BPO success- best practice for organizational changes
By: Max Info
Submitted: 2009-03-07 05:02:17 | Word Count: 567
In this article we will explore best practices to create different groups in your organization and align them to successfully manage and execute BPO projects that meet your company’s strategic goals.
1. Organization Changes
First you should make organizational changes to support the outsource relationship with the vendors. The upper-level management should create four groups within their organization to support smooth functioning of the outsource relationship.
1.1. Executive Group
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This group consists of C-level executives overseeing all other groups formed to successfully manage and execute the outsource relationship. It will make sure that all other groups have their conscience in making the right outsource decisions.
1.2. Governance Group
This group is responsible for ensuring contract compliance, performance management, and issue resolution. It takes care of any issues arises between the team members of small business and outsource vendor. It consists of senior members from organization and outsource vendor.
1.3. Outsourced Business Process Group
This group is responsible for managing and choosing the best business processes that are outsourced to the vendor. Generally employees from both organization and outsource vendor will be members of this group.
1.4. Retained Business Process Group
This group is responsible for redesigning internal business processes based on outsourcing solution so that touch points and handoffs between internal and outsourced business processes are carried out appropriately.
2. Avoiding Common Outsource Pitfalls
Any new company wide initiative will bring uncertainties in organizations, outsourcing is no different to this phenomena. The executive team should align the above groups to take proper decisions to answer following key questions:
* Due to the outsourcing, what are the overall business process changes and who is responsible for executing them?
* How do retained and outsourced business processes relate with each other and who is responsible for integrating them?
* Which groups are responsible for the ownership of the business processes and how do they make sure the smooth execution of them?
3. Achieving Strategic Outsource Value
Following are the take away points, you should consider in forming the groups:
Senior Management Involvement: There must be interaction between the governance group must work closely with the executive group.
Organization Involvement: Governance group must reach out all the departments of the organization to educate about outsourcing and get their feedback to achieve strategic business value of the outsource efforts.
Business Process Standardization: The retained and outsourced business groups must create business process standards so that the service performance can be measured.
Achieving Goals: Achieving the goals of both the organization and the outsource vendor is very important.
Achieving Synergy: A good governance model should be build upon the needs of both the organization and the outsource provider.
Outsource Contract: Having a well written outsource contract is must, but outsource contract alone cannot help in solving all the problems.
Management Transition: The executive group must plan proper management transition so that current team members will be given specific tasks once the outsource initiative begins.
Overall Control: It is important that organizations retain overall control of the outsourced and retained business processes.
Managing the Risk: Any time organizations engages in new partnership there will be risks associated with it, it is no difference in outsourcing partnership as well.
3. Conclusion
By creating appropriate groups and assigning proper roles to the team members before starting the outsource initiatives, organizations can achieve their outsource goals.
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