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Outsourcing Strategic Planning Essay

1203 words - 5 pages

Outsourcing
STR/581 - Strategic Planning and Implementation
March 17, 2014

Outsourcing
This Week’s Learning Team Paper will have two parts that will respond to two questions posed by our instructor Robert Powers:
In Part I the Team B, as the sole owner of an organization, will describe specific, strategic criteria that will be used to decide whether to outsource a particular function of a given organization. It will also describe the characteristics of a function that the team would never outsource.
In Part II the team will explain important functions that organizational leaders perform which are different from managers and why are they important. It will also provide ...view middle of the document...

We know that core competencies are those functions the firm does better than any of its competitors. When a function is among a firm’s core competencies, its quality will be highest when done from within the company. Quality levels can only decrease when those core competencies are outsourced to and performed by an outside firm.
The second characteristic of a function that should never be outsourced is a function which requires proprietary information in order to be performed (Outsourcing-Law, 2014). For example, a restaurant would not want to hand over its recipe for the secret sauce and allow an outside firm to start making it. That sauce is likely what made this particular restaurant successful, and that success could be compromised should the recipe fall into the wrong hands.
The third characteristic of a function which should never be outsourced is one that is always changing (Outsourcing-Law, 2014). For example, in today’s health insurance world, which is constantly changing, it would not make sense to outsource the implementation of an exchange strategy. Any aspect of health care reform has and will continue for the foreseeable future continue to bring change to the industry.
Important Functions that Leaders Perform
Leaders and Managers each have a specific role to play and understanding these is important. “Management is problem-oriented and leadership is opportunity oriented" (Covey, 1994, p. 48). First of all lets define what function is (function is the activities that managers or leaders engage with his or her job). Leadership function is coaching, inspiring and setting a vision, while manager functions are directing, organizing, and planning. What makes them different from each other are, leadership create ideas and strategies the make the changes in the company. For example, the leader wants the company to make 60% profits for the next two years. A manager’s job is helping the leader break the task down and perform the work. Like monitoring the sell closely every quarter, keeping the employee inline, making sure employee produce more sells. A leader also has to coach and mentor the team, like offering skills classes for the employees to take every quarter to review their knowledge. Sit down with the manager and the employee to understand their work performance. Most important of all is to inspire the team like rewarding. For example, if the team or individual has met the sell goal for the company in that quarter, the leader should reward them with a picnic, tickets to NBC games, and so on.
Managers help leaders break down the task, they decide when and how it should be done. For example, a group of students have to write a team paper every week...

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