Intrenion

Outsourcing (Steven M. Bragg)

Table of Contents

Copy Doctrine

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Outsourcing (Steven M. Bragg)

Problem
Outsourcing without a clear purpose can weaken important business capabilities.

Action
Choose to outsource functions only when the change supports a defined business goal.

Outcome
The company gains outside support while protecting its strategic strengths.

Chapter: Strategy of Outsourcing - Overview of Outsourcing

Practice 2: Assess outsourcing risks before committing

Problem
Outsourcing can create service, cost, control, and dependency risks.

Action
Identify each major risk and define a response before selecting a supplier.

Outcome
The company can prevent or limit costly disruptions.

Chapter: Strategy of Outsourcing - Outsourcing Risks

Practice 3: Build a clear outsourcing proposal

Problem
An outsourcing effort can fail when its scope and expected benefits are unclear.

Action
Document the scope, goals, costs, risks, and approval process before contacting suppliers.

Outcome
Decision makers can evaluate the proposal using consistent facts.

Chapter: Strategy of Outsourcing - Initiating Outsourcing

Practice 4: Match the provider type to the function

Problem
Different providers offer different levels of skill, capacity, and control.

Action
Select a provider whose business model and experience fit the outsourced function.

Outcome
The chosen provider is more likely to meet operational needs.

Chapter: Strategy of Outsourcing - Companies That Take Over Outsourced Functions

Practice 5: Use a disciplined outsourcing strategy

Problem
Separate outsourcing decisions can create conflicting goals and unmanaged risk.

Action
Apply one strategy to select functions, assess risks, and choose providers.

Outcome
Outsourcing decisions remain consistent with company priorities.

Chapter: Strategy of Outsourcing - Summary

Practice 6: Search broadly for qualified suppliers

Problem
A narrow supplier search can exclude capable providers and reduce competition.

Action
Use industry contacts, trade sources, advisers, and formal requests to find candidates.

Outcome
The company gains a stronger group of suppliers to compare.

Chapter: Outsourcing a Function - How to Find an Outsourcing Supplier

Practice 7: Verify supplier capability before selection

Problem
A persuasive sales presentation may hide weak operations or limited capacity.

Action
Check references, financial strength, staffing, systems, facilities, and past results.

Outcome
The company selects a supplier capable of performing the required work.

Chapter: Outsourcing a Function - Evaluating Potential Outsourcing Suppliers

Practice 8: Calculate the full relationship cost

Problem
The contract price can exclude transition, oversight, change, and termination costs.

Action
Compare suppliers using the total expected cost of the outsourcing relationship.

Outcome
The financial decision reflects the real cost to the company.

Chapter: Outsourcing a Function - Cost of the Outsourcing Relationship

Practice 9: Plan for affected employees early

Problem
Uncertainty about jobs can reduce morale and disrupt daily work.

Action
Decide how employees will be retained, transferred, reassigned, or released before announcing the change.

Outcome
Employees receive clear treatment, and the transition faces less disruption.

Chapter: Outsourcing a Function - Personnel Issues

Practice 10: Manage the transition with a detailed schedule

Problem
Poorly coordinated transfers can interrupt service and lose critical knowledge.

Action
Assign owners and deadlines for transferring people, data, systems, assets, and procedures.

Outcome
The supplier assumes responsibility with fewer service failures.

Chapter: Outsourcing a Function - Transition Issues

Practice 11: Maintain regular contact with the supplier

Problem
Small issues can grow when the company and supplier communicate only during failures.

Action
Hold scheduled reviews with clear contacts, open issue lists, and agreed decisions.

Outcome
Both parties resolve problems before they damage the relationship.

Chapter: Outsourcing a Function - Relations with the Outsourcing Partner

Practice 12: Measure service with specific standards

Problem
The company cannot manage outsourced work when acceptable service is undefined.

Action
Set measurable targets for quality, speed, availability, volume, and error rates.

Outcome
Performance can be compared with clear expectations.

Chapter: Outsourcing a Function - Measuring the Service Level of Each Outsourced Function

Practice 13: Manage outsourcing as a continuing relationship

Problem
Supplier selection alone does not ensure reliable long-term service.

Action
Combine careful selection, full cost analysis, transition planning, communication, and measurement.

Outcome
The outsourced function remains stable after the contract begins.

Chapter: Outsourcing a Function - Summary

Practice 14: Build the contract from operating requirements

Problem
A general contract may not define how the outsourced work must be performed.

Action
Translate the required scope, service levels, responsibilities, prices, and remedies into written terms.

Outcome
Both parties understand their duties and the basis for enforcement.

Chapter: Contractual Issues - Constructing the Contract

Practice 15: Include protections for predictable disputes

Problem
Missing clauses can leave the company exposed when conditions change or problems occur.

Action
Address confidentiality, liability, ownership, audits, changes, disputes, termination, and transition support.

Outcome
The contract provides clear responses to common risks.

Chapter: Contractual Issues - Contract Clauses

Practice 16: Add terms for the specific function

Problem
Standard contract language may overlook risks unique to the outsourced activity.

Action
Add requirements for the data, assets, regulations, service demands, and technical needs of the function.

Outcome
The agreement protects the company against function-specific failures.

Chapter: Contractual Issues - Function-Specific Contractual Issues

Practice 17: Treat the contract as an operating tool

Problem
A contract provides little value when it does not guide daily work and problem handling.

Action
Create a comprehensive agreement that links legal protections to practical service requirements.

Outcome
The company can manage performance and disputes from one clear document.

Chapter: Contractual Issues - Summary

Practice 18: Assign one functional coordinator

Problem
Multiple uncoordinated contacts can lead to the supplier receiving conflicting instructions.

Action
Name one coordinator to collect requests, track issues, and communicate decisions.

Outcome
The supplier receives consistent direction from the company.

Chapter: Managing the Supplier - Functional Coordinator

Problem
Contract rights can weaken when obligations, notices, or violations are not tracked.

Action
Have legal staff review compliance, amendments, disputes, and required notices on a regular schedule.

Outcome
The company preserves its contractual protections.

Chapter: Managing the Supplier - Legal Management

Practice 20: Use a cross-functional advisory committee

Problem
One department may overlook the effects of outsourcing on other parts of the company.

Action
Create a committee that reviews performance, risks, changes, and shared concerns.

Outcome
Major supplier decisions reflect the needs of affected functions.

Chapter: Managing the Supplier - Outsourcing Advisory Committee

Practice 21: Appoint an executive sponsor

Problem
Serious supplier issues can remain unresolved without senior authority.

Action
Assign an executive to support the relationship and settle major internal conflicts.

Outcome
Important decisions receive timely leadership attention.

Chapter: Managing the Supplier - Outsourcing Sponsor

Practice 22: Adapt oversight to each function

Problem
A single management method may miss the special risks of different outsourced activities.

Action
Set controls, reports, contacts, and review schedules for each functional area.

Outcome
Oversight matches the work that each supplier performs.

Chapter: Managing the Supplier - Management of Specific Functional Areas

Practice 23: Control international supplier differences

Problem
Distance, language, laws, currencies, and time zones can increase operating risk.

Action
Define local responsibilities and communication rules for every country involved.

Outcome
International work remains coordinated across locations.

Chapter: Managing the Supplier - Management of International Suppliers

Practice 24: Establish a complete supplier governance structure

Problem
Supplier performance declines when ownership and escalation paths are unclear.

Action
Combine operational coordination, legal review, committee oversight, and executive sponsorship.

Outcome
The company can direct the supplier and resolve issues at the proper level.

Chapter: Managing the Supplier - Summary

Practice 25: Prepare for every termination scenario

Problem
Termination can occur due to poor performance, business changes, supplier failure, or contract expiration.

Action
Create response plans for each likely reason the relationship could end.

Outcome
The company can act quickly under different termination conditions.

Chapter: Terminating the Outsourcing Arrangement - Termination Scenarios

Practice 26: Correct problems before ending the contract

Problem
Premature termination can cause avoidable costs and service disruption.

Action
Use early warnings, corrective plans, escalation, and formal cure periods to restore performance.

Outcome
Recoverable relationships can continue without a costly replacement.

Chapter: Terminating the Outsourcing Arrangement - Termination Avoidance

Practice 27: Maintain a general exit plan

Problem
A company can lose access to essential people, data, systems, and records when a contract ends.

Action
Define notice periods, transition duties, asset returns, data transfers, fees, and final approvals.

Outcome
The company can move the work with controlled disruption.

Chapter: Terminating the Outsourcing Arrangement - General Termination Issues

Practice 28: Plan exits for each function

Problem
Different functions require different knowledge, assets, controls, and replacement skills during termination.

Action
Create a function-specific checklist for transferring work to another provider or back inside the company.

Outcome
Each outsourced activity can continue through the change.

Chapter: Terminating the Outsourcing Arrangement - Function-Specific Termination Issues

Practice 29: Make termination readiness part of management

Problem
An exit plan becomes unreliable when it is created only after the relationship fails.

Action
Update termination scenarios, prevention steps, and transfer plans throughout the contract.

Outcome
The company remains ready to end the arrangement safely.

Chapter: Terminating the Outsourcing Arrangement - Summary

Practice 30: Redesign financial data collection

Problem
Outsourcing changes where financial data originates and how quickly it reaches the company.

Action
Define the data format, source, timing, ownership, and validation process with the supplier.

Outcome
Accounting receives complete and usable information on time.

Chapter: Accounting for the Outsourced Company - Impact on Data Collection

Practice 31: Preserve reliable financial reporting

Problem
Supplier data delays or classification errors can distort financial statements.

Action
Set reporting deadlines and reconciliation rules that support each financial close.

Outcome
Financial reports remain timely and accurate.

Chapter: Accounting for the Outsourced Company - Impact on Financial Reporting

Practice 32: Extend controls across supplier boundaries

Problem
Internal controls can fail when important transactions move outside the company.

Action
Assign control duties and require evidence that the supplier performs them.

Outcome
The company maintains control over outsourced financial activity.

Chapter: Accounting for the Outsourced Company - Impact on Controls

Practice 33: Adjust performance measures for outsourcing

Problem
Old measures may confuse supplier results with the performance of internal managers.

Action
Separate supplier service, retained costs, and internal responsibilities in performance reports.

Outcome
Managers are judged using results they can influence.

Chapter: Accounting for the Outsourced Company - Impact on Performance Measurement

Practice 34: Define transaction handling rules

Problem
Outsourced transactions can be recorded incorrectly when processing responsibilities are unclear.

Action
Document authorization, coding, recording, reconciliation, and correction rules for each transaction type.

Outcome
Transactions enter the accounts consistently and correctly.

Chapter: Accounting for the Outsourced Company - Impact on Transactions

Practice 35: Rebuild accounting around the outsourced model

Problem
Existing accounting processes may not support data and controls spread across company boundaries.

Action
Align data collection, reporting, controls, measures, and transaction rules with supplier operations.

Outcome
Accounting remains dependable after outsourcing.

Chapter: Accounting for the Outsourced Company - Summary

Practice 36: Test whether accounting outsourcing fits

Problem
Lower processing costs may come with less control, flexibility, and internal knowledge.

Action
Compare expected savings with service, control, compliance, and dependency risks.

Outcome
The company outsources accounting only when the benefits justify the tradeoffs.

Chapter: Outsourcing the Accounting Function - Advantages and Disadvantages

Practice 37: Transfer accounting knowledge carefully

Problem
Missing account rules and close procedures can create errors during the transition.

Action
Transfer policies, schedules, records, system access, and exception knowledge through tested handoffs.

Outcome
Accounting work continues accurately during the change.

Chapter: Outsourcing the Accounting Function - Transition Issues

Practice 38: Keep approval and review controls

Problem
A supplier that processes and approves the same accounting work can hide mistakes or misuse.

Action
Retain key approvals, reconciliations, access reviews, and audit rights within the company.

Outcome
The company can detect improper accounting activity.

Chapter: Outsourcing the Accounting Function - Creating Control Points

Practice 39: Measure accounting accuracy and speed

Problem
Processing volume alone does not show whether accounting work is reliable.

Action
Track error rates, close timing, correction time, backlog, and reporting accuracy.

Outcome
The company can quickly identify weaknesses in accounting services.

Chapter: Outsourcing the Accounting Function - Measuring the Outsourced Function

Practice 40: Protect accounting service for internal customers

Problem
Employees and managers may receive slow responses when accounting support is outsourced.

Action
Provide clear contact channels and response targets for questions, corrections, and urgent requests.

Outcome
Internal customers continue to receive useful accounting support.

Chapter: Outsourcing the Accounting Function - Potential Customer Service Issues

Practice 41: Retain control of outsourced accounting

Problem
Accounting outsourcing can reduce visibility into essential financial work.

Action
Combine careful transition, retained controls, service measures, and support rules.

Outcome
The company gains outside processing without losing financial oversight.

Chapter: Outsourcing the Accounting Function - Summary

Practice 42: Evaluate computer service tradeoffs

Problem
Outside technical skill and scale can create dependence, security exposure, and less flexibility.

Action
Compare service gains with cost, control, security, recovery, and vendor dependency risks.

Outcome
The company chooses an appropriate level of computer service outsourcing.

Chapter: Outsourcing Computer Services - Advantages and Disadvantages

Practice 43: Migrate computer services in tested stages

Problem
A rushed technology transfer can interrupt systems and damage data.

Action
Move systems through documented stages with backups, testing, recovery plans, and user approval.

Outcome
Technology services continue with fewer failures.

Chapter: Outsourcing Computer Services - Transition Issues

Practice 44: Retain control over systems and data

Problem
The company can lose access or security when the supplier controls every technical resource.

Action
Keep authority over access, security standards, backups, changes, and data ownership.

Outcome
Critical systems remain protected and recoverable.

Chapter: Outsourcing Computer Services - Creating Control Points

Practice 45: Measure technical service performance

Problem
Users suffer when system availability and support quality are not measured.

Action
Track uptime, response time, resolution time, security events, and successful changes.

Outcome
The company can enforce dependable computer service.

Chapter: Outsourcing Computer Services - Measuring the Outsourced Function

Practice 46: Give users reliable technical support

Problem
Users lose productive time when outside support is difficult to reach or understand.

Action
Set simple support channels with priority rules and response targets.

Outcome
Users receive faster help with technical problems.

Chapter: Outsourcing Computer Services - Potential Customer Service Issues

Practice 47: Govern outsourced technology closely

Problem
Technology outsourcing can affect nearly every company operation.

Action
Combine staged migration, retained authority, security controls, performance measures, and user support.

Outcome
The company gains technical capacity while protecting operations.

Chapter: Outsourcing Computer Services - Summary

Practice 48: Evaluate customer service tradeoffs

Problem
An outside service team may lower costs while weakening customer knowledge and brand control.

Action
Compare savings and capacity with quality, training, data, and reputation risks.

Outcome
The company chooses outsourcing only when the customer's needs remain protected.

Chapter: Outsourcing the Customer Service Function - Advantages and Disadvantages

Practice 49: Put customer service standards in the contract

Problem
General service terms may not protect the quality of direct customer interactions.

Action
Define scripts, training, response targets, escalation rules, data use, and quality reviews.

Outcome
The supplier handles customers according to company standards.

Chapter: Outsourcing the Customer Service Function - Contract-Specific Issues

Practice 50: Transfer customer knowledge before launch

Problem
Agents cannot help customers well without accurate product, policy, and history information.

Action
Provide tested training, knowledge records, customer data, and practice cases before service begins.

Outcome
Agents can answer customers correctly from the start.

Chapter: Outsourcing the Customer Service Function - Transition Issues

Practice 51: Retain control of customer interactions

Problem
Poor supplier conduct can damage relationships before the company notices.

Action
Monitor contacts, approve key scripts, review complaints, and control serious escalations.

Outcome
The company can quickly correct harmful service behavior.

Chapter: Outsourcing the Customer Service Function - Creating Control Points

Practice 52: Measure the customer experience

Problem
Fast call handling can hide inaccurate answers and unresolved customer needs.

Action
Track resolution, accuracy, wait time, repeat contacts, complaints, and customer satisfaction.

Outcome
Performance measures reflect the quality customers receive.

Chapter: Outsourcing the Customer Service Function - Measuring the Outsourced Function

Practice 53: Prevent service gaps between organizations

Problem
Customers become frustrated when the supplier and the company pass responsibility to each other.

Action
Create one clear process for ownership, transfer, escalation, and follow-through.

Outcome
Customers receive consistent help across both organizations.

Chapter: Outsourcing the Customer Service Function - Potential Customer Service Issues

Practice 54: Keep ownership of the customer relationship

Problem
Outsourcing customer contact can separate the company from its customers' needs.

Action
Use strong contract terms, knowledge transfer, monitoring, measures, and escalation paths.

Outcome
The company retains customer trust while using outside service capacity.

Chapter: Outsourcing the Customer Service Function - Summary

Practice 55: Protect core engineering knowledge

Problem
Outsourcing engineering can add expertise while exposing designs and weakening internal skills.

Action
Compare capacity gains with intellectual property, quality, coordination, and knowledge risks.

Outcome
The company outsources engineering without giving away essential capability.

Chapter: Outsourcing the Engineering Function - Advantages and Disadvantages

Practice 56: Transfer engineering work through design gates

Problem
Incomplete requirements can lead to costly design errors during the transition.

Action
Move work through approved requirements, design reviews, prototypes, tests, and documentation.

Outcome
The supplier receives clear technical direction before assuming full responsibility.

Chapter: Outsourcing the Engineering Function - Transition Issues

Practice 57: Retain approval of critical designs

Problem
Unreviewed supplier decisions can affect safety, cost, quality, and product performance.

Action
Keep company approval for specifications, design changes, tests, and final acceptance.

Outcome
The company controls the most important engineering decisions.

Chapter: Outsourcing the Engineering Function - Creating Control Points

Practice 58: Measure engineering results

Problem
Hours worked do not show whether engineering output is useful or correct.

Action
Track milestone completion, design defects, change volume, test results, and project cost.

Outcome
The company can judge engineering work by the delivered results.

Chapter: Outsourcing the Engineering Function - Measuring the Outsourced Function

Practice 59: Coordinate engineering with customers

Problem
Customers may receive slow or inconsistent answers when engineers work outside the company.

Action
Define who answers technical questions and who approves customer-facing commitments.

Outcome
Customers receive accurate technical information on time.

Chapter: Outsourcing the Engineering Function - Potential Customer Service Issues

Practice 60: Direct outsourced engineering through clear gates

Problem
Engineering outsourcing can lose value when knowledge, authority, and quality checks are weak.

Action
Protect core knowledge through controlled transitions, approvals, measures, and customer coordination.

Outcome
Outside engineers add capacity without reducing product control.

Chapter: Outsourcing the Engineering Function - Summary

Practice 61: Evaluate human resources outsourcing carefully

Problem
Outside expertise can reduce administrative work while exposing sensitive employee matters.

Action
Compare savings and skill gains with privacy, compliance, service, and employee trust risks.

Outcome
The company outsources only suitable human resources activities.

Chapter: Outsourcing the Human Resources Function - Advantages and Disadvantages

Practice 62: Transfer employee records securely

Problem
Errors or leaks during transition can harm employees and violate legal duties.

Action
Validate records, restrict access, test processes, and explain new service channels before transfer.

Outcome
Employees receive continuous service with protected information.

Chapter: Outsourcing the Human Resources Function - Transition Issues

Practice 63: Retain control of sensitive decisions

Problem
A supplier should not make employment decisions that require company judgment.

Action
Keep company approval for hiring standards, discipline, compensation policy, and employee relations.

Outcome
Management remains responsible for decisions that affect employees.

Chapter: Outsourcing the Human Resources Function - Creating Control Points

Practice 64: Measure human resources service

Problem
Completed transactions do not show whether employees receive correct and timely help.

Action
Track accuracy, response time, case resolution, compliance, and employee satisfaction.

Outcome
The company can identify and correct weak employee service.

Chapter: Outsourcing the Human Resources Function - Measuring the Outsourced Function

Practice 65: Give employees clear support paths

Problem
Employees may feel ignored when they cannot reach the right human resources contact.

Action
Provide simple contact options with privacy protections and escalation routes.

Outcome
Employees can resolve personal work issues with less delay.

Chapter: Outsourcing the Human Resources Function - Potential Customer Service Issues

Practice 66: Keep responsibility for the employee relationship

Problem
Outsourcing administration does not remove the company's duty to its employees.

Action
Combine secure transition, retained decisions, service measures, and accessible support.

Outcome
The company gains outside help while preserving employee trust.

Chapter: Outsourcing the Human Resources Function - Summary

Practice 67: Evaluate logistics tradeoffs

Problem
A logistics supplier can add scale while reducing direct control over inventory and delivery.

Action
Compare cost and reach with reliability, visibility, capacity, and dependency risks.

Outcome
The company selects a logistics model that supports customer demand.

Chapter: Outsourcing the Logistics Function - Advantages and Disadvantages

Practice 68: Transfer logistics operations in stages

Problem
A sudden transfer can disrupt inventory flows and customer deliveries.

Action
Move routes, stock, systems, locations, and carrier duties through tested stages.

Outcome
Goods continue moving during the transition.

Chapter: Outsourcing the Logistics Function - Transition Issues

Practice 69: Maintain visibility over goods

Problem
The company cannot act quickly when it lacks reliable inventory and shipment information.

Action
Require tracking, inventory reconciliation, exception alerts, and approval for major routing changes.

Outcome
The company retains control over the movement of goods.

Chapter: Outsourcing the Logistics Function - Creating Control Points

Practice 70: Measure logistics performance

Problem
Low freight cost can hide late, damaged, incomplete, or inaccurate deliveries.

Action
Track delivery time, order accuracy, damage, inventory accuracy, and cost per shipment.

Outcome
The company can balance service quality with logistics cost.

Chapter: Outsourcing the Logistics Function - Measuring the Outsourced Function

Practice 71: Protect delivery service

Problem
Customers blame the company when an outside carrier misses a delivery promise.

Action
Set delivery commitments, tracking access, complaint handling, and recovery procedures.

Outcome
Customers receive a clearer and more reliable delivery service.

Chapter: Outsourcing the Logistics Function - Potential Customer Service Issues

Practice 72: Control logistics through visibility

Problem
Outsourced logistics can separate the company from inventory and delivery problems.

Action
Use staged transfer, shipment controls, balanced measures, and customer recovery rules.

Outcome
The company gains logistics capacity without losing delivery oversight.

Chapter: Outsourcing the Logistics Function - Summary

Practice 73: Evaluate facilities service tradeoffs

Problem
Outside maintenance and cleaning can lower costs while creating safety and quality risks.

Action
Compare savings with the needs for reliability, security, safety, skill, and facility knowledge.

Outcome
The company selects appropriate facilities for outsourced work.

Chapter: Outsourcing the Maintenance and Janitorial Functions - Advantages and Disadvantages

Practice 74: Transfer facilities duties by site

Problem
Missing equipment and site knowledge can cause service gaps during transition.

Action
Document assets, schedules, hazards, access rules, supplies, and open work before handoff.

Outcome
The supplier can begin work without overlooking critical duties.

Chapter: Outsourcing the Maintenance and Janitorial Functions - Transition Issues

Practice 75: Control safety and facility access

Problem
Supplier employees may enter sensitive areas and perform hazardous work.

Action
Require access controls, safety procedures, work approvals, inspections, and incident reporting.

Outcome
Facilities work remains secure and safe.

Chapter: Outsourcing the Maintenance and Janitorial Functions - Creating Control Points

Practice 76: Measure facility condition and response

Problem
Completed work orders may not show whether buildings are clean, safe, and dependable.

Action
Track inspection results, response time, repeat repairs, downtime, and safety events.

Outcome
The company can verify the condition of its facilities.

Chapter: Outsourcing the Maintenance and Janitorial Functions - Measuring the Outsourced Function

Practice 77: Manage facilities suppliers through inspections

Problem
Maintenance and cleaning problems can grow when work is accepted without verification.

Action
Combine site handoffs, access controls, safety rules, inspections, and service measures.

Outcome
Facilities remain usable and safe under outside management.

Chapter: Outsourcing the Maintenance and Janitorial Functions - Summary

Practice 78: Evaluate manufacturing tradeoffs

Problem
Outside production can add capacity while reducing control over quality, cost, and supply.

Action
Compare savings and flexibility with quality, intellectual property, lead time, and dependency risks.

Outcome
The company chooses manufacturing work that can be outsourced safely.

Chapter: Outsourcing the Manufacturing Function - Advantages and Disadvantages

Practice 79: Transfer production through qualified runs

Problem
A supplier may produce defects when processes and specifications are transferred too quickly.

Action
Complete training, tooling checks, sample runs, inspections, and approval before full production.

Outcome
The supplier reaches stable production with fewer defects.

Chapter: Outsourcing the Manufacturing Function - Transition Issues

Practice 80: Retain control of product quality

Problem
Defects can reach customers when the supplier controls production and final acceptance.

Action
Keep approval over specifications, process changes, inspections, and release decisions.

Outcome
Products meet company requirements before shipment.

Chapter: Outsourcing the Manufacturing Function - Creating Control Points

Practice 81: Measure manufacturing performance

Problem
Unit price alone can hide defects, delays, waste, and production instability.

Action
Track yield, defects, lead time, schedule performance, capacity, and total unit cost.

Outcome
The company sees the true performance of outsourced production.

Chapter: Outsourcing the Manufacturing Function - Measuring the Outsourced Function

Practice 82: Protect customers from production failures

Problem
Supplier delays and defects can prevent customers from receiving usable products on time.

Action
Set procedures for alerting, containment, replacement, and communication for production problems.

Outcome
Customer harm is limited when manufacturing failures occur.

Chapter: Outsourcing the Manufacturing Function - Potential Customer Service Issues

Practice 83: Govern outsourced production by quality

Problem
Manufacturing savings disappear when poor quality and delays reach customers.

Action
Use qualified transitions, retained approvals, complete measures, and rapid recovery procedures.

Outcome
Outside production delivers dependable products at a controlled cost.

Chapter: Outsourcing the Manufacturing Function - Summary

Practice 84: Evaluate sales and marketing tradeoffs

Problem
Outside specialists can expand reach while weakening message control and customer knowledge.

Action
Compare added skill and coverage with brand, data, incentive, and relationship risks.

Outcome
The company outsources only work that supports its market goals.

Chapter: Outsourcing the Sales and Marketing Functions - Advantages and Disadvantages

Practice 85: Transfer market knowledge clearly

Problem
Outside teams cannot represent the company well without accurate customer and product knowledge.

Action
Provide approved messages, customer segments, product facts, pricing rules, and campaign plans.

Outcome
The supplier enters the market with consistent direction.

Chapter: Outsourcing the Sales and Marketing Functions - Transition Issues

Practice 86: Retain control of brand and commitments

Problem
Unapproved messages or promises can damage the company and mislead customers.

Action
Require approval for brand use, pricing, claims, offers, and major customer commitments.

Outcome
Sales and marketing activity stays within company policy.

Chapter: Outsourcing the Sales and Marketing Functions - Creating Control Points

Practice 87: Measure profitable market results

Problem
Activity counts can reward effort that does not produce valuable customers.

Action
Track qualified leads, conversion, revenue, margin, retention, and campaign cost.

Outcome
The company can assess whether external efforts drive meaningful growth.

Chapter: Outsourcing the Sales and Marketing Functions - Measuring the Outsourced Function

Practice 88: Coordinate customer ownership

Problem
Customers receive mixed messages when internal and outside teams manage the same relationship.

Action
Assign account ownership and define rules for contact, handoff, promises, and complaints.

Outcome
Customers receive consistent treatment from every sales channel.

Chapter: Outsourcing the Sales and Marketing Functions - Potential Customer Service Issues

Practice 89: Keep control of market relationships

Problem
Outsourcing sales and marketing can distance the company from its customers and brand.

Action
Combine knowledge transfer, approval controls, result measures, and clear account ownership.

Outcome
Outside teams expand market activity without weakening customer relationships.

Chapter: Outsourcing the Sales and Marketing Functions - Summary

Practice 90: Evaluate administrative outsourcing tradeoffs

Problem
Outside administrative support can reduce routine work while creating privacy and service risks.

Action
Compare savings with confidentiality, accuracy, access, responsiveness, and dependency needs.

Outcome
The company outsources suitable administrative tasks with known risks.

Chapter: Outsourcing the Administration Function - Advantages and Disadvantages

Practice 91: Transfer administrative routines with checklists

Problem
Small missing details can disrupt schedules, records, supplies, and office support.

Action
Document each routine, deadline, contact, record, and exception before handoff.

Outcome
Administrative work continues consistently during the transition.

Chapter: Outsourcing the Administration Function - Transition Issues

Practice 92: Protect records and approvals

Problem
Administrative suppliers may handle confidential information and initiate company actions.

Action
Limit system access and retain approval for sensitive records, purchases, payments, and communications.

Outcome
The company reduces misuse and unauthorized activity.

Chapter: Outsourcing the Administration Function - Creating Control Points

Practice 93: Measure administrative reliability

Problem
Routine work can appear complete while containing delays and errors.

Action
Track accuracy, completion time, backlog, missed deadlines, and request resolution.

Outcome
The company can verify dependable administrative support.

Chapter: Outsourcing the Administration Function - Measuring the Outsourced Function

Practice 94: Keep administrative support easy to reach

Problem
Employees lose time when they cannot quickly obtain routine help.

Action
Provide clear request channels with response targets and escalation contacts.

Outcome
Employees receive timely support for daily work.

Chapter: Outsourcing the Administration Function - Potential Customer Service Issues

Practice 95: Standardize control of administrative services

Problem
Routine services become unreliable when procedures, authority, and response expectations are unclear.

Action
Use documented transitions, access controls, performance measures, and simple support channels.

Outcome
Administrative outsourcing reduces workload without disrupting the office.

Chapter: Outsourcing the Administration Function - Summary