achieve more with less: efficiencies and values of strategic insourcing

Speaker: Stacey L.T. Boyle, Ph.D.

Vice President, HCM Advisory Group Human Capital Media

Moderator: Daniel Margolis

Managing Editor Chief Learning Officer magazine

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Achieve More With Less: Efficiencies and Values of Strategic Insourcing

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Daniel Margolis Managing Editor Chief Learning Officer magazine


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Stacey L.T. Boyle, Ph.D. Vice President, HCM Advisory Group Human Capital Media


HCM Advisory Group Webinar

October 20, 2011

Achieving More with Less

Through

Strategic Insourcing

Stacey Boyle, Ph.D.

Vice President, HCM Advisory Group Chief Learning Officer Magazine

What we will cover!!

Definition of terms/overview of resource models!!

Review of HCM research project!!Research Method""Survey demographics"

"

Presentation of main findings!!Current L&D resource model""Perceptions about insourcing model""Where and how it is deployed""Reasons to deploy or NOT to deploy""Perspectives on the L&D workforce of the future"""

!!!!

Itʼs a terminology jungle out there…!

OUTSOURCING

OUT-TASKING

STRATEGIC INSOURCING

Straightening out the terminology jungle!

Definition criteria!!

What is outsourced – function, job, task, process, project!Length of time of the assignment"

Assimilation of the resource into the organization"

Work location: on-site, off-site, virtual, local, global"

Degree in which client directs the third party"

Integration of intellectual capital into the clientʼs knowledge base"

"


Outsourcing!Business Process Outsourcing!

!Third party resource is hired to take over ongoing functions over longer time frames, sometimes years"

In the case of BPO, itʼs entire business functions that are taken over by the third party"

This third party is generally not assimilated into the existing full time employee team, and generally works off-site"

Activities of the third party are partially directed by the client"

Intellectual capital employed on behalf of the client not directly shared or fully integrated into the clientʼs knowledge base"


Off-shoring!"

Similar to outsourcing, but the entire business function or process is relocated from one country to another "

"


Temporary staffing!!

Third party resource is hired to temporarily take over specific job – often of a tactical nature"

Length of time of the assignment is typically weeks or months"

Resource is typically assimilated into the employee team – to the degree that is practical and/or desirable "

Activities of the third party are directed by the client"

Any intellectual capital employed on behalf of the client is generally not integrated into the clientʼs knowledge base"

"


Strategic insourcing!!

Third party resource (e.g. a contractor, consultant) is deployed on-demand to take on specific function, project or assignment. Projects are of a strategic nature, requiring specific knowledge and skills"

Resource is hired for projects of relatively short duration (months or weeks)"

Resource is assimilated into the existing full time employee team, working with them on a day-to-day basis, either onsite or virtually "

Activities of the third party are directed by the client"

Intellectual capital employed on behalf of the client is directly shared and fully integrated into the clientʼs knowledge base"

"

‘As of Q4 2010, consultants, independent contractors and other contingent workers accounted for

nearly 68% of new private sector jobs"̓

"" " ""US Dept. of Labor""

The increasing need to manage a ʻblended workforceʼ !

!!

!Research Project!

!

Working hypothesis!

Strategic insourcing is the future supplemental learning

& development resource model"

"

!

Research method!

In-depth analysis of L&D outsourcing and insourcing data""Focus group with insourcing partners""Survey of senior learning practitioners"

!

Survey demographics!

488 completed surveys""Variety of industries and

state, local and federal government"

"

Small Less than 5,000

47%

Medium 5,000-10,000

14%

Large Greater than

10,000 39%

Number of Employees

!

Survey demographics!

""57% do not "insource L&D resources"

"

Very dissatisfied,

2.9% Dissatisfied,

3.9% Neither dissatisfied or

satisfied, 14.6%

Satisfied, 58.0%

Very satisfied, 20.5%

43% insource L&D resources"

!

POLL!How do you currently resource your L&D projects

and initiatives?!(select all that apply)!

•  Employ full time L&D staff

•  Outsource some project work

•  Outsource some L&D roles

•  Insource some projects

•  Insource some L&D roles

•  Employ part time L&D staff

78.4%

35.5%

29.8%

27.3%

22.3%

12.0%

Employ full-time L&D staff

Outsource some project work

Outsource some L&D roles

Insource some projects

Insource some L&D roles

Employ part-time L&D staff

!

Current L&D resource model!Survey data!

Perceptions about insourcing! 66% agree strategic insourcing is a great way to supplement traditional resource models""53% agree that insourcing provides greater flexibility in meeting its staffing needs""46% agree an insourcing resource can help generate greater productivity from full-time employees - as third-party experts they share expertise with the full-time team""22% believe that strategic insourcing will eventually replace traditional resourcing models"

59% agree that insourced resources represent a proven talent pool from which permanent positions could be filled if needed (i.e. a trial period prior to hiring)

54% agree that insourced L&D resources represent ‘on-demand’ human capital

40% believe that the insourcing resource model fits better with the incoming millennial workforce

31% state that insourcing saves their L&D department money

Perceptions about insourcing!

47.6%

42.0%

37.2%

36.1%

28.2%

27.3%

25.5%

Business skills

Leadership and executive development

IT skills

Project management /process

Technical

Compliance

Career development

Where are insourced resources deployed?!

Representation by L&D roles!51.1%

48.9%

41.3%

39.6%

34.3%

30.9%

28.2%

26.3%

26.1%

E-learning consultant

Instructional designer

Audio/video expertise

Classroom instructor

Curriculum development consultant

Technical writing and documentation consultant

Leadership development consultant

Learning management systems consultant

Change management consultant

Perspectives on the L&D workforce of the future!

5%

1%

2%

1%

15%

7%

11%

12%

19%

14%

15%

33%

30%

40%

42%

39%

26%

36%

27%

14%

5%

1%

2%

1%

In the near future, my L&D workforce will need to become more global.

In the near future, my L&D workforce will need to become more virtual.

In the near future, my L&D workforce will need to be staffed based on skill set with less concern on working

location.

I see a great benefit in strategic insourcing as a resource model for my L&D function in the near future.

Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree N/A

!POLL!

Identify which of the following resourcing options you plan to use LESS of in the near future… !

(select all that apply)!







!POLL!

Identify which of the following resourcing options you plan to use MORE of in the near future… !








!POLL!

Identify where you think usage will remain THE SAME in the near future… !








Perspectives on the L&D workforce of the future!

Survey data!

10%

14%

12%

13%

14%

13%

38%

64%

55%

58%

58%

59%

52%

22%

34%

29%

28%

27%

Employ full-time L&D staff

Employ part-time L&D staff

Outsource some project work

Outsource some L&D roles

Insource some projects

Insource some L&D roles

2015 L&D resource model

Fewer Than Now Same As Now More than now

Main reasons to employ insourcing model!

Main reasons NOT to employ insourcing model!

Main conclusions!The insourcing resource models will play a greater role in the L&D workforce of the future – more than 86% of respondents plan to increase the use of insourced resources to meet future business needs"L&D resource deployment will focus on skills and will be increasingly virtual and global"Main benefits of the model are: access to specific skills and expertise, and cost control"Use of insourced resources will focus on business skills, leadership & executive development, and project management"

Q&A! "

Any questions?"

!!

Stacey Boyle, Ph.D. [email protected]

Thank You!!

@sboyle

Stephen Debruyn Director of Marketing

[email protected]

www.clarityconsultants.com

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