NOA Strategic Leadership Masterclass
23rd November 2011
When gearing up to outsource, it is vital to get the preparation and planning right. The NOA has published an Outsourcing Lifecycle Model which its members embrace (if they don’t have their own). The model has ‘Strategic Leadership’ at its core, reflecting the need for strategic leadership to link and drive forward the other key stages of the lifecycle model: Relationship Engagement Transition and Change and Relationship Management.
The NOA strategic leadership masterclass was introduced by Yvonne Williams, NOA board member, and highlighted examples of best practice in strategic leadership in outsourcing.
Paul Bamford, Director, Logica, presented on the benefit of alignment from a supplier perspective, looking at sourcing.
Paul said: “It may sound obvious but knowing what you need is so important. Having an understanding of your requirements will make your supplier selection and ongoing collaboration a lot and easier and more effective.”
Answering the question, how will companies alter their sourcing mix in response to the stubborn economic downtown? Paul replied: “I predict vertical services will be serviced independently. Users will have access elements of services on demand with a pay as you go model.
“Remember, it is ultimately not the skills that make a great team member – it’s the ethics and inner belief in that individual.”
Paul’s tips on how to assess your suppliers.
1) Evaluate suppliers against their ability to drive outcomes against the needs
2) Know what you want through the eyes of internal stakeholders
3) Finally don’t select on what they can do for you today – as a bare minimum evaluate on their 3 year plan and trajectory
Perran Jervis and Bill Hull, Partners, TLT, presented next and looked at sourcing strategies from a legal perspective
Bill said: “Management is a critical part of multi-sourcing arrangements. Communicating objectives, planning, recruiting suitably skilled management, adopting technology to facilitate planning and management are all essential while communicating objectives throughout the planning of an outsourcing agreement.
“Sourcing strategies need to be chosen based on the following factors: cost efficiencies, improved service levels, flexibility innovation, best-in-breed. Communication is vitally important and making sure that business stakeholders, suppliers, advisors and the partnership are updated thought the selection process will be of great benefit.”
Derek Parlour, Head of Commercial, NRE, was the final speaker at the masterclass and presented a case study on matching outsourcing strategy with business requirements.
Derek said: “We needed suppliers to break our systems into smaller chunks - making sure the systems are scalable and best of breed for each was essential. We multi-source are entire operation which means it is easy for us to change providers. This is especially important when versatility and flexibility is crucial to the running of your business. Most of our contracts are for 12 months with extensions.
“However multi sourcing places a high degree of responsibility and management overhead on the client. Governance is more complex and you need to ensure there aren’t gaps between services and needs.”
To view the speaker’s slides from this event, please visit www.noa.co.uk
