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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.
“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.




02
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




                                                                                                                           03
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)




04
“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




                                                                                                    05
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.
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




02
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.
                                                                                                                              03
www.globalHRstudio.com

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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. 02
  • 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 03
  • 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) 04
  • 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 05
  • 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 02
  • 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. 03