensure the system is accurate, thorough, and easy-to-use • Challenged us to find a common ground to maintain only one database • Vendor relationship • Customer service model • Vision, core values, and critical success factors NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

24. Tactical “rules” for growing the system • Keep the basic record common to all; any group-unique data belongs in supplemental areas of the system • Require users to participate in data load • Mentor power users • Enforce the business rules through auditing and reporting • Form functional-based steering committees to guide system enhancements and upgrades NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

25. Developed an implementation model… SecurityModel /Data Sharing • Concept model • System configuration exercises: • Security model definition • Contract classification scheme • Proof-of-concept • Data load • Training • Go-Live • Mentoring and monitoring Contract Classification P- C- S- E- Level 1 Level 2 Level 3 NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

26. Today’s Environment • Executive leadership • Executive reporting • Process improvement initiatives • Building alliances with Finance and Customer support teams • SOX compliance activities • Implementation model that works NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

27. Achieving Contracting Excellence The Toyota Way Samuel Barton NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

28. Challenges • Y2K Project forced turnaround timeline • Contracts inventory = One • Vendor Management philosophy misaligned • IT management lacked expertise in critical areas • Limited expertise and support from key departments NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

29. Foundational Strategies People + Processes + Tools + Change Readiness + Training = PREDICTABLE RESULTS NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

30. Foundational StrategiesProcesses ProjectApprovalProcess / ITGovernance 1. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

31. 1 2 3 ESC Approval Division Officer Approval Business Case 6 Repeat/ Complete 5 4 BluePrint Phase Project Proposal Foundational Strategies: Processes Project Approval Process / IT Governance NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

32. Foundational StrategiesProcesses Project & Portfolio Management Process ProjectApprovalProcess / ITGovernance 2. 1. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

33. Foundational StrategiesProcesses Project & Portfolio Management Process ProjectApprovalProcess / ITGovernance 2. 1. Purchasing / Managed Acquisition Process 3. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

34. Foundational Strategies: Processes Purchasing / Managed Acquisition Process 4 1 2 3 Define Requirements Purchasing/IS Contracts Form Acquisition Team Refine & Prioritize Requirements 5 6 7 8 Issue the RFP Determine Contractual Relationship Obtain Management Approval Develop the Contract/ SOW 9 10 11 12 Conduct Bidders Conference Evaluate Potential Suppliers Down Select Vendors Manage the Contract / Vendor NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

35. Foundational StrategiesProcesses Project & Portfolio Management Process ProjectApprovalProcess / ITGovernance 2. 1. Purchasing / Managed Acquisition Process 3. Vendor Management 4. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

36. Foundational Strategies: Processes Vendor Management Philosophy • Treat vendors with respect • Maintain business-only relationship • Expect vendors to do their own homework • Establish balanced scorecard for key relationships • GOAL is maximum value and spirit of relationship • KEY is guilt-free flexibility NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

37. Foundational StrategiesProcesses Project & Portfolio Management Process ProjectApprovalProcess / ITGovernance 2. 1. Purchasing / Managed Acquisition Process Contract Compliance 3. Vendor Management 5. 4. NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

38. Foundational Strategies: Tools • Contract Lifecycle Management:Enterprise Contract Management System NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

39. Transformation Implications Relationship Management ProjectManagement Contract Management NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

40. Enterprise Deployment NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

41. Enterprise Contract Management Deployment • 1997 Windows Based Contract Manager • 2000 Conversion to Web Based ASP • 2000 Legacy Contract Conversion and Data Migration • 2003 Deployment for Deal Manager • 1997-2004 Active Participation in User Group and Steering Committees NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

42. Enterprise Contract Management Deployment TMS IS TMS Procurement Toyota Financial Services North American Parts Organization Toyota Motor Manufacturing North America NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

43. Achievements in Excellence • Facilitation of Best Practices in Vendor / Contract Management across IS • Better Warranties • Better Licensing and Services Terms • Better Pricing • Invoice to Contract Audit • Eliminated Unauthorized Vendor Contact • Cost Avoidance / Savings > $14MM in 5 Yrs NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process

44. Question/Answers NCMA 4th Annual Commercial Contract Management Conference Tools, Jewels, and Rules: Leveraging the Contract Management Process