BPO Thought Process

BPO Thought Process

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

Stop endlessly transforming!

Category : BPO
It’s become an all too common practice that many of us are guilty of falling back on when engaged in transformation projects – we put in too many complicated processes to solve what are fairly simple issues and taks.  We encounter and accept the multiple layers built into the design and approval of support processes as well as duplicating these processes by country and business unit. And ultimately, our hard earned efforts become just another commodity service in which real customers perceive little or no value.
If we want to avoid these pitfalls, then it’s not good enough to be just “good enough.”  Meaning we stop spending weeks mapping as-is and to-be processes and months arguing about enablement tools which making little impact on the actual core business. Instead, it’s time for us to become true partners by de-commoditizing and focusing on creating real business value. How do we do this?  We have to work with our clients to focus on their customers, be bold, and drive people to get back to the basics.
The first step to getting there is to realize that while most people simply want a better way to do their jobs, sometimes improvements simply result in more over engineering. Why? Because too often, senior executives do not personally engage and change how business is done. We can help by transforming by doing less – let’s keep it simple and smart – stay focused on value and not just efficiency and effectiveness, and then, we can avoid commoditizing and creating services that in the end make little difference to the core business. For example, why spend months investing in more electronic ways of processing high volumes of invoices when the actual invoice amounts are low and most of the volume is unnecessary? Or why spend thousands choosing tools to support journal processing rather than fixing the policies that cause the journals in the first place?
In fact, the two key reasons that many businesses struggle to transform and simplify their processes include:
  • Enablement Tools: Overzealous process enthusiasts unnecessarily complicate how we do business and then hard-code their complications with technology.
  • Culture:  People wind up in pockets of empowerment and put their own ways of working into parts of the process. The end result is that we have multiple ways to do the same task none of which hugely increases business value.
Looking ahead, the BPO market is recognizing that being a sought after strategic partner means focusing on transformations that deliver true business value.  In fact the market is likely to see more consolidation of BPO providers in the next two years, especially with those companies that are focused on selling commodity, low cost services.  In the end, the losers will come out, and clients will need to be more careful about who they select as a partner. Those who remain focused on short-term results despite seeking innovations will end up with commodity services and a dissatisfied business whereas mature clients will more and more recognize the behaviors they need from a true BPO transformation partner.
In this area, Capgemini is a proven leader – month on month we monitor our client portfolio performance by value as well as efficiency and effectiveness. We bring our customers the best, long-term value by being thoughtful, smart and innovative. Our investments in transformation are focused not only on end-to-end process performance but primarily on the real business value that each transformation initiative brings to our clients and their customers.  

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Carina Smith

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