What does an effective change management process entail? Why is change management a key to successful outsourcing? Find the answers in this article.
An increasing number of companies lean to outsourcing to strengthen their core-business focus while increasing the efficiency and quality of their non-core activities.
With outsourcing comes change. Change can be a source of disruption for employees, the execution of business tasks and the organizational culture. To get a successful start to an outsourcing relationship a well carried out change management process is required.
Such a process can minimize risks related to outsourcing and ensure a smooth transition.
The role of change management in outsourcing
Change management is a process that runs in parallel with the outsourcing project itself and deals with the people side of the service outsourcing project. This process includes activities to communicate the change, manage emotions and get involvement.
The change management process has three goals:
- Ensure that the outsourcing project is implemented as expected with no disruptions to the services provided.
- Maintain or increase the employee engagement and productivity in both the outsourced service function and in the core part of the organization – during and after the project.
- Maintain a good working relationship between the outsourced department and the rest of the organisation during and after the outsourcing-related transition.
3 keys of a great change management process
To meet the change management goals, a structured change management process that increases transparency, decreases insecurities and disruptions and grows employee engagement is required.
As KPMG found in their recent Pulse Survey, this process; “rests upon embracing the needs of the employees involved and by acknowledging the views of people impacted by the changes.” Despite many organisations and business leaders put greater focused on the “harder” topics such as redesign of processes and defining the key KPI’s to monitor.
To structure a successful change management process that embraces the needs of the employees and secures a healthy organizational culture, the following considerations have to be taken into account.