Vendor consolidation with a top 10 pharma company

The new model had to give the client the strategic control required to inform their decision-making process while also addressing several risks and inefficiencies, including:

• Lack of standardisation due to decentralised resourcing functions and variability in local delivery models and procedures
• Locally managed resourcing strategy resulted in role description inconsistencies, resource forecasting challenges, and varying ramp up/down abilities to meet pipeline demands
• High administrative burden placed on the client’s operational and business management staff
• Budget and invoicing inconsistencies and inefficiencies
• High, variable costs with US-based contractors due to billing by the hour, hours billed exceeding the hours projected for tasks, and unpredictable contractor absences
• Co-employment risks and compliance issues

The ICON and client leadership team implemented a workforce transformation model in order to preserve business continuity. This was guided by the partnership’s Global Rules of Engagement to serve as a comprehensive guide for operational integration as well as a central location for the partnership’s overarching principles, governance structure, communications pathways and metrics.

Pre-implementation planning:
Upon award, ICON and the client developed a governance structure facilitating transparency, risk management, and issue resolution at the lowest level to minimise impact.

Due to the complex scope, ICON and client created a responsibility matrix for each activity supported by a robust Communication Plan that detailed role-level reporting requirements, issue resolution, and escalation pathways. Per our risk and issue management and mitigation methodology, we implemented a Risk Register to track risk/issue probability, impact, and response strategies and actions as well as growth opportunities at the global, regional, and country level. ICON developed a robust resourcing and retention strategy including, the creation of a client-dedicated Talent Acquisition team.

Partnership evolution:
The overall aim was to simplify management of personnel by harmonising business processes in a collaborative partnership and to oversee the partnership using a strong, multi-tiered (global/ regional/local) governance model to ensure effective communications and operations. During this process, ICON and our sponsor encountered several challenges and learning opportunities, which included:

• Creation of consistent global operating model with knowledge of and respect for local labor restrictions to mitigate co-employment risk.
• Management of change averse culture by providing regular education on program intricacies via worldwide regional implementation meetings.
• Development of a risk management methodology with implementation of a risk register and a focus on proactivity, risk prevention, and reduction of impact. 

With 80% of workforce as contractors, there was a significant risk of loss of business continuity due to non-conversion. To reduce risk, ICON implemented the following:

• Establishment of exception process to manage unforeseen salary expectations.
• Rapid planned replacement process with adequate handover period to minimise business disruption.
• Extension of vendor contracts to assure smooth transition.
• Collaboration between ICON and sponsor to ensure continual status updates and alignment on areas of focus.
• Flexibility on start dates to accommodate vendor and individual preferences.
• Flexibility on working location to meet individual preferences.