Articles
Duncan Hall, executive president of Bilfinger Industrial Services
Bilfinger employs 9,000 people in the UK to deliver services from facilities management to maintenance solutions to clients from RBS to BP and Shell in the North Sea. Like the best suppliers, we adapt our business model to support the client. It can’t just be a one-size-fits-all situation.
The best time to start thinking about outsourcing is when you are looking at your strategy and are considering what resources you need. If something is non-core then other companies may have more expertise in delivering it than you, or you may want to look at different operating models to improve efficiency or flexibility.
First off, you must be clear and honest about what you want and your expectations. Think about the level of service you require. Where do you want to shop – high-end Waitrose, mid-range Sainsbury or cheapest Lidl?
It’s worth remembering that you can’t just outsource a problem. You should be clear about what the problem is and work with your supplier to outsource the solution. You should only be transferring the risk that your outsourcer can manage.
The key is planning. For example, you can’t shift from a reactive maintenance regime to condition monitoring if you haven’t got process and maintenance condition knowledge in the first place. Your organisation will have to make that shift first, with the supplier, so be honest about where you are. That starts from the initial meeting, where you should be devising a viable plan with realistic timescales.
Change will happen on day one, but you need to have realistic expectations and so does the supplier. It’s a journey and you should work out key milestones – 30 days, three months, nine months, one year, and so on – to gauge progress.
Explain your strategy to your internal stakeholders and your potential suppliers. Then you have to align yourself to that strategy, including the cultural elements.