If you’re implementing an outsourcing project, you want it to be a success. Executing an effective transition plan is the key to achieving outsourcing success. The transition affects every aspect of outsourcing. So you must get it right.
Typically, a transition plan starts at a contract’s beginning and continues until it reaches its “steady state” phase.
When well executed, it sets the governance model, service levels, and framework for outsourcing projects.
In other words, it lays the groundwork for execution—the project’s nuts and bolts, if you will.
More important, it unlocks the value of outsourcing. Not making an effective transition cripples the project.
Executing A Transition Plan Is Challenging
Executing an effective transition is challenging. Make no mistake about it.
Research shows that one-third of all transitions fail. Meanwhile, two-thirds of executives surveyed said they experienced major transition problems.
So executing a transition isn’t a snap.
Inexperience hurts many transitions. So does no transparency, poor communications, misaligned expectations, and inadequate reporting
And since transitions are often one-time things, not many companies keep people with the right skills on staff.
More Effort Than Expected
In addition, managing transitions typically require more effort than you think—even if your project isn’t extensive.
In fact, studies shows that 63% of managers surveyed said that managing transitions required more effort than expected.
Without that extra effort, many outsourcing projects would fail. So if you’re planning on outsourcing tech support, expect the transition to need more effort than you first think.
Below are several other common transition “lessons.” Use them to help you avoid the transition minefields common to outsourcing projects.
Do Your Homework First
Studies indicate that 75% of companies polled prepared poorly for the transition. Preparing for the transition is a must. So make sure you do your homework first.
Transition – Plan Jointly With Provider
Planning jointly helps. It’s a trust builder. So work with your provider to develop a master transition plan—one that clearly defines tasks, roles, and responsibilities during the transition.
Managing The Transition Plan Is A Full-time Job
It takes more than just reviewing reports to execute a flawless transition. So dedicate the right resources to managing the transition. Doing so smoothes things out, cuts costs, and positions the organizations as collaborators.
Assign The Right People for the Transition Plan
Assign the right people to manage the transition. Avoid letting politics cloud the selection process. Instead, build the transition around the people with the skills to execute it.
Set Up Tracking And Reporting Early
Install tracking and reporting early. This is a no brainer. Doing so enables you to root out problems before they fester and eliminate them.
Executive reporting is also key. It helps everyone understand the importance of performance and the project’s progress toward achieving key business objectives.
Action Point: Determine what tracking and reporting tools you have. Research additional tools and acquire them if you can.
Establish The Right Governance Processes
Governance, like tracking and reporting, is a key to the transition. So set up governance procedures to send timely reports out internally. Make sure key members of the provider’s management team see them as well.
Give Proper Attention To Relationship Management
Good relationship management is critical. So is communication. Yet some managers pay little attention to these things. Give them their due. They can help you identify problems early and snuff them out quickly.
The transition impacts every aspect of an outsourcing project. It lays the project’s groundwork, determines its success, and helps realize its true value. Remember our “lessons” about transitions and you’ll execute a flawless one.
Action Point: Develop a transition plan for your outsourcing project. Use a transition methodology and establish governance processes within the plan.
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