Craig Russell

275 Route 10 East, Suite 220-247 Insourcing

Succasunna, NJ 07876
Office: 973-601-7664 Transition
Mobile: 201-859-2332
Twitter: @OrgChangeCoach
[email protected]

INSOURCING OUTSOURCED JOBS: DISNEYLAND IS IN THE DETAILS

Check out this three-condition scenario: Condition 1…your organization has outsourced non-core functions (for example, I have helped companies
move Finance, Accounting, Purchasing, Human Resource, Training, and Information Technology non-core jobs to off-shore centers in India, the
Philippines, and Europe as well as near-shore delivery centers in Texas and Oregon). Condition 2…the business case for keeping those jobs off-shore
has dramatically changed. Condition 3…your organization has decided to bring outsourced jobs back in-house. What are you going to do next? (I
doubt you will be going to Disneyland.) Effectively managing the details of your insourcing program can earn you that vacation after all.

COMMUNICATIONS MANAGEMENT MODEL

Eight sequential steps define a comprehensive model for effectively Functions

managing an insourcing program. Here are the eight steps and their key
activities: Exit Roles

1-Functions 5-Data
Determining what work will be brought Documenting how client and other data
back in-house. handling will change.
Projects
Insourcing
Timeline
2-Roles 6-Equipment
Transition
Specifying jobs to be in-scope for the Planning for changes to physical facilities
insourcing program. and inventories.
Equipment Systems
3-Timeline 7-Projects
Establishing budgets, program plans, and Ensuring knowledge transfer and other
calendars. work gets done.
Data
4-Systems 8-Exit
Identifying hardware and software Executing the final transition and Program, Risk, & Communications
changes needed. ensuring service readiness. Management

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LWK CONSULTING – INSOURCING TRANSITION
1. FUNCTIONS 3. TIMELINE

Starting at the very beginning is a very good place to start. The Now that you know the scope of the program (think in terms of
Functions step is where the business case for bringing outsourced people, process, and technology) the Timeline stage includes setting
jobs back into the fold is documented. It goes without saying that the aside budgets to get the work done. And I am not just talking about
business case must be congruent with the organization’s overall dollars. Just as important is granting everyone enough time to get the
strategy. The business case must document how the insourcing insourcing program work done. Finally, program management
program will impact your end-users/customers as well as your resources need to be planned for.
bottom-line financials.
This is also the stage when you must consider ongoing work, ensuring
At this stage think through and document how insourcing will impact that it continues with minimal disruption. Avoid disaster by
the people, processes, and technology across your organization. effectively planning for the insourcing program’s success while
ongoing work is successfully getting done, as well.
2. ROLES
The outputs of this stage are not easily produced. Now is when
At the Roles stage, you need to analyze the number of jobs that will service readiness criteria and measures are established…basically
be impacted across all of the organization’s in-scope functions: establishing how you will know you are ready to make the final
 Roles that will be brought in-house switch. The Program Plan and Program Calendar will form the
 Roles that will remain outsourced foundation for an effective insourcing transition.
 Roles that will no longer be required.
4. SYSTEMS
In order to get to the bottom-line business case results of your
insourcing, the details of this stage should include the level of each Once the Program Plan is in place, your Systems task is to document
full-time equivalent (FTE): the systems elements that will be brought in-house, such as software,
 Executives hardware, physical/logical Security, and process/procedure
 Managers/Supervisors documentation.
 Technical/Staff
 Secretarial/Clerical The subtasks at this step must be fully fleshed out and added to the
Program Plan.

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LWK CONSULTING – INSOURCING TRANSITION

5. DATA 8. EXIT

Systems which are in-scope for insourcing will determine what you Congratulations, your transition tasks are nearly complete! This Exit
address at the Data step. You must Document the data elements that stage is when the successful achievement of all service readiness
will be brought in-house, including (but not limited to) customer data, criteria and measures are documented. All system and data changes
confidential data, contracts, accounting and financial data, and are made here. Finally, this is when the physical moves, including
service management data. former and current employee changes, are executed.

The subtasks at this step (seeing a trend here?) must be fully fleshed PROGRAM, RISK, & COMMUNICATIONS MANAGEMENT
out and added to the Program Plan.
A quick note should be added here emphasizing the importance of
6. EQUIPMENT program (leadership and status reporting), risk (discovery and
mitigation), and communications (knowing your audiences and
The Equipment stage is comprised of determining whether any meeting their needs) management. They are all important. ‘Nuf said.
physical facilities will be brought in-house, such as computing
hardware, office furniture, physical inventories, and transportation. KEY SUCCESS FACTORS
And, yes…subtasks need to be added to the Program Plan. After you have taken on the responsibility for an insourcing program’s
success and effectively handled all of the details, keep the following
7. PROJECTS keys in mind so you can enjoy your well-earned Disneyland vacation:
 Build a business case strong enough to justify the effort and
Depending on the functional areas being brought in-house and the ensure broad-based support
number of roles within each function, the Projects stage is used to  Ensure highly detailed advance planning with ample resource
ensure the project work gets done. Here is a sample list: (time, money, and program management) budgets
 Process Documentation  Third-Party Contracts  Provide thorough stakeholder analysis and communications
 Client Data  Knowledge Transfer planning
 Software Licensing  Training  Execute consistent risk management (no surprises).
 Disaster Recovery Handover  Account Reconciliation
 Off-site Storage  Physical Security Let’s talk about organizational change coaching. Click the phone.

©2015 LWK Consulting, LLC. All Rights Reserved. Page 3 of 3