Successful onboarding a service provider in your ecosystem
When your company outsources services to a service provider, there are certain elements related to the onboarding of that service provider that require specific attention to ensure that your organization can get the maximum value from outsourcing.
These elements are:
- Information: we will exchange as much information as possible during the onboarding of that service provider.
- Relationships: through onboarding we want to set the tone for a successful relationship, in which collaboration is key.
- Transition: the goal of onboarding is to facilitate and guide the transition.
- Trust: we want to stimulate trust in the service provider through transition guidance.
- Human factor: in the transition from an old situation to a new situation (change), the attitude and behavior of people and the culture within the organization must always be taken into account.
To ensure that your organization gets the most out of the services provided by the new service provider, it is best to set up an onboarding process. During this process, you will fully inform the service provider of your needs, provide insight into your assets and processes so they can tailor their services to your needs. Finally, you draw up a step-by-step plan, where communication and collaboration are central.
Unfortunately, there is no “1 size fit all” process, but based on our experiences with customers, we provide you with the high-level steps of an onboarding process, including a number of key success factors.
The goal of due diligence is to give the service provider full knowledge of your needs. This is done through a thorough assessment of your capabilities to identify the details, risks, pain points, opportunities and inefficiencies.
This step also provides the service provider with insight into your assets and business processes in order to tailor the services provided to your needs. A number of key success factors during this phase are:
During the transition planning, a handover roadmap is drawn up to the new service provider, in which collaboration, communication and the human factor are very important elements. The availability of resources and budget must also be taken into account. A number of key success factors during this phase are:
This is the actual onboarding of the new service provider in the ecosystem. A number of key success factors during this phase are:
Run & Improve
Once the transition is done, the operating model comes into action. It is during this “Run & Improve” phase that the real value of outsourcing the services must be achieved. Next to the day-to-day operations and the coordination of the service providers, the detection and implementation of improvement initiatives are important parts of this phase. An important key success factor during this phase is encouraging positive behavior.
KPIs and measurements can be a source of frustration in an outsourcing environment because each party has a different way of defining and measuring ‘success’, or because an inconsistent method is used to measure them at different service providers. That is why it is important in the first instance to capture shared success and make agreements about measuring success during the due diligence phase, but measurements are also important during run and improve.
The way we measure our collaboration with our service providers has a major impact on their way of working and their behavior in dealing with each other and the customer organization. Your measurements should encourage positive desired behavior. By positive behavior we mean:
- Focus on the business and its needs
- Customer focus
On the other hand, you must make sure that your measurements do not encourage negative undesirable behavior, such as:
- Silo Thinking
- Lack of empathy
Do you have any questions, or would you like to know more about how to set up your onboarding process for service providers? Do not hesitate to contact me!