How to Get the Best from Outsourcing
There's a great little article ('Business Lifeforms') on the back pages of the UK's leading management magazine, Management Today each month. It's a spoof (at least I think it is!) about some fictitious key player in a fictitious organisation. For January, it's about Ken, who's a 'Facilities Manager'.
Now Ken has seen it all and truly worked his way up from the bottom to the top. Until, that is, a couple of years ago when new MBA-armed suits took over and decide to slash Ken's department (until now, running very, very smoothly under Ken's watchful eye) and Ken himself. Of course it all goes pear-shaped and the top dog has to come grovelling back to Ken, offer him loads of money and a big car, basically to ensure that the toilets aren't 'backing up' any more!
This is in direct contrast to Michael Gerber, in his fascinating book The E-Myth Revisited. There he talks about working 'on' the business and 'in' the business, making it clear that if you do too much of the grindstone not-my-expertise stuff yourself, you lose track of what you are really good at, and what you went into business for.
In a past life, I too experienced challenging outsourcing. At one time I had a great little local cleaner who I trusted (he even opened the store up for me - hmmm, that was a long time ago!). He did an excellent job and was on hand for emergencies. Then a new senior director decided to consolidate and outsource, for 'economy and consistency'. It was cheap - but the service was awful. Each time I got a new 'centrally sourced' cleaning company, they came with great intentions for the first 3 months and then dribbled off (with our money!) until it became unsustainable and another 'excellent contractor' came along.
The moment of truth for me, was when the director for one of these contractors, came along for the first time in a brand new £60K Merc (and it's a few years ago now). Then I knew where my money would be going. I went through 6 contractors in 5 years, even though my hands were tied by 'Head Office' contracts!
To solve this problem? There needs to be strong leadership at the start. Very clear standards required from outside contractors and severe penalties (yes, stop paying them even!) for under achievement. Corporate central contracts agreed there, but implemented and managed locally, leave a lot of space for waste.
And yes, in a small business, don't even think of doing the bookkeeping yourself as soon as you can afford not to - do what you do best, value it and get on with creating the business you love, not like struggling Sarah in the book. But, get someone who you trust and who will deliver. Chris Barrow, of Million Dollar Coaching Practice fame, suggests that the very first thing anyone going into a consulting business should do, is get a PA. And that modern day evolution, a VA (virtual assistant) has made this a real, low cost possibility for many.
Moral of the story?
If you are going to outsource, especially if your business is big enough, where it's not only the fashion, but it can have economic and logistic value, take the following steps:-
Martin Haworth is a Business and Management Coach. He works worldwide,
mainly by phone, with small business owners, managers and corporate leaders. He
has hundreds of hints, tips and ideas at his website,
http://www.coaching-businesses-to-success.com.
(Note to editors. Feel free to use this article, wherever you think it might be of value - it would be good if you could include a live link)
...helping you, to help your people, to help your business grow...
Latest News
Single Source Introduces New Advanced Quote Management (AQM)(TM ... MarketWatch - All functions seamlessly integrate to the inherent back-office financials, inventory, purchasing and management reporting functionality of SM-Plus-meeting ... KANA Recognized by Leading Industry Publications for Innovation ... |
![]() BBC News | ECONOMIC REPORT Global manufacturing gauges collapse in November MarketWatch - ... of price pressures hit an all-time low, according to a survey of corporate purchasing managers released Monday by the Institute for Supply Management. ... Manufacturing index drops to 26-year low Manufacturing index at 26-year low Manufacturing hits 26-year low |
![]() CharlotteObserver.com | Construction Spending Reflects Economic Slowdown New York Times, United States - The Institute for Supply Management’s monthly index of manufacturing activity fell to 36.2, from October’s 38.9. The reading is worse than Wall Street ... October construction spending drops 1.2 percent US manufacturing weakest since 1982 Construction spending fell again in October |
![]() WCBD | Price Tags on Partridges and Pear Trees: A Different CPI New York Times, United States - By Catherine Rampell For the last 24 years, PNC Wealth Management (or its predecessor, Provident Bank) has released this whimsical index, a measure of the ... Video: 12 Days of Christmas' Items Would Cost $86,609 '12 Days of Christmas' items would cost $86609 Twelve Days of Christmas would cost $21000 |
Gideon Technologies CEO To Give Unified Compliance Management ... MarketWatch - Unified Compliance Management simplifies this complex problem. "The combination of a holistic centralized view of the network, unified and continuous ... |
AGC and LCM Declare Dividends MarketWatch - a diversified closed-end management investment company, has declared its December monthly dividend of $0.0664 per share, reflecting a reduction of $0.0286 ... AGC and LCM Declare Dividends Madison Strategic Sector Premium Fund (MSP) Declares Quarterly ... PPR - $.0340 November Dividend |
Reuters | AIG sells wealth management unit to Abu Dhabi group International Herald Tribune, France - NEW YORK: American International Group, the troubled insurance giant, said Monday that it had agreed to sell its wealth management provider AIG Private Bank ... AIG Sheds A Private Bank UPDATE 1-AIG to sell AIG Private Bank to UAE's Aabar AIG to Sell Private Bank to Aabar |
Updated Information Regarding Auction Preferred Securities Market ... MarketWatch - BOSTON, Dec 01, 2008 (BUSINESS WIRE) -- MFS Investment Management(R) (MFS) today announced the availability of information on the results of the weekly ... |
Lincoln Financial Group Announces New Senior Management Committee ... International Business Times, NY - She will also serve as amember of the firm's Senior Management Committee. Bettinger-Buckingham joins Lincoln Financial with more than 20 years ofexperience ... |
Research and Markets: Training Management Maturity Model: A ... MarketWatch - How effective is your current training management system? What do you need to do to improve it? Find out with this best practice model and set of assessment ... Research and Markets: Fundamentals of Quality Control and ... |
Resources
-
AdWords | Google AdWords | 21 Ways to Maximize ROI by Andrew Goodman
Get the original Google AdWords handbook by Andrew Goodman. This 155-page e-book is packed with advanced tips to help you maximize your AdWords campaigns. Download and get free December 2005 update.
-
Reservation software for Hotels, Motels, Bed and breakfast
Reservation software for Hotels, Motels, Bed and breakfast
-
Restaurant Checklists: restaurant menu design, cafe training, business plans, restaurant marketing a
Full package of restaurant information including restaurant menu design, training, restaurant business plans, restaurant marketing and Management forms and templates
-
Castlemelody.com: Web design and creative design of graphics
Web design with content Management system for dynamic and flexible websites.
-
...MySoftwareTemplates.com high-quality Microsoft Word templates for Software
Development, Proposal
Write successful Proposals, White Papers, Case Studies with slick templates, checklist and forms.
-
Living Within Your Means - The Easy Way!
"
-
PARENTING TOOLS to design the family of your dreams! What does your dream family look like?
Powerful tools for parenting, anger Management, and creative blocks!
-
Productivity. Improve business productivity through work measurement and method study.
Set of resources to improve worker, workplace and office productivity. Learn to measure productivity, calculate a productivity index and construct a total factor productivity index. Resources include team productivity and employee productivity.
-
Construction Information Services - Construction Management
Construction Information Services include Construction Management ebooks - Construction Software - Articles - Firm directories - Forecasting and Trends of the building industry
-
Landlord Property Management Rental Guide
Looking to manage your own rental property? Use our beginners guide for landlords and rental property investors!


