Case Studies

Microsoft: Prioritized global contract management, optimized its commercial structure and ability to better manage contract risks

“Richard’s ability to learn our Contract & Commercial management strategy across 47 countries, benchmark it across the industry and help us prioritize our roadmap made a big difference. Beyond a crisper execution plan, Richard helped sharpen our influence of senior leadership and key stakeholders and focus on business benefits of a strong CCM function. This is a huge testament to what an experienced, adaptable, intuitive problem solver he is.”    Bernard Dakar, Microsoft

Hurdle:  Developing a strategy to influence all stakeholders to understand the need for prioritizing global contract & commercial management – especially as it relates to Microsoft’s transformation and the growing Digital Transformation business that brings along more cross-company deals that bundle services and products together into solutions that must be negotiated cohesively.

Approach: Richard Sandler assessed Microsoft’s contract architecture, processes and support engine to identify the most strategic areas and develop a plan for prioritizing the steps to refine our CCM system across various business units and 47 countries. The key to his success was understanding the nature and culture of Microsoft and learning how our business operates to define what challenges truly mattered and which did not. His adaptability made the engagement contextual, and thus, relatable by all stakeholders. Richard was instrumental in getting buy-in from key stakeholders, by helping us reinforce WHY they have to care and invest in a strong, CCM function to enable more good business.

Results:

Richard’s vast experience, and ability to validate that Microsoft Services was on the right CCM path and paved the way for more senior leadership engagement and increased level of investment available to us. Stakeholders understand the importance of that investment to prevent pitfalls and positively impact the bottom line. We are doubling down on new capabilities, including global service contracting office as a support engine.

Chief Negotiator in a Large Outsourcing Contract

Value, Value, Value. Richard Sandler’s leadership skills, honesty, and integrity paired with decades of experience in sourcing and negotiating provides meaningful value to our organization.

Richard was the chief negotiator in a large outsourcing contract for our company. He participated in a negotiation team, working with an offsite legal arm, multiple vendors and a multitude of IT personnel with specialized skills – from the C-level to the technical programmer. His ability to communicate across all levels of our corporation brought about an end-to-end operations contract with fair value for both parties.

Richard works with us on an ongoing basis to enhance and evolve value realization from the contract in place.  We also call on him to optimize various other contracts and mentor our sourcing team.

It doesn’t stop at his expertise. He has built an incredible strong network of talent  – from high-level consultants to temporary off-shore technical expertise to fill any gap imaginable in today’s digital world.

DVP, Strategic Sourcing

Contractual Impasse between a Very Large Global Financial and Global IT Consulting Firm

“Richard Sandler’s infectious, positive attitude and deep understanding of business operations, financial analysis, client/supplier relationship dynamics, contracts and negotiating positions results in a solution – every time – in the most challenging commercial situations.”  VP, Financial Services Account Management, Global IT Consulting Firm

Issue: Applications Outsourcing contract between a very large global financial corporation and global IT Consulting firm. Contract was predicated on a significant price drop after 12 months, on the basis of the consulting firm moving 70% of labor to India. By month nine, very little progress had been made in moving the labor. At month 13, with a majority of the labor cost still in the U.S., the “as is” contract would have been upside down in pricing.

Insurance companies manage risk very well. Moving 70% of labor to India posed too much risk to the insurance giant at that juncture – the proper training was not in place. Add to that a very high attrition rate in the U.S. at the time – laying off a great number of employees and transferring the work to India was not the right thing to do.

Contractual Impasse? – Bring in Richard Sandler, the ultimate negotiator.   

Bridge Contract – Richard developed a two-prong program that:

1. Identified and detailed what criteria the insurance corporation would need to feel comfortable transferring the workloads to India. A scorecard with a wide range of measurements was established. If those targets were met i.e., a high level of confidence in the skills training and the movement of workloads to India was done against a repeatable process –  minimal risk would be proven.   
2. Included an addendum to the contract that created a bridge, providing the time needed for the IT consultant to build trust and confidence through measurement. Richard negotiated an onshore rate for the IT Consultancy firm that would continue until both parties were satisfied that the timing was right to move to off-shore labor rates. Richard masterfully negotiated the contract so that the IT consultant was protected and the client was assured optimal productivity and minimal risk.  In the end, the contract was MORE profitable for the IT Consulting firm than was previously expected.