Join us in Tampa, FL, for an FAO event that will help your business take the next steps forward in F&A sourcing, as John Sununu Takes the Spotlight.
 
By Peggy Cope
 
 
U.S. Secretary of State Hillary Clinton was in India in July, and many of that country’s executives and officials had just one question on their minds: What will the effects of current U.S. policy on outsourcing have on their business, and on the relationship between American corporations and Indian companies that are receiving a wealth of business from them?
 
Although Secretary Clinton promised ongoing talks “with the objective of facilitating smoother trade in high technology between the two economies,” fears of protectionism still percolate in the backs of many minds. President Barack Obama has been widely quoted for his quips on the tax benefits to be enjoyed by companies that create jobs in Buffalo, NY, instead of Bangalore, India under American tax codes to be implemented. Secretary Clinton also has been cited in a number of outlets as saying: “Outsourcing is a concern for many communities and businesses in my country; so, how we handle that is something that we’re very focused on doing in a way that doesn’t disrupt the great flow of trade and services that go between our countries.”
 
How do we handle this tug of war between policy and unfettered cost-saving sourcing decisions?
 
This question will be high on the agenda at the FAO Summit in Tampa on Oct. 20 and 21, 2009. Headlining at the event will be former Senator from New Hampshire John Sununu, who is now the lead Republican on the Congressional Oversight Panel for TARP. Sununu will be available for a private briefing for executives who want to discuss free trade, offshoring, and the role of finance, and he will speak during lunch on the first full day of the conference program.
 
Called both a philosopher and the smartest man in the Senate, Sununu followed his father’s footsteps into political office and served as the youngest member of the United States Senate. Before entering public service, he worked in the then-emerging high-tech field as an engineer and a small-businessman. He later served on Senate committees such as Commerce, Finance, Banking, and Foreign Relations. Drawing from his engineering and business background, Sununu is well positioned to talk about the economic landscape, and financial and regulatory reform, the science of and the economic impact of climate change, and technological change. He currently is writing a report on regulatory reform, mortgage issuance, and insurance regulation. 
 
During his term in the Senate, Sununu passed legislation to reform financial giants Fannie Mae and Freddie Mac that changed the regulatory structure. He negotiated the Internet tax ban and fought for the addition of civil liberties into the Patriot Act.
 
At the conference, Sununu will address of the most pressing issues for finance officers in the current economic climate, offering clarity, confidence, and an insider’s perspective. He will provide an in-depth look at the changing economic environment, discuss the role of the government and financial institutions, and outline America’s economic future. As a former member of the Senate Committees on Finance and Banking, he will share his work on reforming Fannie Mae and Freddie Mac and the new regulatory structure affecting the financial services market.
 
Speaking from his experience as an engineer and a small-businessman, Sununu will give his perspective on the energy crisis and the effects of climate change. He has a keen understanding of the inter-workings of new technologies and their global financial implications, and can talk about issues surrounding renewable energy, traditional fossil fuels, and the science and economies of climate change.
 
Last but by no means least, Sununu will examine the kind of technological changes we can expect to see in the next 10 years and how these developments might affect commerce and the economic landscape. Here he will draw on his mechanical engineering background and his service on the Senate Finance Committee to discuss the financial and policy implications of technological growth and the steps necessary to facilitate continued innovation and adaptation.
 
Other keynote presentations will be given by such luminaries as Morris Owens, head of financial shared services for Coca-Cola Enterprises and a seasoned executive leading the transformation of CCE’s F&A; Sean Kracklauer, president of the Hackett Group, a global strategic advisory firm and leader in best practice benchmarking for shared services, offshoring, and outsourcing; and Chris McGoff, CEO of The Clearing and one of the world’s foremost authorities on leading large-scale change for public companies and governments.
 
 Kicking off the first full day of the event will be a panel discussion including executives from Coca-Cola Enterprises (for more information on CCE’s FAO engagement, see pp. 26 to 29 of this issue), Heineken and other corporations discussing how they built the business case for F&A outsourcing, how to engage stakeholders, and how to measure success from beginning to end. They will address how to show specific stakeholders what’s in it for them; how to choose from among captive, outsourced, and hybrid models when it comes to service distribution; and what to put into your transition plan.
 
The Hackett Group is known for helping organizations achieve world-class efficiency and effectiveness, and Sean Kracklauer, president of Hackett Advisory Services and Research, will address attendees on the topic of the World Class Cost Advantage.

 
Unprecedented economic volatility and competitive pressure are forcing companies to fundamentally redefine their service delivery strategies for general and administrative functions. The financial rewards in G&A cost reductions—up to $234 million for a typical Global 1000 company—are substantial for agile companies that respond quickly to changing conditions. The economic crisis threatens the very survival of underperforming companies, while world-class companies enjoy new opportunities for even greater success. Learn how world-class companies achieve industry-leading cost, quality, and cycle time performance levels, new 2009 performance metrics for G&A functions, and the level of cost savings that could be redirected to other areas of the business.
 
AMR Research guru Phil Fersht will help attendees learn to go beyond the basics with a moderated panel based on new research findings from AMR Research.

 
FAO is still firmly at the top of the agenda for businesses seeking quick cost-efficiencies—from quick savings through labor arbitrage, maturing global delivery models, and a highly competitive array of ambitious providers eager to take on your business. But while great savings are possible, many buyers are not organized enough internally to realize them fully. Many rush their evaluation processes, eager to finalize a contract. This session will discuss the strategies that CFOs, heads of shared services and other operations leaders need to get an F&A BPO initiative off to a strong start.

 
TPI’s Scott Furlong will address the need for speed in a session entitled “Accelerated Approaches to F&A Outsourcing.”
 
FAO deals are getting done faster. As the market matures (among both service providers and clients) greater confidence is developing around the pathway to a commercial FAO relationship and the alignment on a vision for transformed F&A operations. With most, if not all, of the significant providers having similar capabilities, very similar cost structures (their delivery centers are located in the same country and city pairs), and capacity drivers—there is the opportunity to move quickly while securing commitment to a future vision of F&A operations.
 
 The current market conditions allow for an accelerated approach to F&A outsourcing that can significantly reduce cycle time, cost, and level of effort., In this session, learn the myths and realities surrounding the traditional approaches (staff augmentation and structured competitive evaluation) and current market pathways towards strong commercial agreements with speed. In addition, learn the key steps and success factors to accelerate your company’s decision making with respect to F&A outsourcing. 
 
A panel discussion will examine the choice of distribution model, whether hybrid, captive, or globally sourced. As distribution models evolve, it’s becoming more common to have a hybrid model where some functions are outsourced to a low-cost geography, some are elsewhere in a captive shared services environment, while still others are kept in-house. At the same time, shared services is seeing new life as a model of choice. Which model will work best for your organization? Is there a transition plan that can get you the benefits of all these different models? This session will help you answer these questions.
 
Procurement outsourcing will be on the agenda in a session geared toward this fast-growing segment of BPO. In this case study, participants will learn how to best outsource this function in conjunction with FAO and which providers excel in this area.
 
Wrapping up the conference will be Chris McGoff, with his presentation “The Journey Within.” McGoff will talk about what every leadership team must know to drive meaningful outcomes in large-scale transformational programs.
 
This is an event not to be missed. Visit the web site to register today, at http://www.fao summit.com/na/.