How do you design and implement effective governance and performance management systems for outsourcing?

1 Define your objectives and expectations

The first step to design and implement effective governance and performance management systems for outsourcing is to define your objectives and expectations clearly. You need to identify what you want to achieve, why you want to outsource, and how you will measure the results. You also need to communicate these objectives and expectations to your outsourcing provider, and make sure they understand and agree with them. You can use tools such as service level agreements (SLAs), key performance indicators (KPIs), and contracts to formalize and document your expectations.

3 Monitor your performance and quality

The third step is to monitor your performance and quality regularly and consistently. You need to track and evaluate how well your outsourcing provider is delivering on your objectives and expectations, and how they are meeting the SLAs and KPIs. You also need to check the quality of the work, the compliance with the standards and regulations, and the satisfaction of the end-users and stakeholders. You can use tools such as dashboards, reports, audits, and surveys to collect and analyze your performance and quality data.

4 Provide your feedback and recognition

The fourth step is to provide your feedback and recognition to your outsourcing provider. You need to share your observations, insights, and suggestions on how they can improve their performance and quality, and how they can align better with your goals and vision. You also need to acknowledge and appreciate their achievements, efforts, and contributions, and celebrate their successes. You can use tools such as feedback sessions, performance reviews, reward systems, and recognition events to communicate and motivate your outsourcing provider.

5 Manage your risks and issues

The fifth step is to manage your risks and issues proactively and effectively. You need to identify, assess, and prioritize the potential risks and issues that may affect your outsourcing project, such as changes in scope, budget, timeline, or quality. You also need to plan and implement mitigation and contingency actions to prevent or minimize the impact of these risks and issues. You can use tools such as risk registers, issue logs, contingency plans, and escalation protocols to manage your risks and issues.

6 Review and improve your systems

The sixth and final step is to review and improve your governance and performance management systems for outsourcing. You need to evaluate the effectiveness and efficiency of your systems, and identify the strengths, weaknesses, opportunities, and threats. You also need to implement changes and improvements based on your feedback, lessons learned, best practices, and changing needs. You can use tools such as SWOT analysis, gap analysis, benchmarking, and continuous improvement cycles to review and improve your systems.