It’s our business to understand outsourcing and when it makes sense to consider executing and implementing business initiatives.
When outsourcing, two oft-overlooked but common problems – biggies that can be avoided – are handing a process or project over without providing any guidance, and internally not planning for when the relationship will end. Both of these discounted areas cause outsourced projects to fail, and as business leaders on both sides of outsourcing relationships, we can take responsibility to address shared issues when beginning our outsourcing relationships. In this #VBBRadio program, Jess Dewell talks with Alex Danzberger about the business of outsourcing.
Starting The Conversation:
- What are the most common overlooked steps when deciding to outsource?
- Where do partnerships fail?
- When does an outsourcing relationship end?
Host: Jess Dewell
Co-host: Alex Danzberger
What You Will Hear:
There are two types of outsourcing: project and service contracts.
Five pitfalls of outsourcing.
What expectations there are and how to manage them.
The paradox within outsourcing.
Internal frustrations that may come from being excluded from innovation.
Internal review – to know the motive, purpose, and advantages.
More understanding of what is being outsourced – the risk is known.
Recognize there are elements of planning top down and bottom up.
What to do when a mistake happens in an outsourced partnership.
The competition of taking the time to do something well (and right) with the feeling of instant gratification
Trust, understanding, and managing expectations.
The role of emotions.
Why it (is not) BOLD to have clear expectations when outsourcing.
Notable and Quotable:
Alex Danzberger: The principle benefit of outsourcing is to give operating flexibility.
Alex Danzberger: Outsourced partners work within the strict definitions of the contract, they do not think outside the box.
Jess Dewell: What is their motivation, what is our motivation, and are there gaps between the two?
Alex Danzberger: What is our goal in doing this [business initiative]
Alex Danzberger: Typically you are not going to ask an outsource provider to do something that you don’t already need to be done.
Jess Dewell: How do you hold the need to take time and the expectation of instant gratification?
Alex Danzberger: There is always something that comes up, so share what outcomes are expected.
Jess Dewell: Where a service starts and ends and being straight-up with what can be done well and profitably.
Alex Danzberger: Sometimes outsource providers forget they are in a partnership, and that partnership requires both sides being candid and truthful with each other.
Tags: boundaries, relationships, contracts, expectations, outsource, resource, strategy, risk, project management, project management, strait forward, clarity, honesty, trust, credibility