OutsourcingMethodologyDeliverables:NoDeliverables.PhaseName:StrategicallyIdentifyOpportunitiesPhaseDeliverables:ListingofOutsourcingOpportunitiesStrategicRiskMatrixStepName:MeetwithManagementStepDeliverables:NoDeliverables.Tasks:1.Determinewhotheappropriateindividualsaretobeincludedinthemeeting.MostlikelythemeetingwillincludetheCEOandpossiblyotherkeymanagementteammembersincludingtheCOO,CFO,etc.Thismeetingisintendedtobeahigh-levelmeeting.Asaresult,itisimportantthatonlyseniorlevelexecutivesattendthemeeting.Lowerlevelsofmanagementmaybedefensiveaboutoutsourcingcertainfunctions.2.Itisanticipatedthatthismeetingwouldlastapproximately1-2hours.However,thetimeframecouldvarysignificantlydependingonthespecificsofthesituation3.Ifaconsultantoroutsiderisattendingthemeeting,itmaybehelpfulforthatpersontoreviewinadvancetheCompany’sannualreport,strategicplan,brochures,orotherbackgroundinformation.4.Ifaconsultantisusedforthatmeeting,dependingonthenumberofseniorexecutivesatthemeeting,itmaybehelpfultoutilizevariousfacilitationtoolsandtechniques.StepName:DiscussOutsourcingPrinciplesStepDeliverables:OutsourcingPrinciplesTasks:1.Defineoutsourcing:theconsciousbusinessdecisiontomoveinternalworktoexternalsupplier.2.Discussreasonsforoutsourcing:a.Cannotperformthefunctioninternally.b.Cannotperformthefunctionaswellasoutsideprovider.c.Outsourcingaddsvalueotherwiseunattainable.3.Discussbenefitsofoutsourcing:a.Providesopportunitiesforexpensereductionandeconomiesofscale.b.Providesopportunitiesforspecializedexpertiseandimprovedquality.c.Allowssupplierstobringinnewapproaches,technologyorservices.d.Allowsbusinessunittofocusoncorecompetencies,ratherthanonlowervalue-addedactivities.4.Discussoutsourcinginhibitors:a.Savingsuncertainb.Perceivedlossofcontrolc.Unfamiliarwithservicequalityd.Organizationalthreatse.Difficultyreversingthedecisionf.Employeeturnover5.Discussstrategicoutsourcing:a.Usuallyprovidedbyapartnerproviderb.Crossesorganizationc.Entireprocessisoutsourcedd.Affectslargenumberofpeoplee.Largeportionofbudgetinvolvedf.InvolvesInformationSystemssupportg.Involveslargeamountsofinfrastructureh.Dealswithprocessesthatareimportanttoindustry6.Discussoperationaloutsourcing:a.Usuallyprovidedbyapartnerorsupplierb.Involvesasinglebusinessfunctionc.Entireprocessisoutsourcedd.Dealswithprocessesthataresomewhatimportanttoindustry7.Discusstacticaloutsourcing:a.Usuallyprovidedbyasupplier/vendorb.Piecesofaprocessc.Canrelatetostrategicoroperationalleveld.Transactionale.Nocontract8.PresentOutsourcingFrameworkbrochure(availablefromtheChicagoDistributionCenter;Item#94-4029)toprovidegraphicalrepresentationofoutsourcingprocessandkeyquestionsineachstep.StepName:IdentifyOrganization'sFunctionsStepDeliverables:ListingofOutsourcingOpportunitiesTasks:1.UtilizeGlobalBestPracticesClassificationSchemetohelpidentifytheorganization’sfunctions.2.Determinecorevs.non-coreandessentialvs.non-essentialfunctions.a.Coreprocessesgeneratecompetitiveadvantageanddeservethebulkofmanagement’sfocusandinvestment.b.Non-coreprocesseswhicharenon-essentialareexcellentcandidatesforoutsourcing,tootherswhomakethesefunctionstheircore.c.Essential,non-coreprocessesmayalsobecandidatesforoutsourcing.3.Performbackgroundresearch.Obtainaclientdatapackage(initialdocumentationshouldbeobtainedfromtheclient,ifpossible):-Annualreports-Organizationcharts-Systemsdocumentat...
