INNOVATION - THE "ILLUSIVE" GOAL IN OUTSOURCING AND SHARED SERVICES

By Bill Frech, Co-Founder, CandidAdvisors

When you ask an executive to describe what they would consider innovation, you’ll get answers that are all over the map; from standardization of support service processes, implementing best in class processes, to implementing leading edge processes that differentiate them with customers.

Given this range of answers how does one not only define innovation but also realize when they have achieved it?

A number of outsourcing contracts I’ve worked on have defined innovation as:

 “XX% savings in contract cost every year after “steady state” is reached.”

But is that really innovation or just cost reduction?

The bottom line is innovation means different things to each person and is heavily dependent upon your starting point. 

Ideally, contracts should be structured to assure both parties consider innovation and discuss and adjust on a regular basis.

Your view of innovation will change and evolve over time as you implement improvement.  Therefore it is essential that innovation be clearly defined as part of a contract such as adding gain sharing to incent both parties to develop and implement innovative solutions.

3 Critical Questions to Simplifying Complexity

By Bill Frech

How many different outsourcing contracts does your company have?

Most large companies find themselves with multiple contracts in the IT and BPO space, often with different providers. In fact according to Julia Kotlarsky, an Associate Professor at the Warwick Business School, most businesses are throwing billions of dollars at IT outsourcing contracts despite having little understanding of what they spend or get for their money.

This multitude of contracts has resulted in more management complexity and in some cases more complexity for the end-user. Frequently, separate organizations or different groups within the same organization manage these contracts.

3 critical questions:

1) Are contracts still providing value to the company?
2) Are contracts still in support of the company goals?
3) Are the end-users of these contracts getting what they need to run their business on a daily basis or are shadow organizations and solutions arising?

This white-paper "Outsourcing has become an Evolution to Complexity, Increased Cost and Unknown Value" will discuss how companies have evolved to this situation and what they need to do to put mechanisms in place to ensure the outsourcing agreements support the long-term business goals.

What the cool kids are doing with technology and film

For more information, Chris Cairn's work is here: http://www.partizan.com/partizan/musicvideos/?chris_cairns

see also the Neurosonics Audiomedical Laboratory at http://www.neurosonicsaudiomedical.com/ & Faris' Blog at http://farisyakob.typepad.com/blog/

Creating and Sustaining High Performance Work Teams with CandidAdvisors

CandidAdvisors is pleased to partner with and offer the Belbin Team Roles Workshop

Whether you are building a new team, want to refresh an existing team, or are looking to create a common focus between two groups that desire to collaborate more effectively, CandidAdvisors can help. Using a unique and behaviorally anchored approach, CandidAdvisors offers a one to two day workshop, depending on the size of the team. The key elements are:

• Defining high performance in terms of outcomes and behavior
• Using the Belbin Self Perception Inventory, completed on line, with individual feedback and a collective assessment and aggregated team profile
• Showing the relationship between team work and heightened group creativity
• Understanding the need for a sound team process as well as agreeing what roles individual team members can play
• Exploring the options for individual team member contributions
• Having a framework to discuss and measure what total team effectiveness means

This is a facilitated process where the team itself sets its standards in the context of what the team is mandated to deliver, its measures and agrees the means for self correction moving forward. Part of the process includes insight into what each team member potentially brings to the working of the team and what each team member can reasonably expect from other members, including ongoing feedback and support.

Please contact info@candidadvisors.com for information on how you can bring the Belbin Self Perception Inventory and Belbin Team Roles Workshop into your organization, and read more about our Partners Here.

Is finding “real” independent advice in outsourcing a challenge?

On CandidAdvisors - by Co-Founding Partner Steve Jandrell

There are many players in the world of outsourcing, from those who help companies select outsourcing vendors, to those who deliver outsourcing services. The one thing all these players have in common is that they need companies to outsource to be able to sustain and grow their own businesses.

But what happens if outsourcing a set of functions or processes is not the right answer from a strategic business plan perspective?

Whether it is on shore, near shore or off shore a key driver (some might say the driver!) in the decision to outsource is long term operating cost reduction.

While cost reduction is a vital aspect of successful management, what about creativity, innovation, knowledge management and outstanding levels of customer service? Then, if the transition to a new operating model is more focused on a date to achieve cost benefits as quickly as possible - without necessarily building in to the transition plan a people and organization perspective that encourages buy in and plans for long term performance and remedies - what needs to happen?

With many companies who have made the decision to outsource significant parts of their operations, after a two to four year arrangement with an outsourcing vendor or vendors reporting high levels of dissatisfaction, how is that recovered?

The potential for any provider of services in the world of outsourcing to have a conflict of interest is arguably obvious. They have people on their payrolls to deliver services. They incent their people to win business and as much as possible. Making the right balanced decision to outsource in the first place, taking into account all factors and not just cost, to transition in an appropriate way and to manage vendors to maintain high levels of performance over time can be a real challenge.

The role of a truly independent adviser at any stage of the outsourcing / insourcing process is clear. But where do business people go to get that independent advice? With that in mind, CandidAdvisors LLC was founded by two experienced and senior practitioners. As Founders, both Bill and I have major firm experience, and have worked internationally.

We have successful track records of providing candid and results focused business advice to top management and to those tasked with implementing changes to operating models. Using our experience of business transformation, outsourcing / insourcing, shared services and organizational change management, we apply this experience through the principal of “best advice” with no hidden agendas. Our solutions are developed based solely on client issues and options and how those solutions fit with the strategic intent of our clients.