H I R E   T H E   E X P E R T S

  You cannot expect to be an expert in all aspects of your business or profession. Knowing when to outsource a particular function not only reaps substantial benefits, but also may be the determining factor on making you successful.   When starting out, small businesses can afford to have the entire staff involved in all processes, but at some point the inside costs or time are not cost effective, or the best utilization of your premium assets.

  The first step in making decisions as to what to farm out is honestly INVENTORYING your internal assets, abilities and shortcomings. A good example is this Newsletter. For business and purchasing issues, I have the innovative ideas, experience and knowledge so I am responsible for the creation or drafting of all articles but I am weak in typing, spelling, punctuation and grammar. Our President is a perfectionist at proof reading, and controlling exuberance. Our Vice President is one of the best word processing technicians and desk top publishers I ever met. Therefore, each of us concentrates his efforts in his strong areas and offers suggestions and ideas to the others in an open dialog.

  The things we don’t do well, lack the training, abilities, or for good business reasons, we farm out. Or to use the politically correct words “outsource.” Graphic arts, printing, accounting, tax preparation, secretarial services, travel arrangements and other repetitious mundane functions fall into this category.

  You too can be successful by concentrating your energies in the areas of your expertise by hiring other experts to provide these services. And these contracted firms will do it more economically and efficiently than you could ever hope to do, which in turn helps you be more successful.

  Your inventory should include an analysis of what you do, like to do, what you do extremely well, and what you personally should do. Once you have your list(s), think about the logistics, i.e. how to assign and receive the work products, then interview potential providers. Their comments will be helpful hints as to how to specify or contact for these services.

  Once the contact is awarded either by bid or competitive bid exception, the purchasing agents (contract manager or administrator) function becomes all important.

  1. Inform your staff
  2. Inform all potential users
  3. Regular communications with the Contractor
  4. Train suppliers and users
  5. Administer or manage the contract
  6. Terminate, re-issue, or renew the contract

  One of the most critical aspects of the “outsource” concept is the communication and follow up required to make a project successful. Like employees, the supplier and the other party to the contract must interface. Open, non-fault discussions have to be held on a regular basis and as needed. Each party must accept suggestions, and criticisms in a positive way. There will probably be as much time spent monitoring the agreement as there was to hire an employee to provide the same services in-house. The difference will be in the expertise of the in house administration and the quality/efficiency of the expertise of the suppliers in their field. Don’t expect to shed responsibility; but when done correctly, your quality, reputation and, hopefully, the bottom line will improve dramatically.

© 1997 by Donald L. Woods, All Rights Reserved