LO & Outsourcing/Future Org ( LO21187)

Patrick Delaney (pdelaney@SensibleInc.com)
Mon, 5 Apr 1999 17:14:56 -0500

Replying to LO21114 --

Steve,

You have selected an issue that:
1) is defining patterns of work and organizational structure for the
next century.

2) has key issues for Learning Organization readers:
a) the management of knowledge in organizations, and,
b) the knowledge & ways organizations choose to learn.

Your terminology is a bit different, but the core issues are the same.

You posed several good questions. To answer them, let9s start with how
many believe organizations will be structured in the years ahead.

Direct Employees comprise what Charles Handy, in "The Age of Unreason",
called the Core Team.

(
an unabashed Handy fan --- the man is a thinker!)

Handy defines the Core Team as those people who "own the organizational
knowledge which distinguish
This includes people who are essential to the organization: qualified
professionals, technicians and managers."

We view the Core Team as a tightly knit group of dedicated, focused
people. The Core Teams employees will have the very best skills, ingenuity
and ethics. The number of employees on the Core Team will vary, but will
probably trend downward. Selecting and attracting the best people is
already the latest corporate battle front. Losses of direct employees from
the Core Team should be highly unusual.

In our patterns of thinking, the Core Team is/should be the ultimate
learning/knowledge management organization.

Handy also describes external people resources (people who9s work
experience/portfolio enables them to work independently). We have adapted
a term - - Portfolio Workers - - to encompass and simplify a myriad of
confusing industry terms:

(Advisors, Agency workers, Business Commandos, Consultants, Contingent
Workers, Contractors, Contract Workers, Executive Temporaries, Flex
Workers, Freelancers, Guest Workers, Independent Contractors, Interim
Executives, Interns, Just-In-Time Professionals, Leased Executives,
Micro-enterprises, Not Full Time, Part-Timers, Subcontractors,
Temporaries, Temporary Executives, Turnaround Managers, and so on)

Portfolio Workers are applied by the Core Team to specific work projects
for a variety of reasons. (Examples: a specific task, a needed piece of
knowledge, repetitive execution of a task the Core Team chooses not to do
for itself, etc.) Today, Portfolio Workers are available across all
professional disciplines. Experience sets range from technical performers
to Board level contributors.

This pattern of work is becoming increasingly important. Blended teams of
Core Team and Portfolio Workers are rapidly becoming the preferred (and
often, the most practical) method of project or task accomplishment. It
is the role of the Core Team to manage the movement of Portfolio Workers
in AND OUT of the organization.

Given this perspective, let9s go back to your questions:

> In the context of a trend toward learning organization (LO) environments,
> does
>outsource have an impact on LO success?

You bet! In many cases, one objective of the LO/Core Team may be to stay
small, to remain nimble. The "outsource" to Portfolio Workers is often key
to the Core Team9s successes. The Portfolio Workers can enable the Core
Team to move more quickly and directly to objectives than if the Core Team
tried to do it all by themselves.

>as a given organization move more toward and then implements outsourcing
>practices,
>are some of these advantages countered by such influences as workplace
>stress? (That is: "Is my job to be cut?" "Am I doing my best?")

Given a thoughtful build of a Core Team organization, it would be highly
unusual, in our thinking, for a Core Team employee to encounter "workplace
stress". Job security should be exceptionally high within the Core Team.
Self-motivated employees, who constantly improve their skills, will be the
norm.

>"Is the work load going to be shifted to me because the outsource contract
>must be
>successful?"

The burden of making an outsourced task successful lies on the Portfolio
Worker.
But it is up to the Core Team to make sure they are getting that for
which they paid. Today, senior managers are seeking, at increasingly
lower organizational levels, proven experience in managing work
accomplished outside the organization.

Steve, in the interest of brevity, I9ve kept the above as simple as
possible. The simple examples and applications of Portfolio Workers cited
above are but one from an extensive list of advantages/reasons for using
Portfolio Workers.

You will find much more information on these subjects at our web home:
www.SensibleInc.com . May I suggest you review these underscored topics
during your visit:

"Portfolio Workers" (includes market trends, rationale, etc.)
"Options" (available to organizations using Portfolio Workers)
"Frequent Strategic and Tactical Uses of Portfolio Workers"

Lastly, Tom Peter9s book "Liberation Management" contained many examples
of this pattern of work in practice. It is a great read. Recommend it
highly. You can find reference information (ISBN, etc.) at our web home.

Hope it helps your effort! After you9ve done some reading, let me know if
you have a question. Would enjoy the chance to read your finished product,
if you are willing to share.

Sincerely,

Patrick Delaney
e-mail: pDelaney@SensibleInc.com

Sensible Solutions, inc.
...an executive search consultancy
239 W. Coolidge Ave.
Barrington, IL 60010

847.382.0070

www.SensibleInc.com

-- 

Patrick Delaney <pdelaney@SensibleInc.com>

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