How to
Get the Best from Outsourcing
by: Martin Haworth
There's a great little article ('Business Lifeforms')
on the back pages of the UK's leading management magazine, Management
Today each month. It's a spoof (at least I think it is!) about some
fictitious key player in a fictitious organisation. For January,
it's about Ken, who's a 'Facilities Manager'.
Now Ken has seen it all and truly worked his way up from the bottom
to the top. Until, that is, a couple of years ago when new MBA-armed
suits took over and decide to slash Ken's department (until now,
running very, very smoothly under Ken's watchful eye) and Ken himself.
Of course it all goes pear-shaped and the top dog has to come grovelling
back to Ken, offer him loads of money and a big car, basically to
ensure that the toilets aren't 'backing up' any more!
This is in direct contrast to Michael Gerber, in his fascinating
book The E-Myth Revisited. There he talks about working 'on' the
business and 'in' the business, making it clear that if you do too
much of the grindstone not-my-expertise stuff yourself, you lose
track of what you are really good at, and what you went into business
for.
In a past life, I too experienced challenging outsourcing. At one
time I had a great little local cleaner who I trusted (he even opened
the store up for me - hmmm, that was a long time ago!). He did an
excellent job and was on hand for emergencies. Then a new senior
director decided to consolidate and outsource, for 'economy and
consistency'. It was cheap - but the service was awful. Each time
I got a new 'centrally sourced' cleaning company, they came with
great intentions for the first 3 months and then dribbled off (with
our money!) until it became unsustainable and another 'excellent
contractor' came along.
The moment of truth for me, was when the director for one of these
contractors, came along for the first time in a brand new £60K
Merc (and it's a few years ago now). Then I knew where my money
would be going. I went through 6 contractors in 5 years, even though
my hands were tied by 'Head Office' contracts!
To solve this problem? There needs to be strong leadership at the
start. Very clear standards required from outside contractors and
severe penalties (yes, stop paying them even!) for under achievement.
Corporate central contracts agreed there, but implemented and managed
locally, leave a lot of space for waste.
And yes, in a small business, don't even think of doing the bookkeeping
yourself as soon as you can afford not to - do what you do best,
value it and get on with creating the business you love, not like
struggling Sarah in the book. But, get someone who you trust and
who will deliver. Chris Barrow, of Million Dollar Coaching Practice
fame, suggests that the very first thing anyone going into a consulting
business should do, is get a PA. And that modern day evolution,
a VA (virtual assistant) has made this a real, low cost possibility
for many.
Moral of the story?
If you are going to outsource, especially if your business is big
enough, where it's not only the fashion, but it can have economic
and logistic value, take the following steps:-
Find the best on the market, not the cheapest.
Set the standards yourself, and don't take theirs.
Be very clear on expectations and outcomes if standards aren't met.
Keep in very business-like, however much you like/know/are related
to them.
Have clear timescales for regular review.
Have a named and senior contact in the organisation for whom there
will be pain if they lose the contract.
Keep contract length manageable.
If things start going wrong tackle them early, before too much money
is wasted.
If 'Head Office' agrees the contract, don't chase your own tail
over non-delivery - get someone from there down as soon as there
is a problem - you have enough to do.
Don't get involved in the problems any local operatives might have
- refer them back.
Martin Haworth is a Business and Management
Coach. He works worldwide, mainly by phone, with small business
owners, managers and corporate leaders. He has hundreds of hints,
tips and ideas at his website, http://www.coaching-businesses-to-success.com.
...helping you, to help your people, to help your business grow... |
