3 Steps to Outsourcing Success
Nontraditional Project Management,
PM & the Economy,
Categories: Benefits Realization, Best Practices, Change Management, Complexity, Innovation, Innovation, Leadership, Leadership, Lessons Learned, Lessons Learned, Nontraditional Project Management, PM & the Economy, Program Management, Project Delivery, Project Failure, Project Planning, Project Requirements, Risk Management, ROI, Roundtable, Stakeholder, Strategy, Teams
By Peter Tarhanidis
When leaders use outsourcing it is often in an effort to enhance the organization’s value proposition to its stakeholders.
Outsourcing allows leaders to focus on and invest in the firm’s core services while using cost effective alternative sources of expertise for support services.
When services are outsourced, management and employees need to prepare for a transformation in organizational operations—and project managers must establish a strategy to guide that change.
Creating an Outsourcing Strategy
Project managers can help to create an effective outsourcing strategy based on a three-part structure:
1. Assess the current state
This assessment should define the firm’s:
2. Consider the “to-be” state
The to-be state should be designed based on a comprehensive evaluation and request for proposal, including a good list of best alternatives to negotiated agreement items.
The to-be state must consider:
3. Consider the governance required to sustain the future state
A new internal operating model needs to be formed. This includes establishing teams to manage the contract, such as senior sponsorship, an operational management team or a vendor management team.
Then the outsourcer and the outsourcing organization should focus on continuous improvements that can be made to the process.
Avoiding Outsourcing Pitfalls
Project managers can avoid a few common pitfalls in their outsourcing projects:
Overall, if done with a defined end in mind, leaders can capitalize on outsourcing by reducing operational costs, reinvesting those savings in core services, and providing access to expertise and IT systems that would normally not have been funded via capital appropriation.
Have you been a part of any outsourcing efforts? What advice would you offer to project managers involved in similar projects?
By Marian Haus, PMP
Welcome to the age of digital transformation.
New technologies such as 3-D printing, augmented and virtual reality, and digital currencies are becoming commonplace. Connected and autonomous cars, and holographic displays are on the horizon. This is all on top of the various mobile devices—smartphones, tablets, laptops—that we can’t let go of.
All this has changed consumer expectations and behaviors for good. Services must be fast and easy-to-use (RIP user-manual/guide), fully transparent (in terms of product offering, quality, price), always available (24/7) and multi-device accessible (via desktop, mobile, wearables, etc.).
Fearful of being left behind, businesses look to understand and predict consumer needs through deep and semantic web search, machine learning and big data customer analytics.
The Upshot for Projects
But digital transformation is not only changing our lives and disrupting businesses. It’s also reshaping and speeding up project delivery models. The planning and execution of innovative projects in today’s digital era can no longer be done at the same pace, with the same methodologies and tools. To attain increased time-to-market results, speed and flexibility are key—so project managers must adapt their approaches.
So what’s a project manager to do? Here some thoughts.
1) Remain calm and confident! Remember when agile disrupted the well-established waterfall world? Project managers had to adapt their approach, toolsets and methodologies. We can adapt again.
2) Enable organizational and structural simplicity and dynamism. Foster flexible structures, smaller project teams and increasing collaboration within the project team. (Here are some tips on how to set up your team and organization.)
3) Improve execution speed by tailoring and simplifying your approach and methods. For instance, embark on some rapid prototyping as a proof of concept before implementing the final product. Or breakdown the project into several smaller projects that can move independently faster as together.
4) Foster new and innovative ideas. Encourage open-mindedness and increasing failure tolerance.
5) Focus on results, not process. Plans, Gantt-charts, budgets, forecasts, risk plans and stakeholder lists are important. But while prototyping or going through trial-and-error iterations during product development, don’t let methodology and specific techniques get in the way of the needed results.
6) Adapt your communication approach by providing stakeholders with rapid access to real-time project information. For example, establish an online project community that can easily be updated with the latest information. (Here are more ideas on how to improve communication.)
Finally, enjoy the exciting and intense times we leave in, driven by dynamism, innovation and more networking and collaboration than ever.
I’d like to hear from you on how you are managing projects and embracing change in the modern digital age.
By Peter Tarhanidis
Happy customers are better customers. Savvy organizations develop a customer experience strategy to make them happy, and savvy project managers understand that the customer experience should drive digital projects forward. Smart digital practices should enable a better customer experience by re-evaluating the customer value of processes and the performance of operational teams.
Here are three tips for project managers delivering digital projects tied to a customer experience strategy:
1. Align the attributes that drive customer experience across projects. Once identified, chart these attributes back to customer journey maps, processes and service level measurements, and integrate them into technology investment decisions. This will ensure funding for digital projects.
2. Automate customer experiences to simplify the journey maps. Analyze the pain points across the customer journey map. Empathize with how they interact with the channels to obtain your product or service. Hone in on the negative areas that drive the experience and create a portfolio of improvement opportunities. These improvements should have a complementary operational cost reduction. Moving away from intense labor-driven activities to automated customer self-service approaches achieves operational excellence.
3. Create a service culture in your organization. While transitioning a project into operations, train teams on providing superior customer service, recognize service representatives who model best practices, and integrate customer experience measures into performance compensation systems to drive behavior changes and reinforce the new culture.
Thankfully, technology advancements in customer relationship management have created measurement tools that make it easier than ever to understand what customers are thinking and want changed. Look to these three categories to help target improvement efforts:
Net Promoter Score defines the voice of the customer and an overall satisfaction rating.
Tools that scan social media platforms (e.g., Facebook, Twitter, Instagram) to gather brand feedback.
Channel content management tools that highlight the performance and value of various types of customer interactions—whether via email, websites, or phone, for example.
The bottom line: Let the customer experience guide the selection and execution of customer-facing digital projects—and then look for boosts to customer experience scores.
Innovation is a natural skill in human beings—that’s how we moved from the Stone Age to the Space Age. The corporate world, however, seems like it’s in a different universe, where everyone wants innovation but appears to be racing to kill it. Here are a few easy-to-use tricks for you to join the race.
1. Focus on the quarter
Make sure you’re not allowing your team to think beyond a quarter. Quarterly results are dear to CEOs. So only focus on the next quarterly result and make sure everyone on your team does too.
2. Be Impatient
Patience is a weapon of lethargic people. You should never allow it to develop in your team. Any project or idea that takes time to materialize should not be your cup of tea. Let your team members continue to focus on your short-term goals.
3. Keep the team busy
You should be a very strict taskmaster. Check what time your team comes in and leaves for the day, and all the activities they do in between to ensure they are continuously busy in day-to-day activities. Keep their task list overflowing so that no room is left for any free time or “blue sky” thinking.
4. Maintain order
You should lay down strict processes and not allow any deviation at any cost. Teams must follow the process even if it is not required. You never know how a simple deviation could turn out to be an innovation. Explain to your team that doing things differently is the job of other teams!
5. Stay safe
Just in case the above suggestions do not impress you enough, and some little spark in the corner of your heart wants to allow a deviation, let me warn you—they all are full of risks. Risks mean uncertainty that can put your project in trouble or jeopardize your dearest short-term goals. They can even hit your reputation of consistently delivering linear results. You should play it safe by taking the routine paths already proven by others.
6. Don’t listen
Listening will be seriously injurious. If anyone comes to you suggesting a solution to a problem or a new way of doing something, don’t listen. Sometimes, you may be tempted, especially if someone’s sharing success stories. But ignore it all, lest innovation seeps in. If anyone suggests any idea, reject it immediately, giving a very routine reason, such as “it will not work in our project.” You should not give any new reason, otherwise it will appear that you are doing some innovation.
7. Reward only the million-dollar idea
Rewards are precious and should be given to the best of the best people. If a stubborn team member implements a good idea despite all your efforts, immediately point out a flaw in it, ignoring everything else. If this person meets some early-stage failure, that’s an opportunity for you to explain to the team why they should not try new things. Thoughts of rewarding someone should not even occur to you until the idea is recognized by some external agency.
I’m being facetious, of course. My point is that breakthrough innovations are not harder in practice than many seem to think—but our day-to-day responsibilities and deadlines make it hard to step back and change thinking.
What do you think are the most common practices that prevent innovative thinking? How can they be avoided? Please share your thoughts in a comment below.
By Jen Skrabak, PMP, PfMP
Fifteen years ago, I transitioned from being an IT manager to a project manager for the first time. With this month’s theme at projectmanagement.com being “new practitioner PM,” here are three key lessons I learned while managing my first projects.
When I was an IT manager, I always had projects that were assigned to my department. I loved being part of large projects so much I realized I wanted to do it full-time. So I made a conscious decision to transition to being a dedicated project manager.
Managing a project is truly like being a CEO of your own company—you have authority over budget, resource and key decision-making responsibilities. However, it’s an art, and mastery takes time. These are the three fundamental lessons I learned:
1) Communication is about simplifying and personalizing.
Although we may hear that 90 percent of a project manager’s job is to communicate, the best communication is one that doesn’t contain acronyms, special terminology or techno-speak.
Remember that key stakeholders are often involved in multiple projects. To get their attention, you need to make your communications concise and personal while clearly specifying the action desired.
Avoid lengthy mass emails, and tailor the frequency and channel according to the person. One sponsor told me she gets so many emails that I should schedule a meeting if it’s important. Another sponsor told me he works best with instant messaging if I needed something immediately.
The key is to know your audience and adapt accordingly. My first sponsor meeting always includes finding out how and when he or she would like to be communicated with.
2) Project management is about knowing which tools to use when.
Yes, project management is about processes, knowledge areas and ITTOs (inputs, tools and techniques, outputs), according to the PMBOK Guide. But, most importantly, it’s a menu of available options.
Trying to do everything by the book or insisting on adherence to every single template and tool is setting yourself up for disaster. Assess the needs of the project, and don’t ignore the culture of the organization. You can’t go from zero processes to textbook processes overnight. You may need to start slow by introducing concepts and build from there.
3) Build relationships.
Trust is key. When you’re starting out as a project manager, you’re an unknown, so you need to work extra hard to establish the relationships. It’s important to come across as professional, yet approachable and flexible in order to build confidence with your team, and most importantly, your sponsors and key stakeholders. Regular, relaxed one-on-one meetings, such as getting coffee or grabbing lunch, help to build cohesive partnerships that will pay dividends when the going gets tough on the project.