Creating Resilience

The change management journey: Destination optimization

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What does successful change management look like when outsourcing your real estate and facilities operations? Experienced outsourcing providers will work in close partnership with you to help bring your people onside, address challenges, and maintain momentum after the transition.

Once an organization has decided to outsource its real estate portfolio, they are often eager to experience the benefits already being enjoyed by many of their peers: cost reductions, process improvements, technology advantages, access to talent, increased employee satisfaction, and more. But change is a journey, not an immediate destination. For the outsourcing journey to be successful and the ultimate destination reached, the process of change needs to be carefully managed from end to end. Good change management requires partnership, meticulous planning, organization, and the recognition that there is no ‘one-size-fits-all’ solution.

We look at what good change management looks like during the three key phases of this journey:

  • Pre-transition
  • Transition
  • Account support

Pre-transition

Before a transition is underway, setting the stage for change is key. Effective change management includes developing and communicating the change vision, creating a change network, and ensuring key stakeholders are engaged

Establish joint understanding of goals and objectives

Transitioning to an outsourced model often involves navigating unfamiliar territory. Ensuring a smooth transition starts with a strong joint understanding of goals and objectives from both the client and outsourcing partner. It’s critical that the client fully understands what they are seeking to achieve by outsourcing their facilities, makes sure they retain a proficient level of knowledge about the services being outsourced, and clearly communicates their goals to their outsourcing partners. A lack of alignment at this stage can lead to complications later and exacerbate challenges over time.

Aligning on the strategic vision

Clients that can effectively communicate their goals enable outsourcing providers to develop a clear strategy for meeting them. Both parties need to agree on this approach and if modifications are needed, these must be discussed at an early stage and jointly approved.

Create a change network

In many cases, the push to outsource real estate services is led by procurement. This can lead to apprehension among site leaders who may feel that their procurement colleagues are intervening in their operations. Organizations need to proactively address this challenge by involving site leaders early in the process, gaining their buy-in, and aligning on goals that enable site leaders to be change champions. Obtaining executive buy-in and involvement from the outset is vital for any outsourcing process and ensures that the benefits of an outsourced model are recognized and promoted throughout the organization.

Align goals and foster a trusted partnership with plant managers.

Transition

Implementing real change starts when the transition kicks off. Here, good change management is about articulating the ‘why’ and sharing the benefits with key stakeholders; maintaining a strong focus on engagement, knowledge sharing, and learning; and leveraging a highly structured process and approach. Powerful data analytics, a dedicated core team, subject matter experts, and effective risk management should all be offered by outsourcing partners.

Determining an organization’s readiness

Before moving into transition, experienced outsourcing partners will want to ensure that the client fully understands the benefits of outsourcing and gauge the organization’s cultural willingness to embrace change. Conducting readiness assessments can provide insight into an organization’s appetite for change. Where the results of a readiness assessment suggest that the client is not yet ready to transition, providers can help them prepare through workshops and targeted communications that showcase the benefits and value that will be unlocked through the partnership.

Gathering accurate data

Collecting accurate, holistic data is critical for a successful transition. Many organizations will assume the data in their databases is complete and verified, but that isn’t always the case. Discovering incomplete or inaccurate data can be costly and time-consuming, but having up-to-date information about people, sites, vendors, and more will create greater transparency across the portfolio. An experienced outsourcing partner will work with the client to fill in data gaps through an extensive due diligence process, creating a list of all the HR and asset information needed before the transition can begin. Companies that work to achieve a holistic view of their portfolio with accurate, consistent data can better support critical decision-making and overall business success.

The data is so important. Begin with the big needle movers.

Mitigating risks

When outsourcing for the first time, clients are often worried about disruption to service delivery, the ability to control cost and quality, the integration of technology solutions, and onboarding of employees with the new service provider. Clients should expect outsourcing partners to have effective strategies in place to mitigate these risks and help smooth the bumps in the outsourcing journey. For example, experienced providers will have industry-leading training and formalized career paths in place to nurture talent, motivate people to succeed, and encourage them to stay for the long term.

Maintaining momentum with ongoing support

Post-transition is about sustaining the change. Here, clients should expect their outsourcing provider to develop leadership action plans, rewards and recognition programs, communications plans, and training that reinforce both messages and the behaviors that need to change. Experienced outsourcing partners will provide clients with comprehensive materials including ongoing training and goal alignment to help them stay on track and measure their progress.

Organizations that receive this level of in-depth support from their provider can look forward to a successful outsourced future with a partner who can not only manage their day-to-day but build a clear operational future, enabling in-house talent to generate value and drive continuous business improvement and innovation.

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