What We’re Reading: “You Get What You Pay For” Edition

The Dutch, who know a thing or two about frugality, have a saying, “Goedkoop is duurkoop.” The English translation: “Buying cheap is buying expensive.” And nowhere is that adage more fitting than in outsourcing.

University of Tennessee researcher Kate Vitasek offers an in-depth look at how shortsighted cost-cutting and nine other behaviors can hurt companies in her new book, “Vested Outsourcing,” which was published earlier this month by Palgrave Macmillan.

For her study, Vitasek looked at outsourcing deals and identified the most common mistakes companies make when contracting. Among them: Micromanaging, lack of formal governance, metrics obsession, and, of course, cost-cutting as a quick-fix measure.

Cost-cutting, Vitasek writes, is the easiest to identify. Companies desperate to trim the bottom line take the cheapest offer. The result is a tradeoff in quality, service or both.

For more about the study, visit Vitasek’s blog, which features a wealth of articles. It makes for great snow day reading. And for previous posts published on this blog about the subject, see the following: Wasting Money is Bad for the Bottom Line, When Mistakes add up to Millions, and The Real Cost of Offshore Outsourcing.♦

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Learning Japanese, or Stopping Mistakes Before they are Made

Poka-yoke – I never had heard the word before, but I was delighted to discover it two weeks ago in a Harvard Business Review article written by Michael Schrage.

Poka-yoke is Japanese for “mistake-proofing.” Think of the “In Case of Fire Break Glass” boxes found in office buildings. Because they include a wee stick with which to break said glass, they would qualify as poka-yoke.

Best of all, your employees will experience minimal downtime and very little lost productivity.

In business, Schrage explains, poka-yoke is the “simplest, cheapest, and surest way to eliminate foreseeable process errors.” He urges managers to perform a poka-yoke audit of their own department.

“What are the persistently simple — and simply persistent — dumb mistakes we make that our technologies can help us catch and destroy?” he asks.

Here’s where I believe IT managers should start: the help desk.

Say your company is planning an Office 2007 migration, and you, as CIO, have decided that because of the current economic climate, assistance isn’t needed. After all, your reliance on internal help desk staff during previous Office upgrades didn’t turn out disastrously. [Read more...]

What’s in a Name?

Sometimes it’s hard to explain in just a few words what this company does. Of course we help people with their PCs — that’s how the company got its start in 1992. But over the past 18 years, we have expanded our offerings. We help with Macs, mobile devices, Tier 1 help desk, migrations, and much more.

“The Ribbon” almost became a profanity in 2009. It’s central to the Office redesign, and it has rendered even seasoned Office users lost and confused.

Are we “efficiency experts”? We think so. Are we “leisure enablers”? Yes, we are. Are we “ROI generators”? Precisely.

Here’s a breakdown:

1. Mobile Device Support

I, personally, cannot imagine a world without on-the-go access to e-mail, documents, maps and every other feature my mobile device affords me. And, I suspect, most corporate workers would agree.

And smart phones will only become more central to how we work. According to a 2009 study, mobile use for business will double from 2008 to 2011 and the variety of devices being used will increase. Problem is, IT departments will continue to be ill-equipped to handle the support needs. [Read more...]

Eating Down the Enterprise

If there’s one idea that characterized 2009, it is “doing more with less.” If I had access to LexisNexis, I’d tell you just how many times it’s been used in print, but, alas, I don’t. Let’s go with it anyway.

The recession has forced managers and the C-suite to scrutinize budgets, choose which projects to embrace and which to scrap, and decide how many employees to sack. It has left a bad taste in many mouths.

“Doing more with less”: trimming the fat; getting back to basics; losing the bells and whistles; re-featuring; making tolerable tradeoffs; dialing down; innovating; repurposing.

Here are some variations of “doing more with less”: trimming the fat; getting back to basics; losing the bells and whistles; re-featuring; making tolerable tradeoffs; dialing down; innovating; repurposing.

Usually, I consider buzzwords and catchphrases as an affront, or a ruse to get me to think I matter as a worker. Then I remembered a column I read on Washingtonpost.com earlier in the year, “Eating Down the Fridge,” written by Kim O’Donnel, who happens to be a good friend of a good friend.

The column is O’Donnel’s challenge to her readers to skip trips to the grocery store for a week, and instead use what’s already in the fridge and pantry. It’s an experiment in doing more with less. (O’Donnel’s effort was inspired by fellow foodie Steven Shaw, co-founder of the web site eGullet.org, who endured his own no-shopping-for-a-week challenge.)

After re-reading it, the idea of getting back to basics in business offends me less, and almost seems noble. [Read more...]