Outsourcing: Manage the People and the Changes Generated

(10708) Michael Corbett says:

The initial knee-jerk reaction of most people to news of an impending outsourcing arrangement is: “Job losses!” That’s unfortunate because the impact that a new outsourcing arragement can have on employees is actually much broader than that. Instead, outsourcing can create new opportunities for people to grow, to gain new skills and to advance their careers. Managing the impact of outsourcing on people should, therefore, be a management priority.

The key to easing the transition to outsourcing is for managers to communicate what’s happening and why effectively. There are nine specific points managers need to communicate to their employees:

1. Why outsourcing is needed at this time: the compelling reasons and the business case for it.

2. The consequences of doing nothing: what will happen to your organization if you don’t act now.

3. The change tools and techniques which will be utilized: whether it will be structured as a merger, acquisition, divestiture, partnership, etc.

4. The long-term role of outsourcing: why it is the right tool for your organization to grow and move forward.

5. The benefits and implications for your organization: how outsourcing will enhance competitiveness and more.

6. The benefits and implications for your customers: in terms of added value and other tangible benefits.

7. The benefits and implications for employees and the general community: how outsourcing will affect them.

8. Timelines: when decisions will be made, when implementation will occur, how long people will have to adjust or even to make suggestions.

9. Metrics for success: how the organization will know the objectives have been met.

Keep in mind that from an employee’s perspective, all change is personal. First and foremost they want to know what the new arrangement will mean for them. They’ll also want to know that the management isn’t acting in a random fashion, but has a definitive plan in place. If you can demonstrate by what you say and do that you’re committed to creating positive employee outcomes through the use of outsourcing, you’re halfway there. If employees can be shown the new arrangement will actually create new career opportunities for them, they will embrace the idea enthusiastically.