“Nine times out of ten, most culture clashes start off being people based,” says Susie West, founder and chief executive of Sharedserviceslink.com.
Not dealing with culture often poses a risk to the huge investment required for outsourcing relationships. “Because of the significant upfront investments, you want to make sure that when the CFO signs that cheque, they are handing their business functions over to somebody that could do it better, not just cheaper,” adds West.
Put simply, if outsourcers have to fight the culture to get anything out of it, they simply won’t be as efficient, potentially meaning a prematurely terminated contract.
“You really have to have the right mind-set right from the start, because you are entering into a ten-year contract, and it can really scar the relationship if there are mistakes made from the offset,” she adds
Understanding the background of the organisation, where they’re from, what their values are, and how they communicate will ensure that hurdles are overcome early on. “We won’t always just take what clients are saying on face value,” says Anita Bain, senior partner at Sagacity Solutions.
“Things are lost in translation; sometimes the client says one thing and it means something completely different to us.”
Another area that should be considered, according to Bain, is the dynamics of the company, to ensure you involve the right mix of people. “It might be a bit controversial, but if you have a 60-year-old in a pin-striped suit and a strict environment, there’s no point putting a 20-year-old in there that’s going to run wild,” explains Bain.
She cites examples such as adapting to dress codes, adhering to gender mixes, and considering compatible personalities as helpful approaches. “You will sometimes have a stakeholder who is extremely aggressive, or you’ll have the other extreme where they are very blasé about it, so we try to ensure the consultants we place actually work to the client’s needs,” explains Bain.
Working with an aggressive company can be difficult, but West suggests communication tactics such as regular meeting with senior people. This will make sure that channels are always open between the outsourcer and the client, and the conversations relating to the relationship aren’t bogged down by the politics.
“You might hide behind claims of a systems problem, but it’s usually because you’re missing the communication that is so massively required at every touch point throughout the relationship,” says West.
Specifically, West refers to asking challenging questions, such as what people are expecting from the outsourcing relationship, what it means to various stakeholders in the company, and how the company will react when having an outsourcing component within that delivery infrastructure.
“From that embryonic thought, right the way through to the sorting process, selecting a partner, contract delivery, and all these various milestones, the absolute critical component of it is communication.”
Another critical element on the client side for securing a smooth transition is governance.West emphasises the importance of mapping out everything that’s going to be transitioned, the expectations that are expected of the outsourcer, who is responsible for what, and where they need to be [onsite or offsite].
Other important considerations are at what point will the processes or activities be handed over, is there going to be a shadowing that takes place – and most importantly, who is accountable when something goes wrong?
“I can’t overstress this because I believe when outsourcing has failed in the past, it’s because companies have outsourced a whole tonne of responsibility to an outsourcer, who actually hasn’t taken on that responsibility, they’ve just taken on tasks,” says West.
“It’s that ownership, transition and governance piece – so if you can get all that wrapped up, agreed on, and signed off you’ll be in good shape.”
Bain cautions outsourcing companies who expect a standard “lift and shift” model, where there will be no impact on the organisation.
“That’s absolutely not the case… You need to make the right alignments.”
The best tactic is to be realistic and honest about what you need to deliver the best outcomes, rather than skirt around the issues.
“I think outsourcers think it means they won’t get the business,” says Bain. “But it’s never done us any harm.”
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