Outsourcing: Getting the Right Start
By Debbie Friedman
You’re a training executive who plans to outsource an important initiative. You write the RFP, select your vendor and negotiate the contract. Now it’s time to launch the project. The way you launch a project often predicts its outcome. Establishing a true partnership with your supplier in the beginning can ensure the best results in the end. What will it take? Learn from the outsourcing experience of a training executive from a large telecommunications firm who recently outsourced the development of a computerized simulation.
Prepare your organization
“I was a bit surprised by the reaction of my team. They seemed threatened by the consultants who I engaged to build the simulation. My team had years of experience in the industry. The three consultants who were designing the simulation were in their early 20’s, MBA’s from top schools and very bright. When my staff was slow to respond to the requests of the consultants and started to complain about how they were taking over, I knew something was up. I probably should have done a better job of preparing the team for the consultants.”
Training executives often view suppliers as people who are supposed to make them successful. The reality is that it is just as important for training executives to ensure that their suppliers succeed. Therefore, before launching the project, be sure to position your supplier and the project properly in your organization. Identify the critical players who must be involved for the project to succeed. Consider sponsors of the project, the IT department, your subject matter experts, your team, and any others. Make sure they fully understand the benefits and importance of the project. How will these individuals need to be involved? What kind of commitments will you need from them? Make sure they know your supplier and why you have chosen them. You might even consider asking them to help write the RFP or be involved in the selection process. By involving them, you are building receptivity for the initiative and minimizing resistance.
Prepare your suppliers
“On a previous project, I hadn’t done a good job of helping the consultants understand our organization. When I brought the simulation vendor in, I knew the importance of spending time with them up front. We spent a full day discussing the organization, the jobs, recent changes, whatever I could think that would help them better understand the company. They later commented on how well prepared they felt when they went to do the interviews with our subject matter experts. I got good feedback from the subject matter experts after the interviews. They thought I had done a good job selecting the vendor because they seemed so knowledgeable about our company.”
Preparing your suppliers by orienting them to your organization is a critical step. You usually begin this process in a kick-off meeting. Orienting suppliers is just as important as orienting new employees. Helping your suppliers better understand your organization will make them more productive more quickly. With greater knowledge, your suppliers are more likely to achieve project outcomes. Discuss the following:
· Business drivers of the initiative
· Objectives and how you plan to measure success
· Cultural and political issues that may impact the project
· Key stakeholders
· Roles and responsibilities
· How you will work together
· Timing and project milestones
· Potential landmines or obstacles
· Any other issues that you feel will contribute to success
Model the kind of partnership you wish to build
“I was reluctant to give further feedback on the look and feel of the simulation. I had done so previously and what they came back with was not much better. I also knew the current look was going to distract our audience. How things look in our company is really important. I decided to give it another try. It was worth it. The vendor decided to put another graphic designer on the project, and we ultimately got the look we needed.”
Strong partnerships are a key to success. From the outset, look for ways to establish trust. Where possible, launch each project with a face-to-face meeting. Let your partners know that you place a high value on building strong partnerships. Communicate regularly and follow through on your commitments. Provide feedback to your suppliers and seek feedback on your own performance. Check to see what you can do to strengthen the partnership. Be aware that conflict is natural on most projects. When it surfaces, deal with issues quickly. Don’t let them fester. Conflicts are usually not intended, so listening to your partners and trying to understand their perspectives will tend to clear the air more quickly. Being a role model for the kind of partnership you wish to establish will send a strong message to your suppliers about how you want to work. The greater your partnership, the greater your chance of success.
Debbie Friedman is author of Demystifying Outsourcing: the Trainer’s Guide to Working with Vendors and Consultants (Pfeiffer, 2006). With 20 years at Macy’s, Inc., Debbie is Operating Vice President - The Leadership Institute, where her focus is development of the top 1800 executives. She has held several training positions at Macy’s in which she has managed numerous complex outsourced projects. Macy’s has been named for two years as one of the Top 100 Companies in Training and Development by Training Magazine.
Prior to her work at Macy’s, Debbie held a variety of positions in sales and marketing education for AT&T. She began her career in classroom teaching and also served as Assistant Director of Career Planning and Placement at Xavier University. Debbie received a Masters in Education from Xavier University and a Bachelor of Arts from Stern College for Women, Yeshiva University.
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