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Über dieses Buch

In her classic book Vested Outsourcing , Kate Vitasek identified the top 10 flaws in most outsourced business models and shows organizations how to rethink their outsourcing relationships in a way that will lower costs, improve service, and increase innovation. This revised edition includes updated case studies and a new chapter based on Dell.

Inhaltsverzeichnis

Frontmatter

Introduction

Introduction

No other question encapsulates the drive for continuous improvement permeating today’s business environment. It is what drives people like Albert Einstein and Thomas Edison to challenge the status quo to create not just better products but also better solutions. It is what drives business people to solve complex problems to meet customer needs.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Diagnosing The Need

Frontmatter

Chapter 1. The Whole Nine Yards

In 1994, I was given the challenge to develop a worldwide outsourcing strategy for Microsoft’s marketing programs. At the time, Microsoft was a $4 billion company working to realize Bill Gates’ vision of putting a computer on every person’s desk. In order for Microsoft to achieve this objective, it needed to reach as many people as possible through as many venues as possible, so marketing was a big deal at Microsoft. The company was hiring the best and brightest marketing talent in the business and the challenge for them was to come up with new ways to reach customers worldwide. This resulted in creative new “Marketing Programs” as a key way to reach potential customers. More than a dozen such marketing programs had emerged, each needing a different set of operational requirements. Some of these included:
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 2. An Outsourcing Primer

Business outsourcing as a concept has existed for decades. Many credit the technology services provider EDS as the pioneer in popularizing the term outsourcing several decades ago to describe its service to run and maintain large mainframe computers and data centers. Others say the term has its roots in the 1970s movement to have outside companies manufacture some or all of product production. Still others say outsourcing is just a variation of sourcing goods and services. No matter the derivation of the word, outsourcing is firmly part of today’s modern vocabulary.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 4. Ten Ailments of Traditional Outsource Relationships

Nearly all outsourcing arrangements have room for improvement. Outsourcing as a large-scale business practice has not been around long enough to work out all the kinks. Many companies operating with good intentions jumped in without a full understanding of how to outsource correctly. The result: outsourcing deals structured with fundamental flaws in the business model and the relationship. As noted in chapter 2 , the flaws can lead to perverse incentives: direct negative or unconscious behaviors that drive unintended consequences. These perverse incentives lead to ten common outsourcing ailments.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Setting The Rules

Frontmatter

Chapter 4. Changing the Game: The Rise of Vested Outsourcing

Is there a better way? Can companies develop an outsourcing model that prevents the ten
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 5. The Game-Changing Economics of Vested Outsourcing

It is much easier to say win-win than to execute win-win. People play to win. From grade school on we are conditioned to believe that there is always a winner and a loser. To have two winners on different teams must require some new math or letting someone win. For the truly competitive, giving in or sharing does not come easily. After all, there is only so much pie to go around.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Vesting The Partnership

Frontmatter

Chapter 6. Lay the Foundation

The Vested journey begins well before the initiation of the contract and transcends the contract itself. In conventional outsourcing, the tendency is to think that once the contract is signed, the job is completed. But this is essentially like giving birth and thinking the job is done. Parents are aware that, as painful as delivery may be, in many ways it is the easy part because it has a beginning and end. The next 18 to 21 years of child-rearing are when the character of the relationship is defined, refined, and deepened. Think of Vested as a lifelong relationship, not as a short-term project.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 7. Understand the Business

The initial step in this phase is to establish a baseline by documenting the as-is state of the outsourcing or business process. A good baseline will help establish the Desired Outcomes, the single most important part of the Vested business model. It is also the starting point for establishing the business case to justify the change financially and for developing contracts and agreements. A good baseline will provide a solid understanding of improvement opportunities and help to identify what the cost of a program will be—a key for any service provider signing up to take risk under a Vested agreement.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 8. Align Interests

The transition from research to action now begins. To this point we have focused on understanding the current situation, current processes, marketplace, and opportunities. Now it is time to begin planning how to create value by implementing process change and realigning workloads.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 9. Establish the Contract

The Five Rules of Vested are presented in chapter 4, and in subsequent chapters we’ve described elements that will help guide parties through an implementation process to craft a Vested agreement based on the rules. The 10 essential elements of a Vested agreement are described in detail in The Vested Outsourcing Manual.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 10. Manage Performance

The Vested agreement is in place. The work has been transitioned. You are ready to hand over everything to the new service provider and walk away, because you are done, right? Wrong! Remember what we said about giving birth? Outsourcing and other business relationship programs—like babies—don’t grow on their own.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 11. Getting to We: A New Negotiating Model

Chapter 4 discussed adopting the Vested what’s-in-it-for-we (WIIFWe) mindset. Chapters 6–10 describe the five steps of crafting a Vested agreement and governance structure. If you want to adopt a Vested relationship where do you start? How do you focus your negotiation to lay the foundation for a WIIFWe mindset? The answer? Focus on the relationship, not the “deal.”
Kate Vitasek, Mike Ledyard, Karl Manrodt

Chapter 12. Going the Whole Nine Yards: The Dell—GENCO ATC Vested Journey

At this point the faithful reader—and outsource practitioner—may think, “It all sounds fine in theory, but does the Vested system really work in the real world?” Is it possible to “get to we” through true collaboration, trust, and shared values? This final chapter, an overview of how two world-class companies came to Vested and implemented the Vested model, answers that question with a resounding yes.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Conclusion

The goal of this book—now in its second edition—is to encourage outsourcing professionals, including those in the companies that outsource and those at service providers, to take Einstein’s advice and think beyond conventional transaction-based outsourcing business models in search of a better way to outsource.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Part IV

Frontmatter

Resources and FAQs

There is a better way, a Vested way to do business and build relationships that create value for your company, your partner companies, and the world. And it’s easy to learn how by accessing the extensive array of resources, courseware, and support service available on the Vested website at http://www.vestedway.com/resources/.
Kate Vitasek, Mike Ledyard, Karl Manrodt

Backmatter

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