Insight

Outsourcing: Ownership in a Micro-Sourcing strategy

Effective Micro-Sourcing places complete control and project ownership in a product manager's hands.

Brian C. Lewis

Brian C. Lewis

Director Advisory, Procurement & Outsourcing, KPMG US

+1 303-459-7903

The importance of change and communications management in adoption of Micro-Sourcing

Micro-Sourcing is a modern hybrid outsourcing strategy which contracts for multiple delivery models. To understand what that means, take a moment to remember the angst you felt when you handed the car keys to your teenager for the first time or when you were handed the keys to the car for the first time. This is the feeling product owners have when they first realize they, not a distant insider with insufficient knowledge, choose which delivery model(s) will drive the most value for the business at any point in the product lifecycle. Like your teenager, new product owners receive training and ongoing coaching to understand their role in the change journey. In turn, product owners become the change agent for Micro-Sourcing, demonstrating the responsiveness to changing business needs, managing delivery risk, and managing to an ever-shrinking budget while delivering more. This constant pressure requires constant bidirectional communication with the business to gather requirements and consistent communication with delivery teams across multiple delivery models to meet the requirements of the business in a timely fashion. So, this all sounds delightful, but it doesn’t tend to happen naturally. This approach is a significant change and requires planning, training, communication, stakeholder management, and, importantly, change management. KPMG recommends an outcome-based approach to change and communications management focused on five key principles: make it clear, make it known, make it real, make it happen, and make it stick. Another key to making Micro-Sourcing stick is devising the right pricing strategy for each of the delivery models, which we will cover in the next blog.

If you would like to read previous blogs in this series, visit Outsourcing (kpmg.us)