Today, more and more often, small and medium-sized businesses outsource some of the work, it can be cleaning, accounting, searching and hiring the necessary candidate or implementing work for the customer, which it is more profitable for companies to outsource than to perform on their own. In general, there are many reasons, sometimes entire business processes are outsourced – for example, sales.
Most often, in such cases, we are talking about fairly simple and understandable processes that do not require highly qualified specialists. This really reduces costs and enables companies to increase their turnover. However, this type of outsourced work is more like “pedaling harder and faster” or “buying 2 bikes instead of one” instead of getting into a car and moving forward at a completely different pace.
Why does this type of outsourcing not bring quality growth? The answer lies on the surface – because the “head” of the company does not change, and now we are not talking about the director (more precisely, not only about the director), but about the management of the company. Elementary things it would seem? – certainly!
However, it was these people who built the company and led to the level of development that we have now. It is not possible or necessary to change them, and this is absolutely correct, the value of the company in its team is in people.
Of course, you can take a risk and eventually replace the entire management team, but this risk is sometimes too high. And then the company’s strategy turns into “professional growth of employees”: trainings, books, trainings and other THEORY which in the end gives a good result if 10% of the investment. Here I mean the knowledge that managers subsequently put into practice and introduce into the company, making it more efficient, with 10% being the most optimistic result. As a result, we get growth on a difficult, expensive path, filled with a series of mistakes and a search of tools for management … And then, tired of the long journey, the company goes “for the bank” and accepts a super-expensive, “efficient, efficient” and popular in its circles “star” ” top manager! How does this story end? – yes, it happens that this story ends in success and the “star” manager really gives an excellent result, but this is also not the most frequent case, such stories happen more often:
The star manager turned out to be not so stellar, but prosaic and could not radically change anything, the team does not understand what is happening at all and why someone is paid such a huge pile of money (yes, the information will certainly leak out), and why are they paid so little? Well, the typical consequences of this situation, demands to increase the salary, turnover, discontent, and so on…
The star manager turned out to be active and cool, the team cannot withstand his pressure, he actively changes the team – layoffs, adaptation of new employees, training, building new systems – respectively, a decrease in the company’s current turnover – all this devours such a part of the company’s money that it barely stays afloat, if it works out, lucky.
The star manager came, worked a little, realized that this company was not at all his level and not something that he was interested in, received a new offer and left the company after a couple of months – along the way, taking with him a couple of the best employees and leaving behind a misunderstanding of the rest of the team.
And there are many more similar stories, share yours in the comments, it will be interesting to read and discuss them.
And in the end, for a small company in the active stage of growth, a good top manager is just expensive, yes – it’s expensive to give 350-450 thousand a month for one employee, even if he is a really great top manager.
And at this moment we return to the topic of outsourcing, is it possible to take a top manager for outsourcing? Does it make sense? Why do it? Will it benefit? How does it even work?
My answer is yes, you can and should outsource the top, and this is a great practice because:
Top on outsourcing, in fact, the hands of your “native” manager do the work of the top
Gives ready-made suitable tools and helps to implement them again by the hands of the company manager, which significantly reduces the resistance of the team, makes the implementation fast and gives a quick result
This is much cheaper than holding a full-time top (one top consultation usually costs 15-20 thousand, most often one consultation per week is enough, which is 60-80 thousand per month)
Elimination of all risks associated with the arrival of a new top
The knowledge of the top (and practically) on outsourcing remains in the head of the company manager and there is no bass factor (this is a measure of the concentration of information among individual project members; the factor means the number of project participants, after the loss of which, the project cannot be completed by the remaining participants)
The top does not have access to ordinary employees and will not steal valuable personnel
The top outsourcer has already seen dozens of companies and has unique knowledge and experience in solving most of the problems that the organization has, and quickly and painlessly.
You can talk for a long time about the benefits of outsourcing top managers, but all this, again, if you choose the right magic person)
We will discuss how to do this and where to look for it in the following articles) And if the operating system or departments already “hurt” a lot – ask questions here or in private messages, we will discuss together!