Amidst a flurry of political and social controversy, the Olympic Games are underway, and for the international firms responsible for staffing the Sochi Games, they hope it’s all downhill from here.

Sochi’s three official staffing Suppliers: Adecco Group, Kelly Services, and Russian firm Exect Business have put three years of work into building the Contingent Workforce for the Olympic Games and the sheer numbers are staggering. The total number of temporary workers for the games may top 150,000 people, and that isn’t counting the roughly 25,000 volunteers that will be lending a hand to make sure the games run smoothly. Among those 150,000 workers 65,000 are skilled workers. These skilled workers were culled from a worldwide recruiting search, offering the opportunity for the organizing committee of the games the chance to hand pick expertise from the very best the world has to offer, as well as the chance for those skilled workers to show off their talents in front of an audience like no other. On paper it’s the perfect trade off, but somewhere along the way things went off the rails. Sochi-2014-Company-Olympics

Vancouver temporary worker Johnnie Balfour’s exposing blog posts and statements about the treatment of himself and his team at the games has been well documented. (Go here to catch up) Even an entire twitter feed, @SochiProblems emerged to document all the issues journalists and athletes alike had encountered upon first arriving in Sochi. Littering news feeds around the world with pictures of brown water and unfinished construction. While these images weren’t exactly the image that the staff and Olympic Committee wished to have us see, the big picture moment of truth for the staffing agencies of the games going forward may not be boiled down to pictures or politics. It may boil down to the larger issues of transparency and control.

For those in the business of the Contingent Workforce this is an issue of risk debated and managed daily, as the decision to either outsource or direct source (hire from within) is weighted against the factors of cost, availability of resources (skills), and time. As the world’s eyes turn to Sochi for the games, administrative/payroll miscues and a lack of communication is not the way to put our (those in the contingent workforce solutions business) best foot forward. In this case, while a pool of extremely talented and eager workers were recruited and gathered for the games, it seems as though when they got there, the communication regarding their income was (at least according to Balfour) left open to interpretation . There is nothing that will turn an IC (independent Contractor) off faster than the notion that they’re not getting paid, and in Balfour’s case, seemed to be the last straw.

As an Employer and a Business you only get one chance to make a first impression with your Contingent Workforce and Independent Contractors. Making sure your T’s are crossed and your I’s are dotted is an absolute must in an industry where word travels fast.  If your goal is to recruit and retain top talent, miscues are simply unacceptable. In the case of Balfour, the simple and affordable option of an IC Compliance and Payroll service could have been made available to figure out payment options and schedules before he even left for Sochi, and in the process, saved the staffing agencies responsible for 150,000 workers the potential firestorm of being made to look as a willing participant in the headache inducing and livelihood threatening payroll practices of the Sochi Games.

There is truly no replacement for transparency and efficiency in this business and the sheer size and publicity of this only goes to remind us that even a small administrative miscue or oversight can become a giant problem.    

If all goes according to plan when the games close on February 23rd, viewers will hopefully be inundated with images of the athletes’ fists in triumph, their tears in defeat, and memorable moments of sportsmanship and diplomacy. Not pictures of brown water, unfinished construction, and the supposed mismanagement of temporary workers. If the stumbles in the weeks leading up to the event are any indication, the staffing agencies may be the ones in the front row cheering the loudest for the athletes to steal back the spotlight.

At a recent petroleum-based group conference for OFS Portal in Houston, one of the major themes I touched upon was about Supplier Networks and their future.  As part of a discussion shared by a fellow analysts, Andrew Bartels, was the discussion around supplier network convergence and the need for improved interoperability.  In other words,  is […]

Aberdeen Group announces the 2011 Chief Procurement Officer Summit: The CPO as Innovator, Collaborator, and Strategist, November 15 – 16 at the Seaport Hotel in Boston. Over the past six years Aberdeen Group’s annual Chief Procurement Officer Summit has established itself as the preeminent symposium for global procurement executives to learn, network, evaluate and develop […]

The Chief Procurement Officer (CPO) role has developed into a wide range of functions including overseeing strategic supplier relationships externally to managing process and technology projects internally.Moreover, to demonstrate the leadership of running an effective procurement organization, the CPO today  requires a unique set of skills that can drive innovation, promote collaboration and execute on corporate strategy

As a part of the Global Supply Management practice here at Aberdeen and in pursuit of understanding this role in 2011, I am in process of producing the latest CPO Agenda benchmark report entitled – Dynamic Procurement Management: CPO as Innovator, Collaborator and Strategist.   The CPO Agenda benchmark report is part of a long tradition and was born right here at the AberdeenGroup.  It is therefore a pleasure and with great anticipation for me to share the latest version of our survey to you via our Aberdeen blog

Considering this long tradition, this year we are looking to explore two of the key areas that are critical in defining the role of CPO – Staffing (internally) and Suppliers (externally).  I am also interested to identify what motivates someone to become a CPO.  For instance, what got them to that role? What is the average tenure of a CPO?  Is this the direction it takes their ultimate career or is it really a stepping stone to a greater role? 

So if you are CPO or Senior Director in Procurement or Sourcing, I encourage you to participate in this brief survey. Answering your survey will allow you to personally apply your experiences and discover results based on the benchmark report coming end of July.  

Speaking of traditions, consider joining us at the CPO Summit November 15 – 16, 2011 in Boston, MA (or as my colleagues like to say, “Bawston” ).  Over the past six years Aberdeen Group’s annual Chief Procurement Officer Summit has established itself as the preeminent symposium for global procurement.  So come to learn, network, evaluate and develop a clear vision of procurement’s evolving role in an intimate and engaging environment.  I hope you can make it.

No, I’m not wasting Forrester’s blog space for yet more coverage of the royal engagement. I think Ariba’s proposed acquisition of Quadrem, that it announced today, is much more interesting.

Forrester has been predicting, and advocating, consolidation in the procure-to-pay market for a while:

“Once consolidation starts, the natural imperative of scale in the technology business will transform the market into one in which a few large, successful, interoperating networks enable buyers to reach all their suppliers, however small or physically remote.” Enterprises Should Push Supplier Networks To Deliver Interoperability, July 2009.

While I’m unqualified to comment on whose investors do better from the $150m purchase price for a company with about $50m revenue, I do believe the merger is good news for both sets of customers and suppliers. Firstly, Ariba reinforces its place as one of the four or five large supplier networks that will eventually dominate the market. Its customers now get access to a wider stable of suppliers. Quadrem originated as a marketplace for mining companies, so it is particularly strong in MRO categories and in natural-resource-rich regions such as Africa and Latin America where Ariba is under-represented.

Secondly, Quadrem customers will, in time, be able to upgrade to a superior platform (Quadrem is currently based on an old version of SAP's SRM module) without having to worry about switching their suppliers to a different service. They’ll get a much large stable, and a better product roadmap. Plus they’ll get out from under the Sword of Damocles that now hangs solely over Hubwoo customers, namely SAP deciding to fill the supplier network gap in its SRM portfolio.

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