Resistance to change is probably the greatest challenge a small to medium-sized business' CEO needs to overcome when engaging employees to work with partners in low-cost countries. Indeed, the fear of the unknown, the cultural differences, the prospects (real or not) of competing internally for work, etc. are some of the main reasons why employees will consciously or unconsciously fight such change. Our second CEO Insight on the topic 'How to work with low-cost countries' focuses on ways to keep employees engaged and motivated. As usual in those Eurosia Insights, we do not pretend answering it all (the presentations are meant to be walked through in less than 30 secs ;)) but give a snapshot and some food for thoughts to GM, MD, CEOs (and aspiring ones), especially the ones of small to mid-sized companies. For more or if you want to exchange on the topic, feel free to comment below or drop me a line: cedric.brusselmans@eurosia.eu Enjoy the reading! Cedric

1.
HOW
TO
MAKE
MY
ORGANIZATION
WORK
WITH
LOW-­‐COST
COUNTRIES
PART
2:
MOTIVATING
EMPLOYEES
Eurosia™
CEO
Insight
#5

2. WHY
REVIEWING
YOUR
EMPLOYEE
MOTIVATION
STRATEGY?

3. BECAUSE
71%
OF
EMPLOYEES
EXPERIENCE
LOWER
WORK
MORALE
AFTER
(OUT)SOURCING-­‐RELATED
REORGANIZATION
Source:
Rashdan,
S.,
”The
impact
of
Offshoring
On
Employee
Motivation
In
The
Information
Technology
Field”
(2005)

4. BY
ADAPTING
THESE
8
LESSONS
LEARNED
TO
YOUR
ORGANIZATION,
YOU
CAN
KEEP
YOUR
EMPLOYEES
ENGAGED
&
MOTIVATED
TO
DELIVER

5. #1:
INVOLVE
YOUR
EMPLOYEES
IN
THE
FORMULATION
OF
THE
OUTSOURCING
PROJECT…
Eurosia™
CEO
Insight
#6

6. …SO
EMPLOYEES
ARE
(AND
FEEL)
INCLUDED
AND
CAN
ADD
VALUE
IN
THE
DECISION
MAKING
PROCESS
%
employees
who
feel
that
outsourcing
decisions
are
made
in
secret
by
company
leadership.
46%
32%
22%
Agree
Neutral
Disagree
Source:
Rashdan,
S.,
”The
impact
of
Offshoring
On
Employee
Motivation
In
The
Information
Technology
Field”
(2005)

7. #2:
FEAR
OF
THE
UNKNOWN
IS
THE
ENEMY
OF
CHANGE:
KEEP
CLARIFYING
HOW
THE
ORGANIZATION
WILL
BE
AFFECTED…
…and
communicate
that
such
change
will
bring
new
opportunities,
such
as
more
managerial
positions.

8. #3:
DEFINE
CLEAR
ROLES
&
RESPONSIBILITIES
WITHIN
YOUR
ORGANIZATION…

9. #4:
…
AND
SHOWCASE
HOW
WORKING
WITH
LOWER
COST
COUNTRIES
WILL
LEAD
TO
GREATER
REWARDS
FOR
HIGHER
VALUE-­‐
ADDED
WORK
AT
HOME

10. ”OUTSOURCING
CHANGES
THE
ROLE
OF
MANAGERS
AND
EXECUTIVES”
This
new
type
of
leadership
needs
four
capabilities:
1. Being
able
to
think
strategically
2. Making
deals
3. Governing
partnerships
4. Managing
change
Source:
Michael
Corbett,
The
Outsourcing
Revolution,
2004
Eurosia™
CEO
Insight
#5

11. #5:
INVOLVE
YOUR
EMPLOYEES
IN
THE
FUTURE
OF
THE
COMPANY
For
instance,
the
company
may
reward
the
best
employees
with
restricted
company
shares
or
warrants
/
stock
options

12. #6:
EXEMPLIFY
THAT
STRONG
PERFORMANCE
LEADS
TO
JOB
SECURITY…

13. #7:
FOSTER
RELATIONSHIPS
BUILDING
”Coming
together
is
a
beginning;
keeping
together
is
progress;
working
together
is
success”
Henry
Ford
For
instance:
Encouraging
and
creating
opportunities
for
your
employees
to
get
to
know
the
new
members
of
the
team
overseas.
Enabling
exchanges
and
trips
to
the
overseas
operations
for
the
best
performers.

14. #8:
PLAN
FOR
CONTINUOUS
EMPLOYEE
TRAINING
&
DEVELOPMENT
Eurosia™
CEO
Insight
#6
If
you
want
one
year
of
prosperity,
Grow
Grain,
If
you
want
ten
years
of
prosperity,
Grow
Trees,
If
you
want
one
hundred
years
of
prosperity,
Grow
People.
CHINESE
PROVERB

15. Get
it
FREE,
subscribe
here:
eepurl.com/RaIbn
In
our
next
Eurosia™
CEO
Insight
we
will
address
the
following:
10
BEST
PRACTICES
FROM
THE
MOST
SUCCESSFUL
CEOS

16. E U R O P E A N S E R V I C E . A S I A N P R I C E
TM
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