I ran across the “Sourcing Sage” and his creative cartoons about outsourcing. I found the cartoons to be entertaining but not-so-much the sage advice. His wisdom is that in order to outsource/share services an organization needs to do the following:
- Process Documentation
- Standard Operating Procedures (SOP)
- Training Curriculum
- Knowledge Base
- Product Documentation
- Organizational Optimization
- Workstation Standardization
- Systems Inventory
Nothing new or creative but does “re-emphasize” what most big IT firms will tell you. Unfortunately, most of this stuff guarantees nothing when sharing services and/or outsourcing. In fact, most of it is waste. However, in the industry this is best practice. A fool and his money are soon parted.
And it happens all too often . . .
Standardization leads to failure demand as these manufacturing factories can not absorb variety found in service. The result is a colossal waste of organizational dollars. All the documentation in the world is not going to fix an already broken work design, it just adds to the costs.
For more on outsourcing and shared services click the one that interests you.
Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public). His organization helps executives find a better way to make the work work. Read his articles at Quality Digest and his column for CustomermanagementIQ.com. Learn more about the The 95 Method for service organizations. Reach him on Twitter at www.twitter.com/TriBabbittor LinkedIn at www.linkedin.com/in/trippbabbitt.Share This:
I’m connecting with you through LinkedIn (we’re both Hanover alums). I appreciate your blog and plan to come back to visit again.
I have a lot to learn about business, as I’ve served in pastoral ministry for 18 years. I’m also no military expert. But I can’t help but wonder if some of the same cost-saving organizational principles the business sector is applying to improve the bottom line could be applied to the military-industrial complex to save us tax money.
Thanks for the post.
Re: Pay for performance
Thank you! In my opinion this is one of your best columns and about one of the most misunderstood aspects of motivation. Great job!