In my experience of delivering IT projects and outsourced eco-systems, there are a couple of areas that if not given the right degree of respect will come back to haunt you. In the project delivery area these are data migration and infrastructure. There is no point in delivering the perfect application if the data is rubbish to start with and the infrastructure stack gets more complex each year with the rapid development of technologies. These days, more applications are implemented on cloud-based services to help future proof the infrastructure landscape, however, data migration remains a challenge for many programmes. Both these facets need due consideration. What links both projects and outsource transformation programmes is Change Management, and the crucial elements of change management are the 3 Cs ‘communication, communication, communication’!

You may have developed the best solution in the world but if the business processes are changing as a result and the users are unaware of that, then there will be chaos ahead. The same is true in outsourcing; you may appoint the best 3^rd party suppliers into your eco-system, but if the processes are not aligned and responsibilities blurred, the operating model will not work and will certainly not be optimal. This will lead to a huge amount of frustration with the end user community and significant time wasted. Investment in this area is key to a successful outsource and should start early in the process when considering the design of the retained organisation and the subsequent operating model.

How does the change impact people?

Before you embark on the change journey, there is the more immediate need of considering the existing employee base and how an outsourcing solution will affect them. People are the same the world over, when there is a period of change, the first question they ask themselves is ‘how does this impact me?’

Communication is an art, it is one of those areas that you are ‘damned if you do and damned if you don’t’. Too much communication can lead to information overload and people getting unnecessarily worried over something they have little control of. Too little communication leads people to the conclusion that management is hiding something. Again, the global pandemic has illustrated this, when the message was clear, Stay at Home, Protect the NHS and Save Lives, people got it and to a great extent behaved in the required way. As soon as the messaging became less clear e.g. you can’t invite your parents to your house, but a cleaner can come to your house and work, people started to switch off, look for ways to beat the system and adherence to policy started to break down. Clear messaging is key, humans like and react well to clear messages, especially where the reason is explained, as it was at the beginning of the pandemic.

Therefore, when embarking down the outsourcing journey the Communication Strategy should be right up there in terms of key documents. It should be developed by communication experts and managed accordingly; this is not part of someone’s day job. Remember when developing a strategy, most communication in an organisation is informal and uncontrollable so there is no point in trying to control it – but also remember that rumours start somewhere, so if there are going to be changes to employee environment (e.g. TUPE), then the sooner that message is conveyed in a controlled manner, the better for everyone. The world is littered with corporate communication disasters, not necessarily relevant to outsourcing, but the lessons are there to be learned.

Communication Strategy

One of the most common mistakes when developing a strategy is to tell the employees what is happening, rather than why it is happening. People are more accepting of messages, even bad ones, if they understand why – it’s that parent/child scenario, tell a child to do something and they will want to know why, to say ‘because I told you to’ leaves the child ill-informed – the same applies to the workplace.

A few things to consider when developing the strategy:

• What are the organisation’s goals and strategic ambitions going forward? Post outsource
• What impact will the outsource have on the existing employees? How will they feel and what can they do to help realise the strategy?
• What roles and responsibilities will be left in the retained organisation?
• What will be the size of the retained organisation?
• Will I be part of it?

Remember – ‘What does this change mean to me?’

Listed below are some of the key steps required to ensure a successful communication approach:

• The communication must come from the top; CEO, MD, CIO etc. − ownership is required
• There is nothing better than ‘face to face’ communication for employee/supplier briefings – think about ‘Town Halls’. Future communication can be from line managers
• Communication is two way and therefore, at the very least, there should be a Q&A board that people can refer to
• It is important to make sure the messages given to employees are consistent with conversations with external parties, e.g. 3^rd party suppliers, you never know ‘who knows who’
• The timing of communication is so important; make sure stakeholders are aligned, singing from the same hymn sheet in perfect time. Don’t send that email about organisational change on a Friday, as employees will spend the whole weekend worrying about it, with no recourse to senior management.

Questions for Outsourcing Decision Makers

1. How can effective communication and change management be integrated into our outsourcing journey to ensure that employees understand the reasons behind the change and feel more accepting and aligned with the transformation goals?

2. When considering the Communication Strategy for an outsourcing initiative, what are the key factors to be addressed, including the need to communicate the “why” behind the change to employees, consistent messaging across internal and external stakeholders, and the importance of timing and delivery methods (e.g., face-to-face communication, Q&A boards, etc.) to facilitate smooth information dissemination?

3. In light of past corporate communication disasters, how can we learn from those lessons and adopt best practices in communication to mitigate potential rumors, anxiety, and resistance among employees during the outsourcing process, ensuring a smoother transition and better outcomes for the organization and its people?

If you want to discuss these questions, or any other outsourcing challenges please do email us at experiencematters@ascea.co.uk and we can set up a call with you.