More Key Terms
Linking the Archer initiative to this will help calculate the savings ratio by engagement stage.
What is the PW?
This baseline typically comes from a company executive that has aproved the budget or project
What is ELT approval?
When this is High, the likelihood of achieving the savings is low
What is risk?
This is achieved when vendor provides any 'Free services'
What is Avoidance?
The amount saved when AIG terminates a $120k year-long deal after 6 months of paying the monthly fee. There is a $10k early termination fee.
What is $50k?
This direct's favorite team is the Yankees.
Who is Andrew?
One of 2 fields that were made required in 2018 that help align the savings to the operating structure of AIG.
What is either Business Unit or Corporate Function?
In an RFx, this baseline is the result of the first round of submissions
What is the lowest qualifying bid?
The formula for this is the average of the max and min of the savings initiative
What is the forecast?
This is the type of savings from year 2 of a deal that replaces the $5M steady state for a technology project with new technology coasting only $4M/year.
What is neither?
3 bids from the RFP were $1M, $1.2M and $1.5M. After further negotiations, AIG signed a deal for $800k realizing this much savings.
What is $200k?
Roger Federer is this direct's favorite athlete.
Who is Kathy?
This number encompasses the entirety of the savings from an approved business case on a multi-year deal.
What is Term Savings?
This baseline is tied directly to a P&L and leads to a cost reduction
What is a budget approval?
This is the highest estimate of what the savings will be for the initiative.
What is the Max savings?
What savings can be claimed when a duplicate invoice was sent by the vendor, and paid by AIG. GS&PS team found the error & vendor credited the amount with next month's billing
What is cost avoidance?
This is the savings achieved when AIG renews 1000 software licenses. Last year they cost $100 each, this year they cost $80.
What is $20k?
This direct's favorite team is the Mets
Who is Brian?
This is how we can check the 'reviewer comments' in case an initiative is pushed back to IL3 from IL4.
What is "under PMG review" or "notes related to save"?
This baseline can be calculated from historic PO's, or SOW's, or invoices paid to a vendor
What is actual spend?
This field is used to convey action items to the review team.
What are "Next Steps"?
This type of savings stems from a Vendor proposal for $500k. ELT approval is $300K. Post negotiation the final contract was executed for $250K.
What is both?
Post vendor audit, AIG had an obligation to pay $14M in arrears. As final settlement- go forward agreement of $2M was done and eliminated all arrear obligations, leading to this much savings.
What is$12M?
This direct likes any team other than the NY Rangers.
Who is Amanda?
In a multi-year deal, this is a savings amount realized in excess of the savings reprted in the previous year.
What is incremental savings?
This amount would be the baseline for 2019, if in 2018 we had a $500k baseline, and experienced a $200k cost reduction?.
What is $300k?
The GS&PS employee should do this when the final documentation does not match the previously entered data in Archer for savings amount
What is update the initiative?
What type of savings are achieved when Year 1 of a contract is for $100k. Year 2 is scheduled for $125k. Year 2 was actually negotiated down to $75k.
What is both?
Janitorial services have a baseline of $3M in 2018. What are the savings if, in 2019, the rate was contractually obligated at $4M, and AIG and the vendor negotiated $2.5M to avoid a bid
What is $1M avoidance, $500k reduction (or$1.5M)?
This direct's daughter plays softball.
Who is Jeannine?