I recently wrote about proactive metric management (here) and the impact it can have on your business.
I’ve seen and heard of cases where companies say “we always say yes, then figure out how to do it.” Well, saying yes all the time seems right, its very customer centric. But saying no sometimes is the right answer. But how do you know if you’re not proactively managing metrics and you resort to using rock, paper, scissors to support decision making in your company?
This is especially true as your company grows. The smaller you are the closer everyone is to the center and has a better insight into what’s important. But as the company grows as a result of success, it becomes increasingly harder to keep everyone aligned. And, as the business grows, there are more “opportunities” created out of all the changes going on. Opportunities to make or break the company based on the decisions you make at that momemt when quick action is required.
If you’re like most, you’re now trying to do this across a distributed environment, so understanding the impact of individual actions gets even harder to understand. The only solution is to bring objectivity back into the response process itself. To respond effectively, people need to collaborate on various what-if alternatives to see what’s possible. Then they must be able to compare those proposed action alternatives against the metrics that are critical to the business to ensure their actions are objective, fact-based and not having to resort to rock, paper, scissors to decide what is right.
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The white paper talks about analysing the cost of out sourcing, but my view is that it is not throwing any light on capital invesment needed if we do not out source, also the reduction in rejection levels inhouse and outsource saves lot of value , because we get 100% OK material or we pay only for 100% ok material only, i request to Author of this white paper to give his valuable thought on this aspect of out sourcing
with Regards
AD Pole
Manager Commercial
NRB Bearings.Ltd
Mumbai(India)
I agree there are a ton of issues that go into making the determination of whether to outsource or not (I know the folks at Technology Forecasters Inc actually do quite a bit of work in helping companies build the business case and analyze these issues).
The point here was not to evaluate the decision to outsource per se, but to focus on the implications of dealing with ever present change within an outsourced environment. While the ideal scenario would see these considerations brought into the outsourcing decision criteria, my experience has been that it just isn’t the case today.