Strategy > Business Objectives
Clarifying the Business Objectives
In many cases the business objectives for considering outsourcing will have been abundantly clear before embarking on a strategy project and will have been the impetuous for the project. Even where this is the case, it is still well worth while making the objectives explicit, checking for secondary undeclared objectives and testing the relative priority of the objectives.
Carrying out a significant restructuring of an organisation requires time, resources and support from its leadership. Their statement of business objectives should support the definition of strategy for the future state. It should also be the core for communicating the rationale throughout the change programme.
The objectives should answer the questions: What are we doing this for? What will the business get from making the changes? How will the changes make our business better?
Whether responding to changes in the market place or internal ambitions, typical objectives for outsourcing include:
- Improvement in the efficiency and/or accuracy of your processes or data quality
- Reduction in operating costs
- Avoidance of investment
- Capability to grow more rapidly
- Ability to deal with greater variability in volumes or contraction of business
- Introduction of competencies or culture that the business doesn't have and does not wish to, or is unable to grow internally
- Ability to focus the business and management attention on other areas by constraining the demands of the area in question
- The use of an external party to help force broader transformation
And don't forget the stakeholders
It is worth stepping back from content for a moment and thinking about process. There will be a set of stakeholders who you will need for approval of strategy, investment and implementation. Perhaps worse than basing your strategy on a set of objectives out of alignment with the needs of the business is that they are not recognised the appropriate set of stakeholders, and thereby support for the project dissolves when the challenges of implementation become known.