Is It Wiser to “Make or Buy” Talent?
This is always a conundrum for corporate human-capital managers. Institutional knowledge is critical when implementing major change programs such as global services, but can the organization train talent fast enough to meet program demand and deliver sustainable benefit from services globalization? On the other hand, an “outsider” with bright ideas and the requisite skills may not know where all the skeletons are buried, making change that much more difficult to achieve.
Often, sourcing, transition and management fall to the sponsoring function, rather than to those who have the expertise to source and manage these initiatives in a programmatic way. The right skills are sometimes seen as a “bolt-on” for executives, rather than as a core discipline.
This thinking is changing as organizations begin to appreciate that there is much more to achieving value from global services delivery than simply negotiating labor arbitrage.
“It takes a significant shift of mind sets, and to some great degree, a significant shift in skill set to be able to make that transition,” says Deutsche Bank’s Margel. “People who struggle more with it are those who, for example, have been accountants for 20 years or a purchaser for 20 years, and are now suddenly being asked to manage the process as opposed to delivering it.”
The executive trial by fire is far from over. Importing global services management talent from the outside is one way to douse the flames, but it’s also expensive to recruit and retain this expertise. And a good corporate fit is not a sure fire bet.
P&G, one of the early adopters of distributing work globally, is bucking the trend of hiring outside expertise by looking within its ranks to develop global services management talent. P&G is investing in in-house training for employees seeking to expand their depth of knowledge about services or project management.
Metz says the $68 billion, consumer-products giant, must develop managers and project leaders with the following key skill sets, which include, but are not limited to:
• People who are skilled or comfortable working in a “networked,” globally distributed environment
• The ability to manage projects in a multisupplier geographically dispersed environment
• Relationship-management skills that can be used to effectively manage third-party service provider relationships.
Some skills are hard to gain through training. “I think one of the key things required to be successful,” says Metz, is “the extent that people can adapt to the kind of additional rigor required in to work in this kind of environment.”The “rigor” Metz refers to involves, in his words, “understanding the unique needs of process design as it relates to working cross company and geographic boundaries.”
To put it a little more directly, American executives often lack experience at managing in highly process-driven environments — especially those found in global delivery centers.
