A new report from award-winning benchmarking, sourcing and transformation advisory firm, Alsbridge, Inc., describes how to assess your sourcing strategy to ensure a successful sourcing transition.
After you have developed a sourcing strategy to engage a capable service provider and hired a reputable advisor to consult and guide your team through the sourcing strategy, the real work begins. In two parallel streams you will need to:
- Negotiate a sound contract that will support the relationship and withstand three to five years of peaks and valleys
- Plan for the transition of people and services, choosing the approach that will minimize disruption to the business and best support the stated sourcing strategies and objectives
Each approach to successful transition should undergo detailed review by the Steering Committee for the sourcing program. Analyzing the pros, cons and potential impact each approach may have on the business will establish an understanding among senior leaders and set preliminary expectations before making such an important decision. The optimum transition approach may come from your selected partner if the relationship is already established and the executive team is comfortable the partner has your best interests in mind.
For each option, the steering committee should:
- Analyze the in-scope services in terms of criticality to the business. Prioritize the services based on your business tolerance for delays and interruptions, placing those with least tolerance as highest priorities.
- Review the business calendar for the months during and surrounding the proposed transition period. Allow for scheduled events that may be completing as transition begins, and the same for the end of the schedule. Considerations should include major project releases into the in-scope service area.
“Regardless of the approach, creating a thorough service inventory up front is very important, followed by detailed analysis of the impact and risk associated with each item,” says Alsbridge founder and CEO, Ben Trowbridge. “Only when you have agreement from key decision makers can you proceed with confidence and assurance that your business customers are prepared to support the transition effort.”