HR & Outsourcing workshop by Alexander Crepin

Outsourcing & HRaHR making outsourcing a successWorkshop for HR managersBy Alexander Crépin Crépin Consult Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaThe concept Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing is:the transfer of internal business processes &capabilities to an external specialized serviceproviderMake or Buy Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaThe basic idea:Service providers will do what currently is done by “own” employees• at a better level of performance / quality• for the same or a lower price• control of costs, avoiding fixed capital investment costs• allowing a focus on core businessOften primarily a reaction to a problem,not a well chosen strategy Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaAlternative reasons for outsourcing:• risk avoidance• availability of scarce skills• improving time to market• keeping up with cutting-edge technology• business or process transformation• creating value for the organization and its customers• building partnerships Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaTowers of outsourcing• Logistics & distribution• Administration• Information Technology• Human Resources• Customer Relationship Management• R&D• Production / Manufacturing• Catering• …… Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing nothing newOutsourcing started when individuals began to develop specialized skillsMost organizations never totally self-sufficient & outsource functions for whichthey have no competency internally1990s outsourcing became a business strategyOrganizations began to focus more on cost-saving measures & started to outsource thefunctions necessary to run a company but not related specifically to the core business2012 Business Process Outsourcing has come of age Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaTrends & developments Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing expected to growProjected outsourcing industry globalrevenues $480 billion in 2016from $370 billion in 2011 Dubai Outsource Zone (DOZ) & Frost & SullivanPressure on the public sector to make cost reductions has created ahealthy pipeline for many outsourcing suppliers Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Many companies re-modeled the drug R&D operations New outsourcing strategies & types of services are being developed in almost every stage of the drug R&D & manufacturing process Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Randy Mott, General Motors new CIO, plans to cut the quantum of the companys IT outsourcing from 90% to 10% in the next three years. Mott believes that outsourced IT cannot deliver the creative, business-changing ideas that GM needs and cannot do it fast enough!! Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaShifting towards a next EraThe corporation as we know it, which is now120 years old, is not likely to survive the next25 years. Legally and financially, yes, but notstructurally & economicallyMany ways of making money today won‟t be possibleanymore tomorrow! Peter Drucker Business 2.0 Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaSuccessful companies: “customer-obsessed”Empowered customers are disrupting every industry &get involved & becoming Pro-sumersFocus on activities key to customersAchieving a customer-centered business modelrequires a new mindset & new approaches to BPO! Forrester Market Research

Organizational structures are changing New business models are emerging S T A Prosumers K Eholders

2.0 workingConnected Collaboration Anywhere Anytime Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Tomorrow’s Enterprise - Customer engaged & involved - Wire-archy & networked, relationally based - ICT enabled & people driven, new technologies lower barriers for new entrants - Globally integrated & locally / community present & participating - Genuine, open / transparent, fuzzy boundaries - Collaborative, looking for alliances, crowd sourcing options etc. - Competitive + innovative beyond customer imagination - Disruptive by nature, flexible & adaptive - Continuously learning & improving for operational excellence - Social responsible & sustainable, socially & ecologically sensitive - Engaging globally (top) talents & stakeholders - Diverse, a multi cultural & multi generations workforce - Servant leadership, citizenship & governance - Self managing professionals Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa1990s outsourcing became a business strategy Improved technology allowing to collaborate globally2012 Outsourcing has come of age! Strategic partnerships to create value for customers & stakeholders Creating more, better, faster effective results A never-ending story of continual improvements Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaFrom: Business Process Outsourcing BPOTo: Business Process Alliances BPABPA : to create customer value it addresses processes & technology and the people who run themBPO, “better, faster, cheaper” projects have their place in keeping the business trim butthey are usually not the transformative initiatives that help businesses to adapt to thedynamics of the present time of global competition & customer power Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR manager& outsourcing Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing, why HR ?1. Assets and/or knowledge and/or employees to be transferred to third party2. Restructuring / Transformation organization3. “Managing” change Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR today’s roles are diverse Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input on• Vision• Strategy• Implementation / Transition• Execution Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing Vision• How to be in business the coming decade?• How will the organization look like in the coming decade?• What new competencies to prosper the coming decade?• What are the likely scenarios to face when outsourcing?• Why could outsourcing strengthen the talent base?• BPO or BPA• Why outsource anyhow?• …….. Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaWhy outsource anyhow?“Is it in the organization‟s best interests to continueto (or start to) perform an activity itself using ownpeople, process expertise & technology or to „buy‟the activity from an “external” service provider, apotential business partner in the marketplace?” Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing Strategy• How could outsourcing support the mission / long term goals?• How to ensure that outsourcing initiatives will become a success?• How to build a culture in which outsourcing alliance partners are collaborating for creating customer value?• How mature are the outsourcing processes?• How to ensure industrial relations backing?• Defining goals, setting objectives• SWOT• ……. Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Outsourcing (process) maturity levels 1. Initial Processes are characterised as ad hoc, and occasionally even chaotic. Few processes are defined, and success depends on individual effort and heroics 2. Repeatable Basic project management processes are established to track cost, schedule & functionality. The necessary process discipline is in place to repeat earlier successes 3. Defined The outsourced process activities are documented, standardised, and integrated into all processes for the organisation. Basic governance is in place 4. Managed Detailed measures of the processes and quality are collected. Both are quantitatively understood, reported and controlled 5. Optimising Continuous process improvement is enabled by quantitative feedback from the process & best practices 6. Innovating In alliance looking for new models & processes to create customer value, piloting innovative ideas & technologies Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing Implementation• Outsourcing specs, especially HR attention areas, HR due diligence, defining Service Level Agreement (SLA) ingredients & KPI‟s• Define & document workflow, process, procedure (ISO descriptions), cultural characteristics & technology requirements• Transfer of Undertakings (Protection of Employment) Regulations (TUPE)• Work council (& union) agreement negotiating• How much outsourcing experience? Which maturity level?• Do we have project managers?• Pilot required, Yes or No?• Align initiatives, adjust management styles Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing Implementation (2)• Co-selecting outsourcing partners?• How much time available?• Make HR transition plan. Ensure realistic planning & milestones• Ensure a good communications (plan)• Ensure ownership of processes clear accountability of all involved• Training (project) managers & employees in outsourcing collaboration• On-the-job training & expediting the transfer of institutional knowledge to the outsourcing team• Goodbye meetings for employees transferring to outsourcing partner• ……. Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing ImplementationIndividual: moving specific positions out of the organizationFunctional: having specialized knowledge & responsibilitiesProcess: how products or services actually flow through the organization Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing implementationHR Success factor 1:Communication!!!Open communication with affected groups to build trust & commitment Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing & employee emotions Integration Too much emotions Emotions Shock / denial Acceptance Anger / Blaming Negotiating Start Depression Time Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaHR provides input onOutsourcing Execution• Monitoring & reporting, check HR evaluation criteria• Establishing an outsource relationship that has sufficient flexibility to deal with (business) fluctuations• Continuous improvement, creating value discussions, “lessons learned” roundtable, providing incentives• Training & learning• Coach relationship manager(s)• Industrial relations Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaLessons learned• Holistic thinking• Strong monitoring & analytical skills• Industrial Relations• Collaboration• Adaptability within boundaries• Integration of outsourced and native processes• Prioritizing value over price• Specificity• Technological advancement Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaDon’t outsource what you don’t control!A commonly made mistake is to outsource a process you don‟t yet fullyoversee nor control yourself. This is the ideal recipe for disaster.If you don’t know exactly how things should bedone, don’t start outsourcing it! Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaShared mindset & expectations• Business objectives & intentions must be clear & shared• Internal collaboration across business units & functions is essential• Standard procedures must be put in place for improving performance & resolving disputes Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaTailor made or one-size-fits-all?“Look for an outsourcing service providerwith willingness & ability to offer a specificset of culturally appropriate services ratherthan a standard engagement model” Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaCost is always a factor, but ……without a transparent infrastructureenabling to monitor KPI‟s, it is hardto meet business goals ! Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaOutsourcing is too often seen as a cost-cutting measureThat doesn‟t necessarily mean that it was more expensive than hiring,training and retaining in-house talent ! Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaSuccessful executionWhen the outsourced process is completely set up &operationally leading to an agile business situationIt has becomebusiness as usual Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaSuccessful outsourcingA people matter!Collaboration to create customer valueHR playing a key role in establishing thecollaboration fundaments Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRa Questions ? Crépin Consult, Alexander Crépin for inspiration, innovation & results

Outsourcing & HRaThank you for being interested inHR & Outsourcing Alexander Crépin + 31 653 641 905 info@crepinconsult.nl www.crepinconsult.nl (in Dutch only)

HR & Outsourcing workshop by Alexander Crepin

by Alexander Crépin on Aug 05, 2012

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HR & Outsourcing workshop by Alexander Crepin Presentation Transcript