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To Outsource Is To Grow: Why It’s Good To Hand Over The Reins

One of the major problems faced by business owners all over the world is knowing when to let go. There are plenty of reasons why. As a company owner, you are used to making the decisions and there is a good chance you like to keep things under your control. As much as you like to think you are running a tight ship, if you are lending your hand to every aspect of your business, there is a very good chance you are spreading yourself thin. And at that point, it’s time to give yourself a break.

To Outsource Is To Grow: Why It's Good To Hand Over The Reins
Photo courtesy of Flazingo

You can’t do it all

You are right when you think you are the best person to lead your business, but you just can’t do everything. Delegating to a trusted employee is a perfect fit for the day-to-day running of your company. But what about those times when you have a special project or need help to explore emerging technology? Outsourcing to professional services may be the quickest and easiest way of handing these situations.

Specialist knowledge

Specialist companies will have a much deeper understanding of their industry than you can expect your employees to have. Sure, they know your business inside out but they may not know how to maximize your opportunity in particular areas. Let’s say your current in-house software system is bogging down from a recent influx of customers. In this case, IT outsourcing is likely to be better for you than leaving things to your under-pressure support team who may be challenged by their current workload.

The money

There are financial factors too, and your operational costs may be lower when outsourcing. Let’s say you want a new website designed. The investment required to find, employ, and train staff to do so often outweighs that of the one-off cost you would pay a freelancer or a small web developer company. There are offshore markets to explore too. Many highly skilled developers can be found in emerging markets such as India, where costs are far lower. Making use of modern communications technology makes it easy to share projects and get the same quality of work as you would get from your local town. And all for a lot less money.

Resources

At the end of the day, it’s all about resources: if you don’t have enough of them, you can’t possibly expect to grow. You may get a surge of new customers but if your team isn’t big enough to handle it, the influx could strike a serious blow to your business. Outsourcing at the right times and in the right areas mitigates your risk and opens up new possibilities. If you don’t free up the reins, stagnation – and possible implosion – is likely to be waiting for you at the next corner.

The Big Picture of Business – The Making of a Classic: Houston Legends. How Entrepreneurs and Business Made City Grow.

My sixth book is Houston Legends, a definitive history of a dynamic global capitol.

Houston was the first word spoken from the moon. It is the hub of the world’s energy industry, headquarters of medical innovation and entrepreneurial phenomena. For 200 years, Houston has been the funnel to international commerce.

Houston Legends contains secrets of CEOs, trail blazers and community impresarios, from superstar Beyoncé to heart transplant pioneer Dr. Michael Debakey, from aviation pioneer and Hollywood movie mogul Howard Hughes to Amazon founder Jeff Bezos, from business titan Jesse Jones to community visionary George Mitchell, from oil drilling inventions to NASA space explorers.

I chose representative industries and community service niches as snapshots of a wider photo album. Not every name and fact is in here, but this business focused look gives perspective to modern life. Recurring themes include pioneer spirit, business innovation, community give-back, growth and vision.

I am a business guru at the national and international levels. My other books are about business, save one on Hollywood (which is big business). This book is a nostalgic stroll down memory lane in Houston, with small doses of business advice thrown in. The purpose was to recall and remember our heritage of business, entrepreneurship and the will to achieve even more.

In researching for this book, I studied dozens of others. Most were picture books and dwelled in the old days from community settlement and emerging society perspectives. It was nice to read about the fight for Texas independence and see pictures of all the old homes that used to be located downtown. This book looks at specters of business, commerce, distribution, consumption and opportunity, which typify Houston’s dynamic growth. Hopefully, this history compliments those books full of old pictures.

I started visiting Houston in the early 1950’s. I had an aunt, uncle and cousins that lived here. Houston was so much bigger and more cosmopolitan than the little town that I lived in (Austin). Today, I see Houston as a collection of communities, economic engines and entrepreneurial opportunities. I work all over the world and finally got the opportunity to write a hometown book.

Houston represents many things to many people. This is where we live and work, where we are educated and entertained, where culture and community pride are stimulated and where we learn some lessons in living together with others.

Houston is a growth community. It has seen industries emerge and mature. It boasts generations of healthy families. It encompasses lifestyles, cultures and opportunity that no other world-class city can match.

Yet, when you look at Houston, it is a collection of neighborhoods, business districts and quality lifestyles. Houston embodies many growing communities, the confluence being an international hub for this nation. Creative partnerships account for Houston’s documented growth.

As the city lives the 21st Century, we celebrate the historical, utilize state-of-the art technology and reflect changing social needs will always be at the forefront of the future. With a sense of pride, reflection and optimism for the future, Houston’s business is dedicated to identifying, meeting and serving every need of our community.

Houston is a collection of neighborhoods, cultures and families. Communities which grow and prosper will analyze and serve the needs of present generations. While honoring the heritage, we carefully plan for the future. Whether in the global sense or on the blocks on which we live, layers of generations comprise our essence.

Every community is a collection of lifestyles, inspired through the structures in which they take place are centers of synergy. Houston leaders are contributing to the quality of life and encompass the needs and activities of Houstonians.

Everywhere that you look in Houston, you see the fingerprints of business. This includes downtown, the Medical Center, the universities and colleges, the Galleria, NASA, Greenway Plaza, entertainment and sports facilities, airports, churches, and schools. As business and industry were challenged to perform at their highest standards, the entire community has benefited exponentially. In the minds of innovators and those who have followed, we care, we achieve, and we look for ways to get better at what we do.

As a result, Houston has experienced several eras of planned, sustained growth. We’re more than a boom or a trend. When reading this history of Houston, you will find the legacy of business on almost every page. Orderly growth has been achieved by mastering technology, business standards and adapting to changing community dynamics. Entrepreneurs have embraced innovation, creativity, safety and commitment to quality.

The best indicator of progress made is to periodically re-examine our best work, celebrate the teamwork involved and then re-apply the winning ingredients toward the next phase of growth. Because our community has mastered the fine art of collaboration, we have many great successes to recognize and admire. Houston Legends are symbolic of the mission and actual practices of community leaders, bringing the best minds and resources into successful business partnerships.

Every facet of business plays a part in facilitating orderly community growth. As our communities prosper, so do our member firms. Collectively, we make artistic, technical, procedural and economic differences in the greater Houston area.

As the city progresses through the 21st Century, we celebrate the historical, utilize state-of-the-art technology and continually seek to improve the quality of life. Strategies which address and reflect changing social needs will always be at the forefront of the future.


About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – How and When to Collaborate, for Best Business Advantage.

The biggest source of growth and increased opportunities in today’s business climate lie in the way that individuals and companies work together. This article is a follow-up to my last column, “Collaborations, Partnering and Joint-Venturing.”

Situations Which Call for Teams to Collaborate

  1. Business Characteristics. Most industries and core business segments cannot be effectively served by one specialty. It is imperative that multiple disciplines within the core business muster their resources.
  2. Circumstances. People get thrown together by necessity and sometimes by accident. They are not visualized as a team and often start at cross-purposes. Few participants are taught how to best utilize each other’s respective expertise. Through osmosis, a working relationship evolves.
  3. Economics. In today’s downsized business environment, outsourcing, privatization and consortiums are fulfilling the work. Larger percentages of contracts are awarded each year to those who exemplify and justify their team approaches. Those who solve business problems and predict future challenges will be retained. Numerically, collaboration contracts are more likely to be renewed.
  4. Demands of the Marketplace. Savvy business owners know that no one supplier can “do it all.” Accomplished managers want teams that give value-added, create new ideas and work effectively. Consortiums must continually improve, in order to justify investments.
  5. Desire to Create New Products and Services. There are only four ways to grow one’s business: (1) sell more products-services, (2) cross-sell existing customers, (3) create new products-services and (4) joint-venture to create new opportunities. #3 and 4 cannot be accomplished without teaming with others.
  6. Opportunities to Be Created. Once one makes the commitment to collaborate, circumstances will define the exact teaming structures. The best opportunities are created.
  7. Strong Commitment Toward Partnering. Those of us who have collaborated with other professionals and organizations know the value. Once one sees the profitability and creative injections, then one aggressively advocates the teaming processes. It is difficult to work in a vacuum thereafter. Creative partnerships don’t just happen…they are creatively pursued.

What Collaborations, Partnering and Joint-Venturing Are NOT:

  • Shrouds to get business, where subcontractors may later be found to do the work.
  • Where one partner presents the work of others as their own.
  • Where one party misrepresents his-her capabilities… in such a way as to overshadow the promised team approach.
  • Where one partner treats others more like subcontractors or vendors.
  • Where one participant keeps other collaborators away from the client’s view.
  • Ego fiefdoms, where one participant assumes a demeanor that harms the project.
  • Where cost considerations preclude all partners from being utilized.
  • Where one partner steals business from another.
  • Where non-partners are given advantageous position over ground-floor members who paid the dues.
  • Where one or more parties are knowingly used for their knowledge and then dismissed.

Who Wants to Collaborate:

  • Those who have not stopped learning and continue to acquire knowledge.
  • Those who are good and wanting to get progressively better.
  • Those who have captained other teams and, thus, know the value of being a good member of someone else’s team.
  • Those who do their best work in collaboration with others.
  • Those who appreciate creativity and new challenges.
  • Those who have been mentored and who mentor others.
  • Those who don’t want to rest upon their laurels.
  • Those who appreciate fresh ideas, especially from unexpected sources.

Who Does NOT Want to Collaborate:

  • Those who have never had to collaborate, partner or joint-venture before.
  • Those who don’t believe in the concept… and usually give nebulous reasons why.
  • Those who think they’re sufficiently trained and learned to conduct business.
  • Those who want only to be the center of attention.
  • Those who fear being compared to others of stature in their own right.
  • Those who think that the marketplace may not buy the team approach.
  • Those who are afraid that their process or expertise will not stand the test when compared with others.
  • Those who had one or two bad experiences with partnering in the past… usually because they were on the periphery or really weren’t equal partners in the first place.

7 Stages of Relationship Building… Customers, Business Partners

  1. Want to Get Business. Seeking rub-off effect, success by association. Sounds good to the marketplace. Nothing ventured, nothing gained. Why not try!
  2. Want to Garner Ideas. Learn more about the customer. Each team member must commit to professional development…taking the program to a higher level. Making sales calls (mandated or voluntarily) does not constitute relationship building.
  3. First Attempts. Conduct programs that get results, praise, requests for more. To succeed, it needs to be more than an advertising and direct marketing campaign.
  4. Mistakes, Successes & Lessons. Competition, marketplace changes or urgent need led the initiative to begin. Customer retention and enhancement program requires a cohesive team approach and multiple talents.
  5. Continued Collaborations. Collaborators truly understand teamwork and had prior successful experiences at customer service. The sophisticated ones are skilled at building and utilizing colleagues and outside experts.
  6. Want and advocate teamwork. Team members want to learn from each other. All share risks equally. Early successes inspire deeper activity. Business relationship building is considered an ongoing process, not a “once in awhile” action or marketing gimmick.
  7. Commitment to the concept and each other. Each team member realizes something of value. Customers recommend and freely refer business to the institution. What benefits one partner benefits all.

Successes with Collaborations and Joint-Ventures…

  • Crisis or urgent need forced the client to hire a consortium.
  • Time deadlines and nature of the project required a cohesive team approach.
  • The work required multiple professional skills.
  • Consortium members were tops in their fields.
  • Consortium members truly understood teamwork and had prior successful experiences in joint-venturing.
  • Consortium members wanted to learn from each other.
  • Early successes spurred future collaborations.
  • Joint-venturing was considered an ongoing process, not a “once in awhile” action.
  • Each team member realized something of value.
  • The client recommended the consortium to others.

Truisms of Collaborations…

  • Whatever measure you give will be the measure that you get back.
  • There are no free lunches in life.
  • The joy is in the journey, not in the final destination.
  • The best destinations are not pre-determined in the beginning, but they evolve out of circumstances.
  • Circumstances can be strategized, for maximum effectiveness.
  • You gotta give to get.
  • Getting and having are not the same thing.
  • One cannot live entirely through work.
  • One doesn’t just work to live.
  • As an integrated process of life skills, career has its place.
  • A body of work doesn’t just happen. It’s the culmination of a thoughtful, dedicated process… carefully strategized from some point forward.
  • The objective is to begin that strategizing point sooner rather than later.

My Own Disappointments with Previous Collaborations…

  • Failure to understand – and thus utilize – each other’s talents.
  • One or more participants have had one or a few bad experiences and tend to over-generalize about the worth of consortiums.
  • One partner puts another down on the basis of academic credentials or some professional designation that sets themselves apart from other team members.
  • Participants exhibit the ‘Lone Ranger’ syndrome… preferring the comfort of trusting the one person they have counted upon.
  • Participants exhibit the “I can do that” syndrome… thinking that they do the same exact things that other consortium members do and, thus, see no value in working together, sharing projects and referring business.
  • Junior associates of consortium members want to hoard the billing dollars in-house, to look good to their superiors, enhance their billable quotas or fulfill other objectives that they are not sophisticated enough to identify.
  • Junior associates of consortium members refuse to recognize seniority and wisdom of other associates… utilizing the power of the budget to control creative thoughts and strategic thinking of subcontractors.

My Suggested Reasons to Give the Concept a Chance…

  • Think of the “ones that got away”… the business opportunities that a team could have created.
  • Think of contracts that were awarded to others who exhibited a team approach.
  • Learn from industries where consortiums are the rule, rather than the exception (space, energy, construction, high-tech, etc.).
  • The marketplace is continually changing.
  • Subcontractor, supplier, support talent and vendor information can be shared.
  • Consortiums are inevitable. If we don’t do it early, others will beat us to it.

About the Author

Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

The Big Picture of Business – Collaborations, Partnering and Joint-Venturing… Priority for Business.

The biggest source of growth and increased opportunities in today’s business climate lie in the way that individuals and companies work together.

It is becoming increasingly rare to find an individual or organization that has not yet been required to team with others. Lone rangers and sole-source providers simply cannot succeed in competitive environments and global economies. Those who benefit from collaborations, rather than become the victim of them, will log the biggest successes in business years ahead.

Just as empowerment, team building and other processes apply to formal organizational structures, then teamings of independents can likewise benefit from the concepts. There are rules of protocol that support and protect partnerships…having a direct relationship to those who profit most from teamings.

Definitions of these three terms will help to differentiate their intended objectives:

  • Collaborations – Parties willingly cooperating together. Working jointly with others, especially in an intellectual pursuit. Cooperation with an instrumentality with which one is not immediately connected.
  • Partnering – A formal relationship between two or more associates. Involves close cooperation among parties, with each having specified and joint rights and responsibilities.
  • Joint-Venturing – Partners come together for specific purposes or projects that may be beyond the scope of individual members. Each retains individual identity. The joint-venture itself has its own identity… reflecting favorably upon work to be done and upon the partners.

Here are some examples of Collaborations:

  • Parties and consultants involved in taking a company public work together as a team.
  • Niche specialists collectively conduct a research study or performance review.
  • Company turnaround situation requires a multi-disciplinary approach.
  • A group of consultants offer their collective talents to clients on a contract basis.
  • The client is opening new locations in new communities and asks its consultants to formulate a plan of action and oversee operating aspects.
  • Professional societies and associations.
  • Teams of health care professionals, as found in clinics and hospitals.
  • Composers and lyricists to write songs.
  • Artists of different media creating festivals, shows and museums.
  • Advocate groups for causes.
  • Communities rallying around certain causes (crime, education, drug abuse, literacy, youth activities, etc.).
  • Libraries and other repositories of information and knowledge.

Here are some examples of Partnering:

  • Non-competing disciplines create a new mousetrap, based upon their unique talents, and collectively pursue new marketplace opportunities.
  • Widget manufacturing companies team with retail management experts to open a string of widget stores.
  • A formal roll-up or corporation to provide full-scope professional service to customers.
  • Non-profit organizations banning resources for programs or fund-raising.
  • Institutions providing start-up or expansion capital.
  • Managing mergers, acquisitions and divestitures.
  • Procurement and purchasing capacities.
  • Corporations working with public sector and non-profit organizations to achieve mutual goals in the communities.
  • Private sector companies doing privatized work for public sector entities.
  • Organ donor banks and associations, in consortium with hospitals.
  • Vendors, trainers, computer consultants and other consultants who strategically team with clients to do business. Those who don’t help to develop the business on the front end are just vendors and subcontractors.

Here are some examples of Joint-Venturing:

  • Producers of energy create an independent drilling or marketing entity.
  • An industry alliance creates a lobbying arm or public awareness campaign.
  • Multiple companies find that doing business in a new country is easier when a consortium operates.
  • Hardware, software and component producers revolutionizing the next generation of technology.
  • Scientists, per research program.
  • Educators, in the creation and revision of curriculum materials.
  • Distribution centers and networks for retail products.
  • Aerospace contractors and subcontractors with NASA.
  • Telecommunications industry service providers.
  • Construction industry general contractors, subcontractors and service providers in major building projects.
  • Group marketing programs, such as auto dealer clusters, municipalities for economic development, travel and tourism destinations, trade association and product image upgrades.
  • International trade development, including research, marketing, relocation, negotiations and lobbying.

Characteristics of a Good Collaborator:

  • Already has a sense of self-worth.
  • Has a bona fide track record on their own.
  • Have a commitment toward knowledge enhancement.
  • Walk the Talk by their interactions with others.
  • Supports collaborators in developing their own businesses, offering referrals.
  • Have been on other teams in the past… with case studies of actually collaborations.
  • Have successes and failures to their credit, with an understanding of the causal factors, outcomes and lessons learned.

  • Benefits for participating principals and firms include…

    • Ongoing association and professional exchange with the best in respective fields.
    • Utilize professional synergy to create opportunities that individuals could not.
    • Serve as a beacon for professionalism.
    • Provide access to experts otherwise not known to potential clients.
    • Refer and cross-sell each others’ services.
    • Through demands uncovered, develop programs and materials to meet markets.

    About the Author

    Hank MoorePower Stars to Light the Business Flame, by Hank Moore, encompasses a full-scope business perspective, invaluable for the corporate and small business markets. It is a compendium book, containing quotes and extrapolations into business culture, arranged in 76 business categories.

    Hank’s latest book functions as a ‘PDR of business,’ a view of Big Picture strategies, methodologies and recommendations. This is a creative way of re-treading old knowledge to enable executives to master change rather than feel as they’re victims of it.

    Power Stars to Light the Business Flame is now out in all three e-book formats: iTunes, Kindle, and Nook.

Resistance to Guidance: Why Sales, Coaching, and Leadership Practices Falter

Do you know what’s stopping you or your company from making the changes necessary to have more success? Or why prospects aren’t buying something they need? Or why clients aren’t adopting the changes they seek? The problem is resistance. And as change agents we’re inadvertently creating it.

Change requires that a complacent status quo risk its comfort for something unknowable – the probable loss of narrative, expectations, habitual activities and assumptions with no real knowledge of what will take its place. People don’t fear the change; they fear the disruption.

The Status Quo of the System

To understand why our status quo is tenacious we must understand systems. Simply, a system – for the sake of this article families, corporations, or individuals – is:

  1. a collection of policies, beliefs, agreements, goals and history, uniquely developed over time, which
  2. embrace uniform rules that are
  3. recognized and accepted by all and
  4. constitute the foundation of all decisions.

Because of the law of homeostasis (simply, all systems seek stability) any change potentially disrupts the status quo and will be resisted, even if the ‘new’ is more effective; even if the system seeks the change; even if the persuader is skilled at persuasion tactics.

Until or unless a system is able to shift its rules so that the new product, idea or implementation has the ability to fit in and new rules are adopted that reconfigure the status quo from within, change faces an uphill battle. The system is sacrosanct.

To get folks to change their minds or accept a solution and avoid resistance, it’s necessary to first:

  • help the system discover the differences between the new and the old,
  • help the system discover the details of the risk,
  • facilitate an acceptable route to managing the risk,
  • facilitate buy-in from the right people/elements

regardless of the efficacy of the proposed change or the need.

Our Guidance Pushes Against Stable Systems

Entire fields ignore these change management issues to their detriment:

  • the sales model fails 95% of the time because it attempts to push a new solution into the existing status quo, without first facilitating a buyer’s non-need change issues;
  • coaches end up needing 6 months with clients to effect change as they keep trying to push new behaviors into an old system – and then blame clients for not listening’ or believing they have the ‘wrong’ clients;
  • consultants and leaders have a high rate of failed implementations as they attempt to push the new into the old without first collaboratively designing new structures that will accept the change.

Persuasion and manipulation tactics and guidance strategies merely push against a stable system. As outsiders, it’s unlikely we can acquire the historic knowledge and consensus from all relevant insiders, or design the new rules for systemic change, for our ideas or solutions to gain broad acceptance throughout the system.

We can, however, facilitate the system in changing itself. Then the choice of the best solution becomes a consequence of a system that is ready, willing, and able to adopt excellence.

Obviously, having the right solution does not cause change: pitching, suggesting, influencing, or presenting before a system has figured out how to manage change is not only a time waste, but causes resistance and rejection of the proposed solution. So all of our logic, rational, good content, reasoning, or persuasion tactics are useless until the system is ready. Facilitate change first, then offer solutions in the way that the system can use it.

The question is: do you want to place a solution? Or expedite congruent change?

Listening for Systems, Facilitating Change

For the past 30 years I have designed unique models that facilitate change from the inside. Used in sales, and now being used in the coaching industry, my Buying Facilitation® model offers a unique skill set that teaches systems how to change themselves, and includes listening for systems rather than content, and a new way to use questions (Read Dirty Little Secrets (www.dirtylittlesecretsbook.com.).But whether you use my model or develop one of your own, you must begin by facilitating change, not by attempting to first ‘understand need’ or place a solution or idea.

I’m suggesting that you change your accustomed practices: the idea of no longer listening for holes in a client’s logic to offer guidance goes against the grain of sellers, coaches, and consultants. By listening for systems, by focusing on facilitating change and enabling consensus and change management, change agents are more likely to sell, coach, and implement.

I’ve written a new book (What?) to help you hear what others are really saying rather than just what you want to hear. I’ve made it free: www.didihearyou.com. Read it, and then let’s start a conversation. Let’s begin to think of managers, sellers, leaders, and coaches as true consultants who can hear what their clients mean. Let’s add a few facilitation skills and be the agents of real change with integrity.


About the Author

Sharon Drew Morgen is founder of Morgen Facilitations, Inc. (www.newsalesparadigm.com). She is the visionary behind Buying Facilitation®, the decision facilitation model that enables people to change with integrity. A pioneer who has spoken about, written about, and taught the skills to help buyers buy, she is the author of the acclaimed New York Times Business Bestseller Selling with Integrity and Dirty Little Secrets: Why buyers can’t buy and sellers can’t sell and what you can do about it.

To contact Sharon Drew at [email protected] or go to www.didihearyou.com to choose your favorite digital site to download your free book.