Changing Definition of Leadership and Governance in a Complex Business Environment - Its Impact on the Outsourcing Model
Changing Definition of Leadership and Governance in a Complex Business
Environment - Its Impact on the Outsourcing Model
The present day need for decentralization, empowerment and distributed power calls
for a change in the conventional idea of strong leadership and governance, according
to a recent article published in Outsource Magazine. The writer emphasizes the fact
that governance should not be the prerogative of a few people, but spread
throughout the organization. Governance in its true sense must be able to bridge the
silos within an organization, irrespective of whether they are associated with
functions, power hierarchies or departments.
The business environment is highly dynamic now, and ensuring high performance in
organizations is definitely a challenge. The complexities that may be organizational,
process /product/supply chain related, environmental, or those associated with
decision making can lead to increased risks. It can also create frustration among the
workforce, affecting performance. Organizations need to exploit the inherent
complexity, and take care not to add to the existing complexity. High performance
organizations must have governance and leadership that is progressive rather than
The article goes on to discuss seven attributes that can help a business survive and
thrive in the present day complex and challenging environment. These are
Just as organizations, their outsourcing partners also need these seven attributes to
ensure superior performance. Outsourcing governance should be based on the
distributed leadership concept. It should ensure appropriate decentralization of
power, coordination of decisions and actions, and compliance with organizational
policies and regulations. This distribution of power should be ensured at the
strategic, corporate and operational levels.
Outsourcing – The Qualities That Determine Success
Awareness is needed to clearly comprehend the changing environment both
internally and externally and evaluate how it will impact the organization.
It is very important to ensure accountability – in this way, there is always
someone that is responsible for ensuring excellent performance and
Outsourcing firms must ensure adaptability for the deals and even overall
reshaping if it is called for from the viewpoint of business enhancement. The
systems, structures, processes and teams set apart should be agile to ensure
Alignment is absolutely vital – there should be perfect communication and
interaction among all parts of the outsourcing operation. Any change to the
deal, process, activity, methodology or people must be comprehended and
implemented in full collaboration.
When it comes to action, it has to be coordinated and implemented across the
different organizations and teams. Each participant should be responsible for
delivering on their actions.
Finally, measure what benefits have been achieved and its impact on the
business. Consider what additional benefits have been gained. Instead of a
narrow focus, look at the achievement in terms of the strategic objectives and
broader organizational goals.
Relationship Management for Successful Outsourcing Engagements
According to the Centre for Outsourcing Research & Education (CORE), outsourcing
services buyers are now more focused on healthy outsourcing relationships.
Organizations have shown special interest in investing more of their time, capital and
resources with the objective of building long term relationships. Innovative
governance models and effective outsourcing strategies are adopted to achieve
maximum business value from an outsourcing engagement.
Strong leadership and governance can deliver higher performance in business
process outsourcing. Let it be medical transcription outsourcing, medical billing
outsourcing or any other outsourcing engagement, distributed leadership and
governance has a significant role to play.