of 3 - Center for Global Outsourcings
of 3 - Center for Global Outsourcings
of 3 - Center for Global Outsourcings
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Introduction<br />
Executive leadership & vision is the fundamental key to the success <strong>of</strong> any initiative, be it<br />
outsourcing or any other program, that is division wide or the enterprise wide. And <strong>of</strong><br />
course anything you do must deliver lower cost, better sales and in the end improve your<br />
competitiveness. Examples <strong>of</strong> such leadership and vision, involving outsourcing leading<br />
to the increased business competitiveness are the focus <strong>of</strong> this paper. Here the Visioning<br />
leading to the Business Solution & Realization will be discussed. Fundamental to this<br />
methodology is the leadership and continued sponsorship <strong>of</strong> the concerned executive.<br />
Emphasized is my deterministic methodology that calculates and puts <strong>for</strong>ward bottom<br />
lines. Not much is written in this paper on Leadership and vision as the literature is awash<br />
with this but without it success cannot be achieved.<br />
Leadership And Vision<br />
Executive leadership is essential to any program's success. The methodology that I used<br />
in my practice <strong>of</strong> Value Engineering has at its core a grand vision or a blurred vision <strong>of</strong> the<br />
CEO who could either articulate it himself or will hire some outside consultants to do so. It<br />
involves him in getting the Vision defined and detailed so that a successful execution can<br />
be done. If practiced fully it will create value <strong>for</strong> the enterprise. The strategy <strong>for</strong>mulation,<br />
or synchronization <strong>of</strong> it with the enterprise strategy, is based upon business goals and<br />
SWOT analysis. Based on the conclusions <strong>of</strong> SWOT analysis KPIs are constructed from<br />
which Business Strategies are developed. These in turn deliver a Business Solution.<br />
Details <strong>of</strong> this methodology are given elsewhere 1 . In these engagements it was found that<br />
if the leaders' skills and support was not available the entire ef<strong>for</strong>t will not pass through<br />
successful realization. And which CEO will not want his business to be more competitive.<br />
A previously published book 1 has a whole chapter on Vision to Competitiveness titled<br />
Strategy.<br />
While greater details on this can be found elsewhere 1 , given below are the usual goals<br />
and objectives some or many <strong>of</strong> which have become the part <strong>of</strong> the executive vision:<br />
• Prospect <strong>of</strong> higher pr<strong>of</strong>its and returns<br />
• Reduced risk through additional markets and customer groups<br />
• Extensive use <strong>of</strong> existing production capacities<br />
• Use and protection <strong>of</strong> existing raw material<br />
• Benefit from cost advantages<br />
• Outsourcing alternatives<br />
• Closeness to markets and customers<br />
• International linking alliances, coalitions, joint ventures<br />
• Favorable currency relations and advantages<br />
• From strategy to competitiveness<br />
• Procurement and use <strong>of</strong> new know-how<br />
• Avoidance <strong>of</strong> import restrictions<br />
• Use <strong>of</strong> state and international support measures<br />
• Use <strong>of</strong> support measures <strong>of</strong> host countries<br />
Value Chain<br />
Detailed value chains along with causal effects are available in Chapters 2 & 3 <strong>of</strong> my<br />
Wiley book, Technology Score Card 1 .<br />
If through the SWOT analysis it is evaluated and vetted by the executive in charge that<br />
Tenth Annual International Daejeon, South Korea P a g e | 26<br />
Smart Sourcing Conference June 28-29, 2012
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