Purposeful Contracting: Increasing Shareholder Value via Alignment to 3 Important Verizon Initiatives Better Matters Playing to Win Shareholder Value • Purposeful Purposeful Positioning Positioning • Playing to Win • Better Matters Purposeful Contracting Strategy Execution Results Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution 1 of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Purposeful Contracting Playing to Win . . . Executive Overview Program Objective (Winning Aspiration) Make Verizon’s Legal organization the world's best and most innovative legal department as measured by industry leading internal metrics (e.g., contract lead times, content simplification, efficient use of resources/personnel, cost savings, business outcomes, compliance) and external metrics (e.g., customer satisfaction (net promotor score, customer loyalty index), awards, recognition). Vision, Purpose and Goals (Winning Aspiration) • Vision: Use industry best practices in problem-solving and process simplification to simplify our legal content and processes to deliver breakthrough, transformative solutions to the business and our customers.. • Purpose: We make it easy to do business. • Goals: Reduce contract lead time by 50%. Target Areas & Project Scope (Where We Will Play) • Initially, VES Wireline Legal organization. A single Program with multiple Projects/Solutions. • Over time, expanded across all of Verizon Legal. How Will We Know We Succeeded (How We Will Win) • Contract lead time and customer satisfaction scores are a some of the key metrics we will use in our project plan to help us discern if our efforts are making a positive impact on customers • Growth (e.g., Revenue Growth and Enablement) and Speed (e.g., Time to Contract) Risks (What Core Capabilities Do We Need) • Not developing the Core Capabilities in time to deliver on our Winning Aspirations is a key risk. • Core Capabilities: Deep Customer Understanding Aligned with our Project Plan 2
Verizon Purposeful Contracting Purpose We make it easy to do business. Principles Simply Reliably For Me Practice Fits Different Customer Sizes Make it simple to understand Reliably Simpler Contracting Fits Different Geographies Make it simple to work with Reliably Faster Contracting Make it simple to contract Reliably Better Contracting Fits Different Services VZ Contracting VZ Contracting VZ Contracting
Purposeful Contracting Addressing an Ecosystem of Complexity • Service Descriptions mix multiple terms • Different versions of Services • Not all Services are posted online Product Complexity Matrixed, global org IT Systems limitations Organizational IT/Process Complexity Complexity Purposeful Contracting • Public Sector & Indirect not addressed • Medium business Customer Geographic • Operations in 70+ countries Complexity Complexity • Global Integration Deals • Multiple Master templates • Service availability affects contracting 4
Global Converged into One Global Master Contract for Online and Offline Other Contracts in Online Use . . . . Master Online Terms (13 Pages) SSA (13 Security & VSA Pages) (9 Pages) Professional U.S. Services WWSA (23+ Pages) Multiple International 1 Global Master Contract (6 Pages) 5
Overview • Global • Global Master Services Terms Guide 1 2 All Verizon Contracting Documentation 4 3 • Global • Global SLA Financial Guide Guide Decouple . . . Big Problems are Smaller Problems Stuck Together 6
Global Services Guide • Service • Geographic Description Specific Terms All Global Services (e.g., regional Terms variations) 2 • Supplemental • Service Specific Terms Schedule Terms (e.g., (e.g., different unique SLAs) LOL) (LIMIT) Identify and Segment Core Service-related Terms 7
Global Financial Guide • Global • Global Charges Rates/Price List (e.g., Paper All Global Financial Terms Invoice) 3 • TBD, if any • Administrative Fees Identify and Segment Core Financial Terms 8
Global Master Terms • Commercial • Financial All Global Master Terms Terms Terms 1 • Enforceability • Remedies for Terms Non- Performance Terms Identify and Prioritize Core Master Terms 9
Service Descriptions – How do we get there? Sort Straighten Shine Standardize Step 1: Step 2: Step 3: Step 4: Reassemble Categorize Prioritize Decide • Separate and • Make the • Re-organize using a • Disassemble Prioritize Terms standard structure Service Terms decision to: based on a small • All of our • Remove set of criteria: customer- • Relocate • Service facing • Revise Description documents • SLAs • Non-Contractual • Financial • Geographic Availability • Supplemental Terms 10
Why are we doing this? Accelerate Improve Increase Revenue & Customer Customer Reduce Costs Satisfaction Adoption • Speed up the negotiation • Simplify and reduce complexity • Provide customers single process of Contracts and Service globally consistent legal Descriptions to address terms and conditions • Reduce and manage customer survey feedback • Create better overall customization (where • Reduce potential conflicting needed) business and legal outcomes language between MSA and • Reduce costs Product Service Terms All of the above are based heavily on customer feedback 1 1
What changes to expect? Shorter and Simpler Customer-Focused No Surprises • Consistent and • Talk human • Describe the service and predictable benefits in customer • Consistent language and • Logical grouping of terms friendly terms definitions • Same formatting across • Clearly define what • Eliminate redundancy all legal terms Verizon will deliver and • Remove unnecessary critical Customer detail responsibilities • Reduce negotiation time • Focus on customer and corresponding business outcomes vs. attorney time and, Verizon’s risk mitigation therefore, reduce costs concerns for both Verizon and our customers 12
Target : 25% cycle time reduction. Baseline cycle Contract Negotiation Cycle Time Reduce 30 days by Jun’ 17 time: 121 days. Purposeful Contracting 10 300 9 Metric: Financial: Milestones: 250 8 7 No of DLM deals 200 Tower / MBB Purchase – Diana Preis 6 5 150 Program Manager Jagan Gunalan 4 100 3 Business Owner W. Jones/J. Veilleux 2 50 1 Exec Champion Vandana Venkatesh 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct VES Contracting is complicated for enterprise customers, No Of Deals 3 2 10 2 1 3 1 1 2 2 increasing negotiation time. Customers also must sign extra contract documents when they want products on the Cycle Time (Days) 274 131 142 192 42 46 124 39 17 26 VRD platform, as well as the Legacy platform, exposing the complexities of VES Internal platforms. Delivery of project solutions Purposeful contracting is accelerating contracting by started since June 2016 simplifying contract language and structure, automating the generation of fully-negotiable contract terms, and Key Accomplishments (Last 30 Days) creating a single Hybrid contract that supports products from both platforms in a single agreement. Simplified service terms for 9 services published on Dec 30th 23 contract pages eliminated (from 71 to 48) Financials ( Hard & Soft benefits ) Upcoming Milestones (Next 60 Days) 2017 Soft Benefits $ 12.38M • • Release of MVP1 for RTB SOF Reduce 5-7 days in cycle time • 20+ Simplified services to be delivered Goals • Manual Hybrid/Cross-Platform Process Baseline Target Metric Milestones to be completed to close this project by 2Q 2017 Stage 4 cycle time 121 days 91 days 17 remaining services to be simplified. March 2017 Simplify Master terms - Consolidate the content of 20 different Master Service Agreement (MSA) versions March 2017 Risks/Delays into one set of global general terms . Add/Change Form deployed June 2017 Aggressive simplification schedule, subject to delays. Restructured MSA (Create Master, Service and Financial schedule url’s ) and Start MSA Restructure Q2 2017 development. 13
Recommend
More recommend
