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Old 29-01-2007, 01:26 PM   #2 (permalink)
Calis
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Crucial outsourcing ingredients

Why farm out a business function? The answer to this is in why you eat out

TODAYonline, Business, Monday, January 29, 2007

Succeed with John Bittleston
succeed@newstoday.com.sg

Outsourcing vermin control is sensible. They are experts; you are not. It's not something you have to do a lot of, and a regular, disciplined approach will keep the potential problem under control.

What about outsourcing other things, though? It's become very fashionable. Is it a good idea?

What exactly is outsourcing? It's giving a job you had previously done to another supplier. Why? Because he has more specialised staff and experience and will do a better job; because it will be cheaper for you. Maybe because you won't have to take on the payroll people you might later have to let go and pay redundancy money to.

We need to be very clear what it is we are going to outsource and why. Physical functions are relatively easy to outsource. You don't try to generate your electricity or process your water. It would clearly be foolish to do so — unless, of course, you are a huge power-hungry industry or a massive brewery needing a lot of fluid throughput.

Let's look at something we regularly outsource and keep under our own control: Food preparation. We buy semi-prepared food for the house; we send out for pre-prepared food (take-away); we eat out at restaurants and hawker stalls.

We do this for convenience, sometimes (though seldom) for the low prices, for a break from the drudge of fixing a meal, for a chance to meet together for fun. Each reason has its own rewards. But in our heart of hearts we know Mama's homemade is always the best, the most nourishing and provides the greatest family cohesion.

I've used the analogy of the home because I think that, even though home is not a business, it provides lessons about outsourcing. Certainly, the popiah skins from the master are likely to be best, but, generally, homemade food is tops. Why? Because it has the care, love, attention, devotion and skill of someone to whom the production of a great meal means so much.

When we "outsource" feeding the family, we lose a little of the get-together feeling, some of the cohesion of home, a small part of the fabric of our filial-based society. No, of course I'm not suggesting we shouldn't eat out or bring home a take-away. Both are a wonderful part of our exciting society. I do a lot of both myself. I am suggesting a balance, at home and in business.

How would I define the line between what is sensible and what is not?

Easy. I ask one question: Will what I am about to outsource — when added to what has already been outsourced — result in my losing just a bit too much of the culture, style and cohesion of the business? When it is placed elsewhere, will my company still be seen as the business I want it to be? Or will it become a catalogue-holder, a promoter, an agent rather than a provider, producer and carer?

Will the money I make or save from outsourcing contribute more to the business?

The big car companies learnt a long time ago that when teams on the production line saw the assembly of each car all the way through to completion rather than just repetitively dealing with one small stage of it, they became more efficient, took more pride in their work, were happier at it, and ended up with much more reliable cars. They could point to what they had achieved.

A great banquet is made up partly of the cook's skill, mind, passion and soul. A great business has the same ingredients.

John Bittleston mentors people in business, career and personal matters. For more information, visit www.TerrificMentor.com
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