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Smarter Outsourcing Robert Morgan

Smarter Outsourcing By Jean-Louis Bravard

Smarter Outsourcing by Robert Morgan


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Summary

Enables you to structure your outsourcing deals for sustainable long-term success. This book explains how to make the decisions effectively, taking account of complex management and people issues as well as financial imperatives. It shows how to ask the right questions and make smarter decisions at various stages.

Smarter Outsourcing Summary

Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships by Robert Morgan

Outsourcing is now a central issue for companies large and small, and the market size goes on expanding. But, few executives really understand how to go about deciding what should be outsourced, how to do it, and how to manage the various stakeholders.

This book fills a major gap in the middle-high-end of the market for a book that shows senior executives how to decide what to outsource and then how to do it, taking into account the "human side." The book aims to ensure that more outsourcing deals are structured for long-term success, and shows that this depends on initial and ongoing executive commitment and sponsorship by both the client and the providers.

The authors are both global leaders in outsourcing consulting, have set out to write a fast, well-paced read appropriate for a variety of industries.

Smarter Outsourcing Reviews

"...brings a breath of fresh air to this topic" - Professional Manager, September 2006

" there hadn't been a comprehensive handbook written on the topic until this one came along a very welcome and necessary addition to any management library the authors both have a significant pedigree in the outsourcing business a highly valuable reference source for anyone It is thorough, clear and well-referenced." - Personnel Today, July 2006

"Admirably clear and execution-oriented. This book is thoroughly recommended." The Director Magazine

"A most comprehensive book guiding any executive or stakeholder through the complexity of outsourcing and transformation."
Trevor Matthews, Chief Executive UK & Europe, Standard Life

"Bravard and Morgan explain persuasively, and succinctly, why any institution should consider outsourcing as a modern and effective management tool."
Howard Davies, Director of the London School of Economics

"Striking the right balance between internal and external resources in all the major functions of your company is an issue all managers should really focus on today. We should dedicate our skills and energy to those areas where we can really make a difference. The rest is a distraction. This book will be very useful to help you with the decision-making process."
Olivier Fleurot, Managing Director, Financial Times

"....provides valuable insights for executives contemplating an outsourcing strategy."
Gay Haskins, Director External Affairs, London Business School

"We can benefit from the hard lessons learned by the trailblazers. Morgan and Bravard bring decades of practical experience to the table and provide a comprehensive view of the potential benefits, challenges and pitfalls of outsourcing"
Till Guldimann, Vice Chairman, Sungard

"This book is for the worried CEO and CFO, who are on the verge of making the final decision to outsource and pondering their first steps with trepidation."
Emanuel Daniel, Editor, The Asian Banker

"Every once in a while a management book comes along that makes you rethink basic management tools. Smarter Outsourcing is one of those books and will sit on many CXO desks and board rooms "
Victor Chu, Chairman, International Chamber of Commerce (ICC) Commission on Banking and Insurance

About Robert Morgan

Jean-Louis Bavard is Managing Director, EDS Global Financial Services Industry.

Robert Morgan is former head of Morgan Chambers plc, the outsourcing consultancy

Table of Contents

Foreword: A letter from the authors

Outsourcing: the sharpest tool in the box

Outsourcing's albatross

Why we have written this book

From observation to road map

Power with responsibility

About the authors

List of abbreviations

Acknowledgements

Introduction: Why you know how to do this

What do you mean by outsourcing?

Our definition

Using your M&A skills to best advantage

Six principles for outsourcing success

Our approach in this book

1 Clear deal and strategy alignment

Seeing beyond the trigger

The wider picture

A secret shared

In a cul-de-sac

The decisiveness to move

plus absolute clarity

How bold do you want to be?

A question of emotion

Driving the deal

Talking to the enemy?

Internal v. external sourcing

Sourcing v. business process outsourcing

BPO v. business transformation outsourcing

A CEO self-test for BPO

2 Mitigating risk

The surrounding stakeholder context

Communicating the nuts and bolts of the deal

Preparing for the exit before the start

Reasons to split

Detailed risk factors: into the schedules

Protecting intellectual property

Managing multiple suppliers: 'best of breed'

Defining the interconnects

The prime contractor route

Thinking the unthinkable: coping with meltdown

Risk questions for suppliers

Onshore or offshore: risk or economics?

Not a case of all or nothing

Offshore providers' onshore presence

3 Clear shared value

A 'free trade' model or protectionism?

Achieving a win/win

Building on trust through shared expectations and objectives

The root causes of loss

Staying in line

Avoiding 'contract squeeze'

Understanding success

and not overselling it

Where has that A team gone?

Getting it in black and white

The value of consistency

Procurement v. relationship building

Third-party coaching: extracting value or destroying it?

Pre-negotiation workshops

Evaluating the business case through M&A principles

Stress-testing the value proposition

Moving forward

4 Value-based negotiation

Procurement or partnership?

Creating a clear two-way view of strategy

Unasked questions

Lining up the goalposts

Discovery: beware nasty surprises

Understanding assumptions and motivations

Regular project updates as with M&A

Can you work with these people?

The human factor

Internal SLAs: a step in the right direction

Controllable, not autonomous

From the customer's viewpoint

Avoiding legalese

Revisiting the value case

even to breaking point

Homeopathy or surgery?

Review and review again

Alignment for a win/win

5 Moving to the new way of thinking

Openness or secrecy?

Setting the pattern of communication

A coherent story

The role of FAQs

Change + uncertainty = pain

Governance and controls: be holistic and rigorous

Documenting the start and end state

Contract v. relationship

Avoiding winners and losers

Crystallizing the benefits

The supplier's revenge

Maintaining the balance of value and pain

What gets left behind?

Leaving dysfunction behind

Reasonable retention not too much

Defining and monitoring roles

Making alignment resilient

Linkage with users' interests

User perception is reality

Using intermediaries for early benchmarking

External industrial metrics

6 Realizing the benefits

Thinking ahead?

Defining the role of he retained team

Staying in command

Ten key competencies correctly positioned

Clear responsibilities in a shifting environment

Building maturity

aided by continuity

Metrics for improvement

Becoming a well-oiled machine?

Benchmarking BPO: a do-it-yourself approach

SLAs: meaningful outputs

Towards metric-based gain sharing

A hierarchy of measurement

Relationship and contract management: the role of governance

Service beyond KPIs: the willingness to flex

A return to 'grace and favour' projects?

Brand damage: consequential losses by another name?

Ongoing access to innovation

The power to escalate

Managing future risks through flexibility

Mutual openness for mutual benefits

The role of 'trust brokers'

Suppliers' executive: the need for maturity and vision

Towards a joint approach

Managing the investment markets

Executive challenges for suppliers

7 Conclusion: A smarter executive tool

A sourcing revolution?

At the frontier

Societies in competition

The philosophy of sourcing

The supplier of the future

and the sourcing 'web'

Creating complementary flexibility

through the new generation of suppliers

Making strategy cut both ways

Hybris culture not bastardized culture

From cost, to quality

to innovation

A structure for improving quality

Breaking the gridlock

Shared benefits from innovation

A sharper tool

From deal to life cycle

Underwriting the responsibilities

The future: strategy, sourcing and shareholder activism

A global shift

Investor vigilance extends from M&A to outsourcing

Shoulder to shoulder

8 Are you ready to outsource?

9 Five key areas to focus on

Specialist section 1: Financial engineering

Specialist section 2: Legal issues

Specialist section 3: Communication issues

Specialist section 4: Human resource issues

Specialist section 5: Taxes

10 The outsourcing experience

Case study 1: Fin-Force

Case study 2: GECIS

Case study 3: J. Sainsbury

Case study 4: Aegon/GRE

Case study 5: BP

Case study 6: Nextel Communications

Case study 7: JP Morgan

Case study 8: BT/Accenture HR outsourcing

Index

Additional information

GOR005335282
9780273705604
0273705601
Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships by Robert Morgan
Used - Very Good
Paperback
Pearson Education Limited
2006-04-06
248
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in very good condition, but if you are not entirely satisfied please get in touch with us

Customer Reviews - Smarter Outsourcing