CWS 3.0: June 18, 2014

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Key elements help control your program, define its future

Planning for the unexpected is an important element of the contingent workforce (CW) program management practice. There are some key elements that program managers need to control in order to define their future and how it will play out. Most of these program control elements should be included in contracts with suppliers because a number of control levers have to be in place in order to manage an unplanned surprise.

Here are a few key program control elements that should be addressed.

Assignment. This program control element clarifies what occurs in the event of a change in control of a solution partner. For example, if a company is acquired, this allows for transfer of the contractor to that new entity; on the other hand, it also allows the parties to a contract to state specifically who may not assume the contract. For example, you may not wish an arch competitor’s solution provider to buy your MSP, in which case you may choose to terminate the contract for cause.

Third-party materials/transition assistance. This program control element is useful for program managers and VMS technology providers as it outlines how any resident technology will be transferred in the event of MSP solution contract termination. For example, this contract clause would allow the program owner to keep a resident VMS should they not hold the contract directly with the technology company and under what terms/pricing. The clause can also specify transition support requirements (for a fee) for the exiting MSP solution provider. This element reduces some of the transition cost when changing MSP partners or taking CW program management in house.

Data ownership. While the ownership of data often is very clearly identified in most programs as belonging to the client, data ownership program control elements are important because they serve to define and clarify exactly what types of data are owned. Additionally, it can describe the format and timely availability of/access to the program data. 

Statutory cost changes. This program control element is meant to be fair in its application but keep the barriers to changes significant enough to make undue or undeserved price increases difficult to implement. Statutory and other price increases/decreases (such as changes to SUTA or FUTA rates) will invariably emerge and governing these change events with a structured evaluation process controls costs and delivers fair consequences for all the parties involved.

No suspension. This element limits the performing party from stopping work due to a non-material dispute — a critical concern in SOW contracts where time to completion is a key performance issue. Often in the event of a non-material dispute, a solution provider may threaten to stop working until resolution. This clause allows for such a stoppage only in the event of a particular event, such as non-payment.

Issue resolution/escalation process. This element can be useful in the future transition of a program. First and foremost, it addresses how issues are to be resolved and what the consequences for failing to fix them are. These issues may be bucketed into critical and non-critical areas. Additionally, some contracts prescribe a specific escalation process that includes timeframes, tracking and segments executive personnel involvement via criticality of the issue that needs resolution.

Contingent workforce programs are quickly evolving management practices whose future forms and structures are changing rapidly as the innovative use of the contingent workforce marches indelibly forward. This requires CW program management to be in control and be able to define how best to embrace this inevitable evolution.