Fair Process in Outsourcing

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    I read Blue Ocean Strategy during a recent week away from the office. This is the 2005 book by W. Chan Kim and Renee Mauborgne about "how to create uncontested market space and make the competition irrelevant." It profiles companies like Cirque du Soleil and winemaker yellow tail and lays out a framework for setting your organization so far away from competitors as to make them weep with amazement.


    I walked away from the book wondering if this were simply another example of Monday morning quarterbacking — looking at already-wildly successful companies to explain their success rather than being able to evaluate potential company directions to sort out whether they’re heading into a blue ocean and pursuing a fool’s errand.


    At any rate, what I wanted to share about the book was a chapter on "the power of fair process," because I deem it relevant to a successful outsourcing effort, or for that matter any endeavor where people have to adapt to changes around them.


    The idea of fair process is that you need to build it into your strategy. Without it, you’re doomed to fail.


    What is fair process? The authors explain that it creates people’s buy-in upfront: "People trust that a level playing field exists. This inspires them to cooperate voluntarily in executing the resulting strategic decisions."


    Fair process has three principles: engagement, explanation and clarity of expectation.


    Engagement means "involving individuals in the strategic decisions that affect them by asking for their input and allow them to refute the merits of one another’s ideas and assumptions." This shows respect for the individual. It encourages better thinking on the part of decision makers. And it results in a "greater commitment from all involved."


    Explanation "means that everyone involved and affected should understand why final strategic decisions are made as they are." This shows that managers have paid attention to employees and taken their opinions under consideration, whether or not the ideas have been rejected or integrated into the final decisions.


    Expectation clarity "requires that after a strategy is set, managers state clearly the new rules of the game."


    To achieve fair process, write the authors, "it matters less what the new goals, expectations and responsibilities are and more that they are clearly understood."


    The chapter includes a great example that I won’t go into here. But I will say that I wish I were a communication expert. I’d be golden. (Although I’m in the communication business as an editor, that doesn’t make me a great communicator. Far from it.)


    Being able to appreciate the emotional aspects of business decisions — especially ones that can be as filled with turmoil as outsourcing — means you won’t forget that people are human beings — not FTEs, not "labor," not "human resources." Getting their buy-in, as difficult as it can be, is essential to succeeding in transforming your operations.


    We’ve covered communication on Sourcingmag.com. Here are a few stories related to the topic.


    "How To Evaluate Outsourcing Sensitivities in People, Products and Processes"
    http://www.sourcingmag.com/content/c060920a.asp


    "Culture Notes: Change Management and How It Can Help"
    http://www.sourcingmag.com/content/c060529a.asp


    "Outsourcing with Honor: Personnel Matters"
    http://www.sourcingmag.com/content/c060315a.asp


    "How a Giant Utility Is Transforming Itself with Outsourcing"
    http://www.sourcingmag.com/content/c051018a.asp


    "How To Communicate When You’re Outsourcing"
    http://www.sourcingmag.com/content/c050831a.asp


    "Sun Microsystems: Finding Flexibility at a Big Company"
    http://www.sourcingmag.com/content/c050630a.asp


    But we’d like to run more. If it’s your specialty, let me know. Perhaps you have some wisdom and experiences to share for getting fair process right. Let me know at dian (at) sourcingmag.com.


    In the meantime, pick up a copy of the book. It’s a quick read and offers plenty of fodder for thought.