Sheet1Page1OutsourcingMethodologyDeliverables:NoDeliverables.PhaseName:StrategicallyIdentifyOpportunitiesPhaseDeliverables:ListingofOutsourcingOpportunitiesStrategicRiskMatrixStepName:MeetwithManagementStepDeliverables:NoDeliverables.Tasks:1Determinewhotheappropriateindividualsaretobeincludedinthemeeting.MostlikelythemeetingwillincludetheCEOandpossiblyotherkeymanagementteammembersincludingtheCOO,CFO,etc.Thismeetingisintendedtobeahigh-levelmeeting.A2Itisanticipatedthatthismeetingwouldlastapproximately1-2hours.However,thetimeframecouldvarysignificantlydependingonthespecificsofthesituation3Ifaconsultantoroutsiderisattendingthemeeting,itmaybehelpfulforthatpersontoreviewinadvancetheCompany’sannualreport,strategicplan,brochures,orotherbackgroundinformation.4Ifaconsultantisusedforthatmeeting,dependingonthenumberofseniorexecutivesatthemeeting,itmaybehelpfultoutilizevariousfacilitationtoolsandtechniques.StepName:DiscussOutsourcingPrinciplesStepDeliverables:OutsourcingPrinciplesTasks:1Defineoutsourcing:theconsciousbusinessdecisiontomoveinternalworktoexternalsupplier.2Discussreasonsforoutsourcing:a.Cannotperformthefunctioninternally.b.Cannotperformthefunctionaswellasoutsideprovider.c.Outsourcingaddsvalueotherwiseunattainable.3Discussbenefitsofoutsourcing:a.Providesopportunitiesforexpensereductionandeconomiesofscale.b.Providesopportunitiesforspecializedexpertiseandimprovedquality.c.Allowssupplierstobringinnewapproaches,technologyorservices.d.Allowsbusinessunittofocusoncorecompetencies,ratherthanonlowervalue-addedactivities.4Discussoutsourcinginhibitors:a.Savingsuncertainb.Perceivedlossofcontrolc.Unfamiliarwithservicequalityd.Organizationalthreatse.Difficultyreversingthedecisionf.EmployeeturnoverTimetoCompletionSheet1Page25Discussstrategicoutsourcing:a.Usuallyprovidedbyapartnerproviderb.Crossesorganizationc.Entireprocessisoutsourcedd.Affectslargenumberofpeoplee.Largeportionofbudgetinvolvedf.InvolvesInformationSystemssupportg.Involveslargeamountsofinfrastructureh.Dealswithprocessesthatareimportanttoindustry6Discussoperationaloutsourcing:a.Usuallyprovidedbyapartnerorsupplierb.Involvesasinglebusinessfunctionc.Entireprocessisoutsourcedd.Dealswithprocessesthataresomewhatimportanttoindustry7Discusstacticaloutsourcing:a.Usuallyprovidedbyasupplier/vendorb.Piecesofaprocessc.Canrelatetostrategicoroperationalleveld.Transactionale.Nocontract8PresentOutsourcingFrameworkbrochure(availablefromtheChicagoDistributionCenter;Item#94-4029)toprovidegraphicalrepresentationofoutsourcingprocessandkeyquestionsineachstep.StepName:IdentifyOrganization'sFunctionsStepDeliverables:ListingofOutsourcingOpportunitiesTasks:1UtilizeGlobalBestPracticesClassificationSchemetohelpidentifytheorganization’sfunctions.2Determinecorevs.non-coreandessentialvs.non-essentialfunctions.a.Coreprocessesgeneratecompetitiveadvantageanddeservethebulkofmanagement’sfocusandinvestment.b.Non-coreprocesseswhicharenon-essentialareexcellentcandidatesforoutsourcing,tootherswhomakethesefunctionstheircore.c.Essential,non-coreprocessesmayalsobecandidatesforoutsourcing.3Performbackgroundresearch.Obtainaclientdatapackage(initialdocumentationshouldbeobtainedfromtheclient,ifpossible):-Annualreports-Organizationcharts-Systemsdocumentation-Productliterature-Reportsfrompreviouswork,eitherinternalorexternalconsultants-Brochures-Auditteambluebacks(ifan...
