Some not-so-fond childhood memories motivate this week’s guest
blogger, Shawn McCray. Shawn is a partner and leader in TPI’s service
management and governance advisory practice.
Halloween is just around the corner here in the States, and that
reminds me of how much the Frankenstein monster used to scare me when I was a
kid. Something about disinterred body parts.
I’m a big boy now, but I’m still frightened by a beast built from
a hodgepodge of parts. I call it “Frankenstein Sourcing.” I see it all too
often: Companies using a little bit of that sourcing solution, a bit of
another, and so on. What’s missing is a real strategy that runs through and
pulls together all the activities. Not only do I see this across companies, but
it also occurs within business units.
Why so terrifying? The same adjectives one might apply to the
Frankenstein monster’s movements are apt words to describe such sourcing, like:
herky-jerky, uncoordinated and mismatched. This is the kind of sourcing that
leaves a lot of money on the table, and it’s a recurring feature, with 40% of
companies in TPI’s governance benchmark failing to have a corporate-wide body
to guide and coordinate outsourced activities.
Given the scope, scale, overall spend, and similarities in pursuing
and managing sourcing solutions through all parts of your business, our advice
to clients is simple: Get coordinated. It doesn’t require massive
overhead or cost. It’s mainly about communication and teamwork. Better to
tackle your sourcing issues now than to wait for when the bosses or
stakeholders come for you with lit torches.
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