Transforming your organization to international General and Administrative (G&A) BPO is all about creating more efficient business processes. In the end, the transformation should mean reduced general and administrative operational costs.
Unfortunately, the actual transition from “as is” (existing organization and processes) to “to be” (optimized organizational processes that better serve the company’s business objectives and market challenges) can be, if not handled carefully, time consuming and costly.
However, with considerable upfront planning and a well-designed strategy, the transition is ripe with opportunities to not only drastically cut unnecessary costs, but to also simultaneously ensure the smooth and rapid success of the entire project. In the transition to G&A outsourcing, speed and quality are achieved by reducing timelines and producing quick successes.
This article offers six winning tips to help you improve speed and quality, saving both time and money.
How to reduce the costs of BPO transformation programs?
1. Add kick to your transformation
Trimming the Fat Patrick Nolot,
Global Program Director,
from BPO Transformation ADP
PART 1
“For me, the keys How to reduce
the costs of the transition process
to success are speed
and quality.” Transforming your organization to international General
and Administrative (G&A) BPO is all about creating more
efficient business processes. In the end, the transformation
should mean reduced general and administrative operational
costs. Unfortunately, the actual transition from “as is”
Six tips for speed and quality
(existing organization and processes) to “to be” (optimized
organizational processes that better serve the company’s
In my experience working with business objectives and market challenges) can be, if not
multinational companies implementing handled carefully, time consuming and costly.
G&A BPO, there are specific actions that
can be taken to reduce the costs Fortunately, with considerable upfront planning
associated with the transition period. and a well-designed strategy, the transition is ripe with
As you will see, the vast majority of the opportunities to not only drastically cut unnecessary costs,
following tips happens during the early but to also simultaneously ensure the smooth and rapid
stages of the transition – or even before success of the entire project.
the transition begins!
In the transition to G&A outsourcing,
I can’t say it enough; the more you speed and quality are achieved by reducing
plan the more you save. timelines and producing quick successes.
2. “BPO is all about building
momentum via tangible results.”
1 A Flexible Enterprise Service Architecture
Your BPO provider should offer a flexible enterprise service architecture that provides
separate solutions for large and small countries.
The first solution The second solution
– aimed at transforming large entities – is typically is aimed specifically at small countries and will
a centralized, cross-country ERP software program encompass specific, in-country service providers
customized for each individual entity. with specific, in-country solutions. Unlike the first
Needless to say, this solution takes time solution, this solution delivers
to implement but, as a result, allows for a strong a generic service that can be easily and quickly
standardization of processes across all countries – implemented as it has limited opportunity for
which in the end will reduce costs. customization.
2 Small Countries First
Your strategy should ensure that your BPO provider momentum and deliver encouragement while
starts by transitioning a handful of the smallest laying the foundation from which the large entities
entities in the company first. These small countries can build.
allow you to launch the transformation process
immediately, with little to no need for complex Even better, by transitioning smaller entities first,
program development. they begin to benefit from their “to be” cost savings
earlier, which combined, can result in a significant
In BPO, it’s all about building momentum via cost reduction in the total transformation process.
tangible results, and beginning with these small For me, the successes from the small countries
countries guarantees quick results. Whereas it may serve as a pipeline of positive communication
take 10 months to transition a large entity, and awareness as the transition is being planned
a smaller one can be ‘practically completed’ and eventually implemented in the larger entities.
(see box) within two. I find that quick wins build This is a real change management tool.
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3. 3
Simultaneous Transitioning
In order to reduce time, multiple things
must happen simultaneously.
“Practically Completed” In my experience, organizations tend to make the
mistake of rolling out their transition by tackling
When your smaller entities are transformed a big, pilot country first and, from there, going
early on, not all of their processes will be country-by-country, one at a time. This route is
connected to the enterprise service architecture costly as it requires a significant amount of time,
and will therefore not all be fully automated effort and change management support
(though they will be operational). to implement major changes in a single, large,
high-profile country.
The key here is to get most, if not all, of your
smaller entities 80% ‘transformed’ and then Additionally, because it requires so much time
all at once link them to the enterprise service and effort to complete the transition in a large
architecture for a simultaneous, 100% go-live. country, evidence that the transition is successful
and producing the desired results is non-existent.
Too often I see this lack of tangible results lead
to frustration among the project team,
management and affected staff.
Finally, the same structures needed and lessons
learned for the large pilot country are rarely able
to be replicated in, for example, another country
where the impacted organization is much smaller.
Therefore, it’s better to schedule the transition
so that smaller entities are transitioned while,
at the same time, preparations for the larger
entities are being made.
4 Preparing for Change Upfront
While your small entities are being transitioned, • Pre-project Due Diligence Checklist
you need to begin preparing those operating • Country Communications Plan
in your larger entities for change. One simple way
• Project Kick-Off Email and Deck
to standardize this process is by developing
Change Management Deliverables Templates • Blueprint Questionnaire Introduction
for general tasks. • Blueprint Kick-Off Deck
• Manager Announcement
Common examples of Change Management
Deliverables that can be standardized and even • Employee Announcement
prepared upfront include: • Thank You Memo
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4. 5 Change Management Expertise
Too often I see organizations try to falsely economize during the transformation process
by attempting to forego the need for change management expertise. Unfortunately,
what happens down the line is that the entire transformation hits major stumbling blocks
in terms of acceptance, expectations and morale because the change has been managed
insufficiently or, even worse, not at all.
I don’t suggest, however, that you must contract with an expensive, blue-chip Change
Management Consultancy. Instead, keep these tips in mind:
• It might be good to look beyond the marquee • Know that your BPO provider and your Change
brands to secure a smaller, less costly consultant Consultant will need to coordinate their activities
(perhaps even with a blue-chip consultancy and maintain regular communication. Therefore
background) to work with you. Whoever you perhaps even consider inviting your BPO
choose should be able to provide you with the provider to participate in the selection process
necessary communications and reporting tools of the consultant.
for deploying change in a way that makes people
feel connected and free to communicate their
own suggestions, questions and concerns.
6 Global Features
While the small countries are being The objective of the transformation phase
deployed and the big countries are being is to provide the BPO transformation team with
prepped for change, your BPO provider will a clear understanding of how to implement BPO
also be preparing the Enterprise services in all countries. The global - or
Architecture’s Global Features. cross-country - features of the program allow
this to happen. In other words, establishing the
global features of the BPO transformation program
allows for a seamless, across-the-board process.
Common global features that should be
“Transition smaller prepared during this phase include:
entities while at • Global Functionalities
the same time, • Global Data Model
preparations for • System Landscape
• Language Strategy
the larger entities • Use of Templates
are being made.”
(including abovementioned Change
Management Deliverable Templates)
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5. “Establishing the
global features of the
BPO transformation
program allows for
a seamless,
across-the-board
process.”
Preparing the global features will also serve as
a readiness assessment of the transformation prior
to implementing the change in the first wave
of countries. This also serves as a risk mitigation tool,
allowing you to identify potential problem areas
before they become a costly and timely issue.
See Trimming the Fat from BPO
Transformation, Part II
for the optimal Implementation
Roadmap
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6. Add kick to your transformation
Trimming the Fat Patrick Nolot,
Global Program Director,
from BPO Transformation ADP
PART 2
Transitioning in five Transitioning in 24 months
cost-effective waves maximum
The transition process for multinational Transforming your organization to international General
companies in five cost-effective waves: and Administrative (G&A) BPO is all about creating more
efficient business processes. In the end, the transformation
• Choosing a Business Process Outsourcing should mean reduced general and administrative operational
provider (BPO provider) costs. Unfortunately, the actual transition from “as is”
• Preparing the Transformation (existing organization and processes) to “to be” (optimized
• Gaining Quick Wins
organizational processes that better serve the company’s
business objectives and market challenges) can be, if not
• Accelerating the Roll-Out
handled carefully, time consuming and costly.
• Fulfilling the Business Case
Fortunately, with considerable upfront planning
The typical timeline for a large, multinational and a well-designed strategy, the transition is ripe with
transition process can run in excess of 10 months opportunities to not only drastically cut unnecessary costs,
per country. When these five waves are optimized but to also simultaneously ensure the smooth and rapid
for speed and quality, however, the timeline for the success of the entire project.
entire transformation can be reduced to a maximum
of twenty four months, all countries included.
Needless to say, this reduction in time equates to
additional costs savings.
7. The Transformation Roadmap
Wave 0: Wave I: Wave II:
Select BPO Provider Prepare the Transformation Gain Quick Wins
The first step is, of course, You start to map Here, your transformation
to select your BPO Provider. the program’s global features, starts to collect quick-win
Once selected, immediately and the BPO provider results as you implement BPO
start preparing for the and Change Management processes in the smaller
transformation program Consultant prepare the countries and implement
by also choosing a Change transformation roadmap the transformation in your
Management Consultant. for the first big country. first pilot big country.
Total Time: Total Time:
Two Months Six Months
BPO Program Transformation Map
Change Performance
Management Global features Measurement
Desired
Wave2 small
Countries
End-result
integration
Wave1 small
Countries
integration Large
Countries
All large
countries live
Quick
Wins 5+ large
countries live
Pilot large
Transformation
country live Small
Program All small Countries
Preparation countries live
10+ small
countries live
BPO Provider
selection
Wave I Wave II Wave III Wave IV
2 months 6 months 4 months 6 months
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8. Wave III: Wave IV: Desired End Result
Accelerate the Roll-Out Full-fill the Business Case
It’s time to go big. In Wave III, By the conclusion of Wave IV, Here, all your countries are
while continuing to transform your small countries can be live and running, and you have
your small entities and as simultaneously integrated reached your desired end result:
successes emerge from your into the enterprise service optimized organizational
large pilot country, begin architecture, along with processes that better serve
launching the transformation the rest of your big countries. the company’s business
in additional large countries objectives and market
on a rolling basis. By the end challenges.
of this Wave, you should have
all small countries live.
Total Time: Total Time: Total Time
Four Months Six Months for Transformation:
Twenty Four Months
Wrap-Up
• The key to an efficient transition to G&A BPO is a well-planned strategy that reduces
timelines and produces quick results.
• Select a BPO provider who offers a scalable enterprise service architecture that can accommodate
both large- and small-country operations. The successes gained from the small countries will motivate
the process in the big countries.
• Starting with small countries and a pilot large country allows you to immediately launch
the transformation process with little to no need for complex program development.
• Don’t run your transition country-by-country. It’s better to schedule the transition so smaller
entities are transitioned while, at the same time, preparations for the larger entities are being made.
• Take the time to prepare your large organizations for change upfront. Anticipate and prepare
for standardizations before the implementation process begins.
• Establishing global features for the entire transformation program allows for a seamless
process companywide.
• When choosing a Change Management Consultant, look beyond the marquee brands
and secure a smaller, less costly consultant who can provide the necessary communications
and reporting tools for deploying change in a way that makes people feel connected
and free to communicate their own suggestions, questions and concerns.
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