Outsource Magazine Issue 25 - (Page 77)

Feature NOa Pathway Good Relations In the fifth and final article in his series on the NOA’s Life Cycle model and its role within the Pathway development programme, NOA Programmes Director Chris Halward examines relationship management: are you making the most of your outsourcing partnership? Chris Halward, NOA Pathway Chris Halward is Programmes Director for NOA Pathway, the NOA’s professional development arm. Chris is an associate tutor at Middlesex University, the body that accredits NOA Pathway outsourcing qualifications at degree and postgraduate level. R elationship management is a hot topic in outsourcing. Both users and providers are recognising the considerable value that arises from strong, well-managed relationships. Research has shown that relationship management can create a massive 40 per cent difference on a range of service indicators including cost and quality. Organisations that invest more in developing successful relationships, by for example ensuring that their relationship managers are well trained and qualified, consistently perform better than their competitors. The focus of outsource users is changing. To drive more value downstream rather than simply managing at contract level, users are managing at supplier level. This is not a subtle change. It requires a wholly different mindset and relationship culture; one of collaboration and trust rather than compulsion and conflict. Providers are also seeing that in a maturing outsourcing market opportunities are shifting from ‘hunting’ new clients to ‘farming’ existing clients. As such relationship management is becoming ever more critical. For providers, strong relationships mean: reliable margins developing opportunities to extend the relationship sustainable, predictable revenue streams that will underpin organisational value For the provider, relationships are strategic assets, and, alongside its people, are arguably its most valuable asset. The NOA have always maintained that the key to successful outsourcing is relationship management. Too often the focus of all parties is on the contract and operational design issues. Too little energy is put into relationship management. The results of this are failed outsourcing arrangements which have not met the expectations of the parties. When outsourcing arrangements do fail to meet expectations the reaction is to blame it on the whole concept of ‘outsourcing’. “There is too much outsourcing” is a common cry, followed by feverish activity to backsource everything in-house. Backsourcing in itself is not wrong: circumstances do change and doing things in-house may be the best sourcing solution. However, relationship management can ensure that outsourcing works. It enables an organisation to achieve the full potential of working with specialist outsource service providers. Best Practice There is no ‘one-size-fits-all’ approach. The NOA development programmes emphasise the need for individuals to consider best practice principles within the context of their own challenges before adopting a best-fit approach. Here are some best practice principles that characterise successful partnerships: Consendre mod eugait alit luptati sisisisit augait num iusti facidunt ipsumsan el eraestrud exerat ad onulla cor ing eumsandre ex elit “I don’t even like to use the word relationship. I don’t know what it means.” – Ron Silver atetue tet ulla feu feum niamconEm ea commodiam ad tem dolortio Utat lum quisim et, quissi.Volobore m iurero dolobore. www.outsourcemagazine.co.uk ● ●● ● 77 http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 25

News & Commentary
Making Contact
Taking the Chair
Clinical Outsourcing Strategies
New Worlds
To Share Or Not To Share?
Trends in Outsourcing Governance
The Next Big Idea
Smart Intelligence
Taking the ChairCracking the Wip
NOA Round-Up
Predicting Success
It’s Not The Contract.
Get Productive
Rigorously Agile
Good Relations
Knowledge Sustainability
Racking Up The Wins
Trust Me... I’m an Outsourcer
Top Ten
The Legal view
HfS Round-Up
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 25