It’s About People Management

Today’s blog comes from Jeff Krynski, Governance Competency Leader, CHRO Services, TPI.

Successful
HRO management starts and ends with people. No shock there. But if you look at
companies that set up a provider management function, you’ll see they stand a
much higher chance of having proven, best-practices in place and a higher
success rate than those that don’t. That’s why getting the right team and
structure in place before the service provider selection process is an
imperative.

A provider
management advisory partner helps companies that require a swift, sure,
cohesive action plan to navigate the complexities of HRO. The success of any
HRO relationship depends not only on implementation, but on the development of
a disciplined approach during the strategy and assessment phase, and its
management moving forward.

HRO success
starts with a strategic provider management team. The size and structure of a
provider management team that oversees the outsourcing arrangement depends not
only on the size and complexity of the sourcing relationship, but on the
framework of internal organization as well.

 

 

 

Each
provider management organization should possess a framework for clarifying the
workload and skills that need to be fulfilled, which includes:

• Performance management –
  ensuring the right work is done right
• Cost management – managing and
  validating those functions that impact the cost of the service
• Contract administration –
  ensuring compliance over the term of the service provider relationship
• Relationship management –
  encompasses direction setting and assuring satisfaction with the Provider
  management function

The HRO
provider management team roles are not necessarily mutually exclusive, as many
components or roles may overlap and thus may be effectively maintained with
fewer resources. And even though the responsibility for providing quality
service falls to the service provider, the company outsourcing is tasked with
overseeing the relationship.

At the end
of the day, outsourcing demands a paradigm shift, and you’ll have to give
serious consideration to the resources assigned to the provider management
function.