Higher levels of confidence. Evolving the global operating model is no longer a corporate advantage but rather a competitive imperative. Almost every corporate agenda includes challenging the current business model just to keep up with the market. Most organizations acknowledge this, as the concept is no longer met with “someone else first, we’ll follow,” strategy. The managements now undertake the decision to change the operating model with increasing levels of confidence. It is now “safe” to mention the O word, invest in a trip offshore, or attend a shared-services conference in order to evaluate alternative services-delivery strategies.
Heightened management focus. Structuring a new global operating model is now more often part of an executive job description at the C-suite level — CEO, COO, CAO or CFO. This top-of-the-house ownership gives latitude to query, explore, design and evaluate a broad range of services options, rather than revert solely to a procurement department led sourcing strategy to solve for the most readily available option.
Better understanding of the degree of change. Corporations are beginning to take on board the fact that introducing a new operating model is not a one-off event but rather represents radical and ongoing change which is their sole responsibility. Forcing an agenda by taking business lines and people with the program is the difference between success and failure. Transforming an organization is no longer seen as announcing a service modification on an internal website, or a task ceded to a provider, but rather as a daily hand-to-hand combat incorporating a robust program of listening, finding solutions, negotiating and using communication skills.
Emerging internal competencies. Although there is no recognized construct for sourcing, implementing and managing services delivery, the customer has now gained enough experience from first attempts at globalization to broadly understand competency requirements. In some corporations the sourcing or technology unit houses enough of these skill sets to seed a new organization, while others must formally or informally cobble together expertise from a range of corporate departments, such as procurement, corporate development, finance, operations and mergers and acquisitions.
Skill sets critical for effective services management are now being specified in job descriptions. As staff experience is evaluated to identify any onshore or retained organization, customers know that process-management skills may have less corporate currency than program-management prowess — the ability to manage providers’ or captive operations’ outcomes. Relationship and commercial managers, with skill sets interchangeable with those valued by the provider community, are now recognized as more and more important.
Why Does the Market Need Good Customers?
Good customers make informed decisions and those decisions in turn ensure delivery performance. Investing in a services program appropriately resourced and sponsored by the business is key to success. Too often corporations use a sourcing process as their initial foray into the world of global services delivery, trying to shortcut key tasks such as scoping, developing a business case, gaining the right level of sponsorship, assessing the appetite for change and designing the best relationship construct. While a good sourcing process incorporates these steps, unless the business owns the opportunity from concept through the entire implementation, benefits will most likely be illusory.
