Robert Moffat, our SVP Global Head of Solutions, sat down with industry leading procurement experts Al Williams and Melanie Temkin, along with our very own MSP Lead David Spence, to discuss the planning and implementation of a Managed Service Program (MSP). Melanie and Al have decades of experience in the industry and, with Hays, have built one of the largest and most complex MSPs in the US market.

Recently, we published an article outlining the first half of that session. In it, Melanie and Al provided insights and advice on planning a Managed Service Program. In this iteration, we outline how you can ensure that you and your team get recognized for the competitive advantage that an MSP can provide.

On Delivering a Competitive Advantage

Robert: “Do you think [an MSP] can genuinely give you a competitive advantage against your competition?”

Al: “Yes, the entire procurement organization has an opportunity to do that. Part of our role is to help the organization grow. So yes, we absolutely believe that it’s a competitive advantage and organizations that don’t figure that out will be left behind.”

Leadership is always looking for any way to get a leg up on the competition. You should prepare to be asked what competitive advantage you can drive through procurement and your supply chain in general.

Al: “It’s all but guaranteed that your leadership is thinking about it.” Knowing exactly what that advantage is and how you can measure it is important in determining the recognition for the success it will bring you and your organization.

On Expectations

Speed is the bare minimum expected from an MSP.

Al: “There is pressure to perform faster and more effectively. Every role we don’t fill is likely a lost revenue opportunity.”

However, staffing isn’t the only demand - in many cases, stakeholders could be asking for support in preparing pricing models for bidding or sourcing a unique set of requirements.

Dave: “Our ability to put the right person in the right seat is table stakes. Pace and agility are hugely important.”

Drawing from the previous article, it’s important to make sure you are aligned with the organization strategy to ensure you are working towards the same goals. Set these expectations at the beginning to avoid any confusion about outcomes.

On Benefits Delivered

Melanie: “’Time-to-fill’ and ‘time-to-start’ are two of our key metrics.”

When 95% of your population are revenue generators, minimizing the time between a position opening and a candidate starting can be an important indicator of success. If your revenue generators can start 15% earlier, you can start making money 15% earlier.

When looking to measure the ROI of your MSP, keep in mind that this can be concrete evidence that you have delivered a competitive advantage to the organization.

Al: “In reality, it’s speed-to-fill and speed-to-revenue that precede the cost saving component. They play balanced with cost savings.”

Measuring success is not solely the cost of the MSP compared to cost savings. It’s the combined difference on the moneymaking end of the spectrum that you need to track to get the full picture of advantage. Set this baseline and keep track of your progress against it.

On Demonstrating Benefit

Dave: “Where we’ve managed to win over the hiring communities is around the insights into data and what that data says is actually happening in the marketplace.”

Insight into data is one of the more important aspects of an MSP. We provide a holistic view of market data which can inform you on making the most efficient and cost-effective decisions. If you need a particular skill, where is the best place to hire that person? You may want a worker in one location, but we could have data that says you could hire better talent or for better value in another location.

Melanie: “That was one of the reasons we went out to MSP in the program. We wanted to obtain that market data, research, and analytics to help us when our clients have challenges.”

Melanie and Al needed to know if they had talent in those locations and what the market was dictating from a cost perspective. Their goal was to properly educate their stakeholders on what is and isn’t feasible. The insight into those metrics was critical in delivering a competitive advantage over competitors.

Dave: “It’s the intelligence we can give to the business.”

On Being Recognized

Robert: “Is it recognized internally that the program delivers a positive outcome.”

Al: “I definitely think it is.”

Melanie: “Highlighting our team being leveraged and treated as an advisor for our key clients actually impacts revenue for the company.”

It takes the flip side of how we normally look at supporting the business function. It’s not from being a sideline supporting unit, it’s having an influence and direct impact on the actual business model.

On How to be Recognized

The goal is to promote and support the view that the MSP and its owners are a driver or revenue not just a cost center.

Robert: “Do you have any advice on how to be recognized for the competitive advantage your MSP brings?”

Al: “You must clarify what your value proposition is and why the program should add value for your organization.”

It’s important to start building recognition from the beginning. You must know what the program will provide, how it will provide it, and why stakeholders should care.

Al: “You need to own the narrative that includes those examples when we talk about driving top-line growth versus expecting leaders to come to that conclusion themselves.”

Melanie: “Get good PR for your program. Provide information and data.”

It’s critical to ensure you have a peer understanding of the impact of what you’re doing. To get recognition, you must provide data and explain exactly how that helps the organization. Consistently update stakeholders with information and draw positive metrics to justify the program like time-to-hire, cost savings, revenue gained, etc. Be consistent when using the data to make sure everyone understands the story you are creating and how that leads to success.

Al: “Recognize that stakeholders have their own pressure. You need to walk in their shoes and understand their challenges.”

Be proactive. Anything that you can provide to make stakeholder lives easier will get you recognized.

Learn more about MSPs and how they can help you deliver a competitive advantage to your organization.

AUTHOR

Robert Moffat
Global and Americas Head of Solutions, Enterprise Solutions at Hays
With a 25 year track record of designing, implementing and managing talent services Robert has a wealth of knowledge on the challenges and opportunities facing employers in maintaining a competitive advantage in talent acquisition, engagement and retention.

As Global and Americas Head of Solutions Robert is part of the global leadership team responsible for innovation and product development. Having lived and worked for Hays in Europe, Asia Pacific and the Americas he is able to bring a diverse range of thought and experience to the new challenges in the world or work.

He has a passion for new ideas, markets and opportunities and has been instrumental in a number of Hays’ recent global projects including the roll out of a Global Operating Method, Supplier Engagement Strategy, the evolution of our direct sourcing approach and a quick deploy RPO service for start-up and high growth companies.