What are the key elements of effective performance management for an outsourcer?
AM: Clear communication in terms of service levels and metrics. If you don’t have criteria associated with metrics, then you don’t have a good contract or service-level agreement. You need to set some type of punishment for failure to meet goals. SSON: What are the basic tools for process improvement? AM: The basic tools for process improvement are: Activity-Based Management, Lean and Six Sigma from a cost, quality, and time perspective. Although you can use all three as a combined baseline when you are looking at any process, system or analysis, you can evaluate cost from an ABM point of view. Similarly, cycle-time can be assessed from a Lean perspective, and quality from a Six Sigma standpoint. SSON: Where do you begin the steps for process improvement? AM: You can begin process improvement anywhere in the SS and outsourcing framework to try and achieve scale. It doesn’t matter what functional area or process you are going to use, but what you are actually going to evaluate. Typicall
