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FORGING
SUCCESSFUL
PARTNERSHIPS
WITH AN
OUTSOURCING
provider
Advice & Anecdotes from the C-Suite

Susan DeFazio & Dr Anne Dibley
Kelly OCG and the Henley Centre for Customer Management
at Henley Business School undertook a year-long study to identify
the repeatable characteristics of successful outsource provider
partnerships. They reviewed and analyzed the most respected
publications on the topic of service agreements, and conducted
in-depth interviews with over a dozen senior executives from
outsourcing providers and client companies. The findings are
crystallized here in a 15-minute primer for senior executives.
01
success factor




                 Strong Governance

                 Plans change. Outsourcing agreements               and memorialize those ‘mechanisms’ in the             The timing and composition of meetings should
                 can’t account for every possible wrinkle in        agreement. You may decide to have a single            be spelled out in the service agreement—no
                 an evolving, dynamic relationship. Strong          point of contact to delegate tasks, or to institute   matter how plodding the exercise may seem.
                 governance agreements compensate for               a customized ‘heat map’ that documents on-            The structure and purpose of meetings should
                 uncertainty and define how the partnership         going tasks, unresolved issues, and individuals       be reviewed constantly so they don’t become
                 will ‘flex’ over time.                             responsible.                                          stale. Consider atypical formats from time to
                                                                                                                          time, such as a ‘blue sky’ discussion, to foster
                 Create a mirrored governance structure             Demand a clearly mapped ‘relationship                 innovative, fresh thinking.
                 between the provider and client, from senior       infrastructure’ from the outsourcing provider.
                 management on down.                                                                                      Disseminate the right management
                                                                    The outsource provider should define and map
                                                                                                                          information to support the governance.
                 You should know who’s ‘facing off’ when            clear roles across their global organization,
                 problems surface. Mirroring begins with the        repeated by country and by discipline. By             Sharing clear, relevant, real-time information
                 CEOs of both organizations, who should meet        standardizing roles, the OS is better positioned      is critical to drive action. Key performance
                 at least bi-annually to ensure the governance      to scale the partnership to multiple countries        indicators (KPI) should be reviewed at every
                 structure is effective at delivering the results   and business units.                                   meeting—not as lengthy ‘back-patting’
                 both parties expect. The ladder of mirrored                                                              overviews to show how all is proceeding to
                 relationships should be clearly documented in      Respect the critical importance of meetings           plan, but a tightly focused look at exceptions.
                 the agreement, from C-level all the way through    as the ‘tailwind’ in a successful partnership.        As one executive put it, “The MI should be used
                 operations. A tightly woven partnership solves                                                           to drive out the low and high points, and think
                                                                    In our interviews, the subject of meetings
                 problems more efficiently than the alternative.                                                          about the future.”
                                                                    (e.g. how often, who comes, what follows)

                 Define roles clearly, particularly who ‘owns’      was a point of extensive discussion and

                 what issues in your governance framework,          thoughtfulness. Consistent, well-run meetings—

                 then set up accountability for marking             from weekly progress meetings to executive-

                 progress and resolving problems.                   level performance review meetings—were
                                                                    characterized again and again as the element of
                 Institute a clear system for following up on       traction in highly complex relationships.
                 action points from project review meetings—

                                                                                                                                                                             3
02
success factor




                 measuring value & success

                 Measure success based on supporting                Gut-check KPIs regularly.                              Client satisfaction is among the most
                 growth rather than driving down costs.                                                                    important measurements to capture.
                                                                    The OS and client should examine in-place
                 Explains one executive, “Some clients think        metrics regularly to determine if they are still       No matter how stunning your KPIs, the client
                 they’re asking for cost reduction and value, but   relevant. To move beyond a short-term focus            (both managers and end-users) must ‘feel’
                 are really only focusing on costs. They need       on costs, be explicit about the value being            this success to make it so. Says a procurement
                 to look at the ‘total cost of performance.’ For    delivered. Says an OS executive, “[We] might           executive, “We, as procurement, can say, ‘this
                 example, Client Performance + Provider A gives     be running twice the number of applications            is a really successful programme, we have ‘x’
                 you Performance X, but Client Performance +        with half the people. If you don’t [define] this, in   amount of savings’ etc, but in essence, the
                 Provider B might give you Performance Y.”          two or three years time, your client is going to       programme will not be successful, as long as it
                                                                    say, ‘you aren’t doing enough.’”                       is not in the minds of our business stakeholders.
                 An outstanding outsourcing provider can help
                 clients raise the bar, setting new performance     The concept of value can change, almost                One executive reports two simple ways to
                 goals based on growth and access to talent.        imperceptibly, over time. Says one OS                  measure whether client satisfaction is high:
                                                                    executive, “You need a quarterly process to            “First, does the client say ‘yes’ when you want
                                                                    recognise and define how value is changing.            them to act as a reference for a new piece of
                                                                    At a senior level, every meeting you have with         business? Second, is the client prepared to put
                                                                    the client, put on one sheet of A4 paper – ‘this       their name or brand on a case study?”
                                                                    is what we’ve done for the organisation; this is
                                                                    what we’ve achieved”



                 “To get approval for a video case study is the ‘holy grail.’ if your client is prepared
                 to have a video of him on your website saying you’re all good to work with...
                 In my opinion, it doesn’t get any better than that.”
                 —outsourcing provider




                                                                                                                                                                               4
03
success factor




                 Openness, transparency,
                 honesty & responsiveness
                 Don’t forget to recognize the value the        Expect a provider to propose strategic,
                 outsource provider is providing, repeatedly.   sophisticated solutions, based on their
                                                                expertise—and offer plenty of opportunities
                 Treat the provider as you would one of your
                                                                for them to do so.
                 own executives or managers to promote
                 greater openness and transparency. Consider    As one provider explained, it’s “not just getting
                 an awards program, team building ‘day-aways’   the ball back over the net,” but dealing with
                 or other special gatherings. These types of    root causes and the long-term. The solution
                 events warm up the relationship, signaling     to a particular problem may not be a simple,
                 respect and commitment.                        bottom-line solution, but require a more
                                                                nuanced analysis.




                 “Each institution holds dear the long-standing relationship and understanding
                 they have [with an outsourcing provider]. Most companies would point to
                 one or two suppliers where (sic) you know that, come hell or high water, that
                 supplier is going to be there for you.”
                 —client organization




                                                                                                                    5
04
success factor




                 MUTUAL TRUST AND CONFIDENCE

                 Trust and confidence—assuming it’s well-            questions and analyze difficult problems.          Why does building trust matter? If the OS team
                 placed—begets a more productive relationship.       Says one client company executive, “The            feels hung out to dry, says one provider, “You
                 Those are qualities that grow out of a              outsource provider must have the ability to        get the ‘dregs’ on that account. On the provider
                 competent, long-term relationship, yet there are    connect and understand the business, and           side, people can manage themselves out of
                 actionable steps to speed the process.              look at the overall value it can bring to the      accounts. The client doesn’t necessarily realise
                                                                     organisation. They need to understand the          it’s getting the B, C and D teams.”
                 Share problems early and plainly—and ask            business pressures we’re facing, and how they
                 for this type of openness in the agreement.         can help us meet our goals.”                       Aspire to reach a state of mutual,
                                                                                                                        institutionalised trust.
                 Trust and confidence emerge not in heady
                                                                     Share sensitive information early.
                 periods of success, but in the midst of challenge                                                      Institutionalised trust is characterised by low
                 and stress. One OS leader explains, “Honesty is     A true measure of mutual trust is the number       attrition and extensive sharing of financial
                 telling the truth when you’re asked a question;     of ‘unofficial conversations’ the relationship     information. Says one provider executive,
                 transparency is telling the truth, plus showing     manager on the client side is prepared to have     “You mention the name of the client, and
                 concerns, gaps, negatives, and being open           with his counterpart on the provider side. For     everyone responds instantly. [...] Each institution
                 when you can’t do something.                        example, a client may tell the provider about      holds dear the long-standing relationship
                                                                     an organisational change before it has been        and understanding that they have. [...] Most
                 Choose your key contacts—particularly               officially announced to help the provider look     companies would point to one or two suppliers
                 the OS-based ‘client manager’—wisely.               good to within his own organisation: “They’re      where you know that, come hell or high water,
                 This individual should be chosen as a steward       telling you because they trust you that it won’t   that supplier is going to be there for you”
                 of the relationship. Aside from having excellent    go any further, [...] giving you a ‘heads up’ on
                 relationship skills, he or she should also be a     something that may impact you, rather than
                 shrewd businessperson, able to ask probing          leaving you on the back foot.”




                                                                                                                                                                              6
05
success factor




                 Delivering what you promise

                 To deliver on promises, take time                 we actually agreed here? What does it mean
                 to study and internalize what’s                   for you?” The facilitator helped the employees
                 commemorated in the agreement.                    visualise the reality of the outsourcing
                                                                   relationship: “If this is what we do, this is what
                 To do so, bring in a third-party facilitator to
                                                                   it will look like for you and your people.” These
                 run workshops that ‘translate’ the language
                                                                   exercises embed the ethos of the agreement
                 of the agreement into real-life scenarios and
                                                                   across both organizations, moving beyond the
                 processes. One executive recounts how a
                                                                   checklist of expectations.
                 facilitator helped employees to reinterpret the
                 contract, and answer the questions, “What have




                 “Internally, ensure you’ve properly mapped and understood issues surrounding
                 each of the customers within the [client] organization (i.e. how those
                 relationships work and how people react). Don’t fall afoul of the strongest
                 opinion-formers within groups. Understand who they are--they are not always
                 the most obvious ones.”
                 —Outsource Provider


                                                                                                                        7
06
success factor




                 Achieving mutual goals,
                 bringing mutual benefits
                 The client must believe that success for the     Clients should not view providers as
                 provider equals success for the client.          a destination for savings, but as an
                                                                  extension of their own enterprise,
                 If the client genuinely supports and believes
                                                                  and an opportunity to create value.
                 in the importance of the provider’s success,
                 this enhances the chances of a successful        The best partnerships function as peer-to-peer.
                 collaboration. Says one client executive, “The   Says one client executive, “Even though they
                 better they perform, the better they perform     are a third party, we like to think they’re part of
                 for us. [We need to] ensure they’re motivated,   [our organization.] It’s 50-50, the relationship.
                 progressive and doing best industry practice.    We rely on them, we’re there to support them;
                 We’ll do whatever we can to support that.”       they’re the ones who give us feedback. [...] We
                                                                  bring new initiatives to the table, then they
                                                                  have 50% input on how it all works. [...] If we ask
                                                                  them to do something and they can’t do it, we
                                                                  have to be real; they can’t do everything. We
                                                                  always work on solutions together.”




                 “I’m supporting the growth of their business; this stimulates them to do things
                 for me that they might not be contracted to do. It’s a balanced ‘give and take’
                 relationship. I make sure information is shared; by withholding information,
                 you’re shooting yourself in the foot.”
                 —client company




                                                                                                                        8
07
success factor




                 Giving extra value and on-going innovation

                 The OS must have the ability to find             To innovate, create ripe opportunities.
                 connections between its knowledge
                                                                  The client and provider must set aside time—
                 base and the client’s needs.
                                                                  as a contractual obligation—to discuss and
                 Says one client executive, OS companies          support innovation. Says an OS executive,
                 must “look at the market and us, and             “Innovation happens when the client
                 understand trends. Understand what HR            encourages it, [saying,] ‘We’re going through
                 operations will look like in five years time.    a restructuring, and we’d love your thoughts
                 They must work out how they need to develop      on how we’re going to manage our workforce
                 their products to serve that industry. They      differently in this new model. Can you work with
                 should present us with leading-edge              us on this to make us more nimble?’”
                 capabilities that have been developed;
                 don’t use us to learn and build capabilities.”




                 “You need the right people and roles in place to foster this discussion
                 on a regular basis, as well as formal governance planning.”
                 —Client Organization




                                                                                                                     9
About the Authors
Susan DeFazio is Senior Director and Principle Workforce Consultant within
the Global Centre of Expertise for Kelly Outsourcing & Consulting Group. She
has extensive experience in the human capital sector which includes leadership
positions in staffing operations and strategic account management.

Dr Anne Dibley is Programme Director for the corporate MSc in Strategic
Marketing Leadership, and is a Lecturer in Marketing at Henley Business
School. Anne’s research projects for the Henley Centre for Customer Management
include studies focusing on corporate social responsibility, sustainability, how to
manage outsourcing relationships, and collaborative innovation.


About the Henley Centre for Customer Management
Under the directorship of Professor Moira Clark, the centre brings together business
practitioners, industry thought-leaders and experts/ academics to help organisations tackle
today’s business challenges through a programme of workshops and research projects.
Find out more at www.hccmsite.co.uk.


About KellyOCG
KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,
Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the
areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition and Organizational Effectiveness, and Executive Search.
Further information about KellyOCG may be found at kellyocg.com.




                                                                                                    EXIT

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Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 

Forging successful partnerships with an outsourcing provider

  • 1. FORGING SUCCESSFUL PARTNERSHIPS WITH AN OUTSOURCING provider Advice & Anecdotes from the C-Suite Susan DeFazio & Dr Anne Dibley
  • 2. Kelly OCG and the Henley Centre for Customer Management at Henley Business School undertook a year-long study to identify the repeatable characteristics of successful outsource provider partnerships. They reviewed and analyzed the most respected publications on the topic of service agreements, and conducted in-depth interviews with over a dozen senior executives from outsourcing providers and client companies. The findings are crystallized here in a 15-minute primer for senior executives.
  • 3. 01 success factor Strong Governance Plans change. Outsourcing agreements and memorialize those ‘mechanisms’ in the The timing and composition of meetings should can’t account for every possible wrinkle in agreement. You may decide to have a single be spelled out in the service agreement—no an evolving, dynamic relationship. Strong point of contact to delegate tasks, or to institute matter how plodding the exercise may seem. governance agreements compensate for a customized ‘heat map’ that documents on- The structure and purpose of meetings should uncertainty and define how the partnership going tasks, unresolved issues, and individuals be reviewed constantly so they don’t become will ‘flex’ over time. responsible. stale. Consider atypical formats from time to time, such as a ‘blue sky’ discussion, to foster Create a mirrored governance structure Demand a clearly mapped ‘relationship innovative, fresh thinking. between the provider and client, from senior infrastructure’ from the outsourcing provider. management on down. Disseminate the right management The outsource provider should define and map information to support the governance. You should know who’s ‘facing off’ when clear roles across their global organization, problems surface. Mirroring begins with the repeated by country and by discipline. By Sharing clear, relevant, real-time information CEOs of both organizations, who should meet standardizing roles, the OS is better positioned is critical to drive action. Key performance at least bi-annually to ensure the governance to scale the partnership to multiple countries indicators (KPI) should be reviewed at every structure is effective at delivering the results and business units. meeting—not as lengthy ‘back-patting’ both parties expect. The ladder of mirrored overviews to show how all is proceeding to relationships should be clearly documented in Respect the critical importance of meetings plan, but a tightly focused look at exceptions. the agreement, from C-level all the way through as the ‘tailwind’ in a successful partnership. As one executive put it, “The MI should be used operations. A tightly woven partnership solves to drive out the low and high points, and think In our interviews, the subject of meetings problems more efficiently than the alternative. about the future.” (e.g. how often, who comes, what follows) Define roles clearly, particularly who ‘owns’ was a point of extensive discussion and what issues in your governance framework, thoughtfulness. Consistent, well-run meetings— then set up accountability for marking from weekly progress meetings to executive- progress and resolving problems. level performance review meetings—were characterized again and again as the element of Institute a clear system for following up on traction in highly complex relationships. action points from project review meetings— 3
  • 4. 02 success factor measuring value & success Measure success based on supporting Gut-check KPIs regularly. Client satisfaction is among the most growth rather than driving down costs. important measurements to capture. The OS and client should examine in-place Explains one executive, “Some clients think metrics regularly to determine if they are still No matter how stunning your KPIs, the client they’re asking for cost reduction and value, but relevant. To move beyond a short-term focus (both managers and end-users) must ‘feel’ are really only focusing on costs. They need on costs, be explicit about the value being this success to make it so. Says a procurement to look at the ‘total cost of performance.’ For delivered. Says an OS executive, “[We] might executive, “We, as procurement, can say, ‘this example, Client Performance + Provider A gives be running twice the number of applications is a really successful programme, we have ‘x’ you Performance X, but Client Performance + with half the people. If you don’t [define] this, in amount of savings’ etc, but in essence, the Provider B might give you Performance Y.” two or three years time, your client is going to programme will not be successful, as long as it say, ‘you aren’t doing enough.’” is not in the minds of our business stakeholders. An outstanding outsourcing provider can help clients raise the bar, setting new performance The concept of value can change, almost One executive reports two simple ways to goals based on growth and access to talent. imperceptibly, over time. Says one OS measure whether client satisfaction is high: executive, “You need a quarterly process to “First, does the client say ‘yes’ when you want recognise and define how value is changing. them to act as a reference for a new piece of At a senior level, every meeting you have with business? Second, is the client prepared to put the client, put on one sheet of A4 paper – ‘this their name or brand on a case study?” is what we’ve done for the organisation; this is what we’ve achieved” “To get approval for a video case study is the ‘holy grail.’ if your client is prepared to have a video of him on your website saying you’re all good to work with... In my opinion, it doesn’t get any better than that.” —outsourcing provider 4
  • 5. 03 success factor Openness, transparency, honesty & responsiveness Don’t forget to recognize the value the Expect a provider to propose strategic, outsource provider is providing, repeatedly. sophisticated solutions, based on their expertise—and offer plenty of opportunities Treat the provider as you would one of your for them to do so. own executives or managers to promote greater openness and transparency. Consider As one provider explained, it’s “not just getting an awards program, team building ‘day-aways’ the ball back over the net,” but dealing with or other special gatherings. These types of root causes and the long-term. The solution events warm up the relationship, signaling to a particular problem may not be a simple, respect and commitment. bottom-line solution, but require a more nuanced analysis. “Each institution holds dear the long-standing relationship and understanding they have [with an outsourcing provider]. Most companies would point to one or two suppliers where (sic) you know that, come hell or high water, that supplier is going to be there for you.” —client organization 5
  • 6. 04 success factor MUTUAL TRUST AND CONFIDENCE Trust and confidence—assuming it’s well- questions and analyze difficult problems. Why does building trust matter? If the OS team placed—begets a more productive relationship. Says one client company executive, “The feels hung out to dry, says one provider, “You Those are qualities that grow out of a outsource provider must have the ability to get the ‘dregs’ on that account. On the provider competent, long-term relationship, yet there are connect and understand the business, and side, people can manage themselves out of actionable steps to speed the process. look at the overall value it can bring to the accounts. The client doesn’t necessarily realise organisation. They need to understand the it’s getting the B, C and D teams.” Share problems early and plainly—and ask business pressures we’re facing, and how they for this type of openness in the agreement. can help us meet our goals.” Aspire to reach a state of mutual, institutionalised trust. Trust and confidence emerge not in heady Share sensitive information early. periods of success, but in the midst of challenge Institutionalised trust is characterised by low and stress. One OS leader explains, “Honesty is A true measure of mutual trust is the number attrition and extensive sharing of financial telling the truth when you’re asked a question; of ‘unofficial conversations’ the relationship information. Says one provider executive, transparency is telling the truth, plus showing manager on the client side is prepared to have “You mention the name of the client, and concerns, gaps, negatives, and being open with his counterpart on the provider side. For everyone responds instantly. [...] Each institution when you can’t do something. example, a client may tell the provider about holds dear the long-standing relationship an organisational change before it has been and understanding that they have. [...] Most Choose your key contacts—particularly officially announced to help the provider look companies would point to one or two suppliers the OS-based ‘client manager’—wisely. good to within his own organisation: “They’re where you know that, come hell or high water, This individual should be chosen as a steward telling you because they trust you that it won’t that supplier is going to be there for you” of the relationship. Aside from having excellent go any further, [...] giving you a ‘heads up’ on relationship skills, he or she should also be a something that may impact you, rather than shrewd businessperson, able to ask probing leaving you on the back foot.” 6
  • 7. 05 success factor Delivering what you promise To deliver on promises, take time we actually agreed here? What does it mean to study and internalize what’s for you?” The facilitator helped the employees commemorated in the agreement. visualise the reality of the outsourcing relationship: “If this is what we do, this is what To do so, bring in a third-party facilitator to it will look like for you and your people.” These run workshops that ‘translate’ the language exercises embed the ethos of the agreement of the agreement into real-life scenarios and across both organizations, moving beyond the processes. One executive recounts how a checklist of expectations. facilitator helped employees to reinterpret the contract, and answer the questions, “What have “Internally, ensure you’ve properly mapped and understood issues surrounding each of the customers within the [client] organization (i.e. how those relationships work and how people react). Don’t fall afoul of the strongest opinion-formers within groups. Understand who they are--they are not always the most obvious ones.” —Outsource Provider 7
  • 8. 06 success factor Achieving mutual goals, bringing mutual benefits The client must believe that success for the Clients should not view providers as provider equals success for the client. a destination for savings, but as an extension of their own enterprise, If the client genuinely supports and believes and an opportunity to create value. in the importance of the provider’s success, this enhances the chances of a successful The best partnerships function as peer-to-peer. collaboration. Says one client executive, “The Says one client executive, “Even though they better they perform, the better they perform are a third party, we like to think they’re part of for us. [We need to] ensure they’re motivated, [our organization.] It’s 50-50, the relationship. progressive and doing best industry practice. We rely on them, we’re there to support them; We’ll do whatever we can to support that.” they’re the ones who give us feedback. [...] We bring new initiatives to the table, then they have 50% input on how it all works. [...] If we ask them to do something and they can’t do it, we have to be real; they can’t do everything. We always work on solutions together.” “I’m supporting the growth of their business; this stimulates them to do things for me that they might not be contracted to do. It’s a balanced ‘give and take’ relationship. I make sure information is shared; by withholding information, you’re shooting yourself in the foot.” —client company 8
  • 9. 07 success factor Giving extra value and on-going innovation The OS must have the ability to find To innovate, create ripe opportunities. connections between its knowledge The client and provider must set aside time— base and the client’s needs. as a contractual obligation—to discuss and Says one client executive, OS companies support innovation. Says an OS executive, must “look at the market and us, and “Innovation happens when the client understand trends. Understand what HR encourages it, [saying,] ‘We’re going through operations will look like in five years time. a restructuring, and we’d love your thoughts They must work out how they need to develop on how we’re going to manage our workforce their products to serve that industry. They differently in this new model. Can you work with should present us with leading-edge us on this to make us more nimble?’” capabilities that have been developed; don’t use us to learn and build capabilities.” “You need the right people and roles in place to foster this discussion on a regular basis, as well as formal governance planning.” —Client Organization 9
  • 10. About the Authors Susan DeFazio is Senior Director and Principle Workforce Consultant within the Global Centre of Expertise for Kelly Outsourcing & Consulting Group. She has extensive experience in the human capital sector which includes leadership positions in staffing operations and strategic account management. Dr Anne Dibley is Programme Director for the corporate MSc in Strategic Marketing Leadership, and is a Lecturer in Marketing at Henley Business School. Anne’s research projects for the Henley Centre for Customer Management include studies focusing on corporate social responsibility, sustainability, how to manage outsourcing relationships, and collaborative innovation. About the Henley Centre for Customer Management Under the directorship of Professor Moira Clark, the centre brings together business practitioners, industry thought-leaders and experts/ academics to help organisations tackle today’s business challenges through a programme of workshops and research projects. Find out more at www.hccmsite.co.uk. About KellyOCG KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider, Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources Consulting, Career Transition and Organizational Effectiveness, and Executive Search. Further information about KellyOCG may be found at kellyocg.com. EXIT