COO Best Practices for Outsourcing 2013
 

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In this webinar, ExecSense examines the most up-to-date best practices regarding how leading COOs are handling outsourcing and what they are planning from an outsourcing standpoint for 2013. Take the ...

In this webinar, ExecSense examines the most up-to-date best practices regarding how leading COOs are handling outsourcing and what they are planning from an outsourcing standpoint for 2013. Take the 60 minutes to view this webinar (on your computer, mobile phone, iPad or printed out) to understand new tips, techniques and sourcing strategies COOs are planning on using in the year ahead.

• Everything you need to know in 60 minutes to insure you and your team are utilizing the most up-to-date best practices when outsourcing.

• New trends you need to watch for when dealing with (or considering) outsourcing vendors for your company in the next year, including preventing information leaks, maintaining professional know-how and infrastructure, best policies for due diligence checks on the vendor, new terms and red flags on outsourcing agreements, and more

• The 10 questions most asked by COOs (and their CEOs) with respect to outsourcing for 2013, and how to avoid the most common mistakes that could hinder the benefits of outsourcing (e.g. failure to adequately track performance)

• Case studies of current outsourcing plans from leading COOs, how they are updating their plans for the year ahead, and their best tips and techniques you can immediately implement

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COO Best Practices for Outsourcing 2013 Presentation Transcript

  • 1. Best Practices for Outsourcing - - How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi / Bruno GuicardiMaterial in this seminar is for reference purposes only. This seminar is sold with the understanding that neither any of the authors nor the publisher are engaged in rendering legal,accounting, investment, medical or any other professional service directly through this seminar. Neither the publisher nor the authors assume any liability for any errors or omissions, or forhow this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any othertype of advice, please personally consult the appropriate professional.
  • 2. Slide 2 About the Webinar Speakers Leonardo Mattiazzi Bruno Guicardi VP, International Business COO Ci&T, www.ciandt.com Ci&T, www.ciandt.com Led Ci&Ts expansion into international Led the company to constantly innovate markets in technology and processes Responsible for differentiating the Responsible for keeping competitive edge company in the fierce global competition in all company’s lines of business Bringing value to customers through Almost 20 year of accumulated innovation knowledge in the outsourcing industry Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 3. Slide 3 Overview• Business dependency on IT has been constantly increasing• IT Outsourcing productivity gains have been focused solely on labor arbitrage• IT innovation impacts top line and bottom line - far more than IT labor arbitrage Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 4. Slide 4 What to Know• Traditional IT Outsourcing doesnt create innovation•Different Business processes require different outsourcingmodels• Engagement model may reward wrong behaviour Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 5. Slide 5 What to Know Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 6. Slide 6 What to Know Traditional IT Outsourcing doesnt bring innovation• Gartner: "Lack of IT-enabled innovation is one of the biggestcomplaints in outsourcing deals; yet Gartner research shows that thissituation most often results from the buyer contracting for a staticenvironment and the vendor agreeing to deliver it".• Forrester: "According to a 2011 Forrester Survey, 41% of outsourcingclients cited lack of innovation as the biggest challenge with theirexisting IT services relationships". Why?? Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 7. Slide 7 What to Know Source: Dealing with Darwin, Geoffrey Moore Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 8. Slide 8 What to Know Challenges for IT Challenges for IT• Volatile business • Standardizationrequirements • Consolidation• Responsiveness • Unity costand adaptability productivity• Time-to-market (labor arbitrage) Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 9. Slide 9 What to Know Beware what your engagement model rewards: • Predictability vs Adaptability • Efficiency vs Efficacy • Reactive vs Proactive (Working on the Solution Space vs the Problem Space) • Conflict vs Collaboration • Hiding problems as long as possible vs Bringing problems to the surface Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 10. Slide 10 Tips and Strategies • Define whats core and whats context • Adjust outsourcing engagement models to reward what is appropriate Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 11. Slide 11 What to Do• Define whats core and whats context • Get consensus about it across senior management • Start with the definition of „value‟ from the customer perspective • Explicit your differentiators • Map your processes and identify the ones your differentiators largely rely on • Tools: Hoshin Kanri and Value Stream Mapping Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 12. Slide 12 What to Do• Adjust engagement model for each one: Core Context  Adaptability  Predictability  Efficacy  Efficiency  Working on the Problem Space  Working on the Solution Space (Proactive) (Reactive)  Collaboration-based relationship  Contract-based relationship  New, unknown problems (to be  Well-known solutions (usually brought to the surface) hiding real problems) Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 13. Slide 13 What to Do• Adjust „core‟ engagement model for Adaptability • Establish success criteria based on business outcomes NOT on specifications • Direct communication matter more than specs • Make change hassle free • Define short cycles of delivery • Postpone decisions as much as possible • Re-assess assumptions and re-prioritize scope regularly If you tell people where to go, but not how to get there, youll be amazed at the results. George S. Patton Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 14. Slide 14 What to Do• Adjust „core‟ engagement model for Efficacy • Beware what you measure • Change the IT scorecard to share business outcomes (ex: P&G, AB-InBev) • The „cloud‟ and the migration of IT „responsibilities‟ Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 15. Slide 15 What to Do• Adjust „core‟ engagement model for Proactivity • Involve early • Truly share the business problem / goal • Allow IT (including external providers) to work on the Problem Space • Ask for alternative solutions - dont be too prescriptive! • Reward contributions - share risks and rewards! Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 16. Slide 16 What to Do• Adjust „core‟ engagement model for Collaboration • Shorten communication paths between technical and biz teams • Review structure if needed (multidisciplinary team over distributed and specialized teams) • Establish rites for direct and constant communication (ex: daily standup meetings) • avoid “proxies” and “multi-layers” of communication • Create an environment where shared goals prevail • Share risks/rewards Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 17. Slide 17 What to Do• Expect (and allow!) problems to be brought to thesurface • See problems as learning opportunities - not headaches • Be available to discuss / resolve problems together • The real issues may only be revealed along the way • Establish a problem-solving framework and mentality • A3s, PDCA, Andon, Visual Management as examples Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 18. Slide 18 Do’s and Don’ts You have to have a good combination of ‘carrotsand sticks’ to get successful change: „Sticks‟ „Carrots‟ Encourage business areas to  Share the „laurels of victory‟ withexperiment with the cloud (w/o IT IT (redesign rewarding systems)involvement)  Rotate and promote people Bring in a more innovative/agile interchangeably between biz & IToutsourcing provider to “rock theboat” Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 19. Slide 19 Case Study: BPO in ‘core’?? Insurance Company• About to hire a full BPO for Acquisition, Underwriting and Claimsprocessing back-office• Challenged about its ability to evolve its „core‟ processes under BPO Changed strategy to go with: Agile outsourcer BPO •Health Acquisition & •Health Claims Processing Underwriting •Auto Underwriting and • Auto Acquisition Claims Processing Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 20. Slide 20Case Study: Lifetime Customers• Situation: global leader in contact lenses missing opportunity toacquire customers for lifetime• If right lenses are not available at retailers, client will trycompetitors• Solution: spending a day with the sales rep• Simple Mobile Ordering app (iPad/Android) with great UX design,reducing each visit from 1.5 hour to 15 min (6x gain)• There were no "requirements gathering": proactive IT "Its not often that IT gets this type of reaction from a Sales Team"Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 21. Slide 21Case Study: Sales Force Automation • Where to focus: IT helping you sell more, or squeezing IT costs to deliver? • Compare your cost of sales and your cost of IT: where there are more opportunities for gains? • How to leverage a robust platform, while creating SAP Based Sales Force Automation on iPad or Android devices great user experience? Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 22. Slide 22 Case Study: report for what?? Leader in mobile content distribution in Japan  Asked for a set of sales reports for its senior management  After „problem space‟ discussions, project was redefined to provide insights in user consumption trends  „Solution‟ has completely changed to collect huge amount of data from real transactions and use prediction algorithms to generate new marketing campaigns, with intense use of Big Data and Cloud technology Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 23. Slide 23 Conclusions#1: IT can bring productivity gains and operationalcost reductions through innovation, not only throughIT labor arbitrage#2: IT engagement model must be adjusted accordingto "Core" or "Context" initiatives#3: For "Core" initiatives, IT goals must be businessgoals Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 24. Slide 24 Supplemental Documents• Gartner research, Contracting for Innovation in Outsourcing, 2010-2011, ID Number: G00209597• Forrester research, Co-creating with your Service Partners, Chris Andrews, 2012• Dealing with Darwin, Geoffrey A. Moore, 2005 Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 25. Contact the SpeakersLeonardo Mattiazzi Bruno Guicardi•Email: leonardo@ciandt.com •Email: bruno@ciandt.com•Phone: +1 (610) 482-4810 •Phone: +1 (610) 482-4810•Website: www.ciandt.com •Website: www.ciandt.com•Twitter: @lmattiazzi •Twitter: @brunogn•LinkedIn: www.linkedin.com/in/lmattiazzi •LinkedIn: www.linkedin.com/in/bguicardiBest Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.
  • 26. Additional Documents• Please email the finished PowerPoint and any other sample documents to katie.bryson@execsense.com at least three business days before your scheduled Webinar presentation.• If the files are too large to send through your email server, let us know and you can use our large-file email service at www.yousendit.com.
  • 27. Subscribe Now Subscribe to the Worlds Largest Collection of Digital KnowledgeStay Current With Webinars, eBooks, eDocs & Podcasts on Every Hot Topic,New Technology and Important Trend That Impacts Your Specific Profession Throughout the Year http://www.execsense.com/subscribe750
  • 28. Slide 28 Moderator Questions#1 – Using the "Core" vs "Context" concept, shouldnt we do the "Core" in-house and outsource only what is "Context"?#2 – My outsourcer has an R&D center focused on my industry segment, why can‟t I take advantage of that?#3 – Best Practices for Outsourcing -- How Leading COOs Are Gaining Workforce Productivity While Cutting Costs Leonardo Mattiazzi & Bruno Guicardi www.ExecSense.com © ExecSense, Inc.