In this section:

You are in: Home > Outsourcing > Outsourcing Resource Identification

Outsourcing Where to Start

Step 2 - Resource Identification

It is not just what you want to achieve but WHO you need to achieve it. Far too often charities make the decision that they must outsource without identifying the individuals that are critical to the process and the success of the arrangements.

Step 2 of the process is about understanding who within the charity needs to be involved in the decision making process but also later on in the implementation of the outsourcing arrangements and the management of the relationship.  Set out below are those who should be involved in the process.

Individual
Responsibility
When to Involve
Trustee
Strategic
Initial Thought Process & Final Decision on Provider
Senior Manager Responsible for the Area
Strategic & Relationship Management
At the initial outset
Senior Management Team
Overview and linkage into Strategic and Tactical Strategies
Pre Research Stage and throughout the process
Managers Affected by Outsourcing
Providing detail and setting full processes
During the discovery work to be undertaken to build the criteria for outsourcing
Staff
Provide view or opinion
Communication as to why you are looking at outsourcing as a solution
Stakeholders
Provide view or opinion
Communication if they may be affected by the change in processes or operating environment related to them

The normal reaction to the above list is "if I start involving all these people I will not move any further forward with understanding this is right for me".  That is why it is important to ensure that they understand their role in the process and that it is a process which decision will become apparent as to which way to proceed as more information becomes available.  The second reaction is fear that individuals will up an leave.  Lets face it if this happens then you were probably right to start looking at the outsourcing the process or function as the individuals know it better and will be better able to gauge what might happen to them.  The other thing to remember is that in the current economic environment it is much harder to move to a job that is paying more so this reaction though well warranted is one to not waste too much time on.  The final observation is do a I really need to involve all these people?  Our experience is yes! Without doing so you are at risk of causing problems later on in the process of understanding as well as ensuring everyone understands why you are looking at outsourcing. 

Now that we have identified who you need to work on the process of outsourcing you now need to focus back on the objective of what you are looking to achieve.   This was initial consideration for outsourcing that needs to be revisited this with those that will be involved as well as using it to structure the selection criteria. 

Next month we will cover this area as well as how they should be involved and what ensures a long lasting result when outsourcing.

If you would like more information on what to do at the start please contact us on 01793 554 204 or email marketing@charitybusiness.com.

 

"As a small charity, finding an organisation able to handle all of our finance and administration tasks was vital. Charity Business has met all our expectations and provided an efficient and professional service, allowing us to concentrate on developing and supporting our range of services to the charity sector.”
(Charity Technology Trust, Full Outsourcing and VFD Client since November 2004

Research findings

Mark Freeman, in response to an independent study, said "Our clients save an average of 40% on back office costs.  This could mean a total of £136m extra for charitable activities in the sector".

Shared Services Feasibility Study

A number of leading UK charities agreed to back research by Mark Freeman in partnership with business consultants Arthur Andersen, into the concept of ‘shared services’ for charities – resulting in the launch of Charity Business in 1999.

Summary of the project