I am slightly alarmed at the proliferation of so-called DIY solutions for small businesses.A quick look at the internet sees people offering DIY solutions for
- accounting
- search engine optimisation
- promotional materials
- PR
- web design
- market research
- creating a brand
- ‘any marketing material’!!
- payroll
- health and safety
- employment law
- company formation
- business planning
- legal solutions
- IT networking
- ISO9000 and so on
I bang on about business owners being control freaks, never letting go... the main thing holding the business back is the owner/manager–director. There is no way that any person could deliver a half-decent result from trying to do almost any of these DIY solutions. You cannot do it yourself! You cannot be an expert in that many fields. And why would you want to?
You should be doing what you are best at. You should be employing the people who are best at function x to do function x. I would not want to look at a DIY manual to consider whether to perform my own heart surgery; I would not look at a DIY solution to figure out how to do my accounts. There are other people far better equipped to do these things.
Anyone who has seen the IKEA shelves I once attempted to put up will understand where I am coming from – reading instructions is not my strong point!
It feels like a no-brainer to outsource most of your non-core operations. Neither I nor my people have the time to be 100% bang up-to-date on payroll legislation and its application, the latest google algorithms, top tax techniques etc. That is why we employ/outsource experts to do the job.
The expert outsourcer can be local; they are an expert in their field, they bring years of their experience to your business but you only pay for the skill as and when you need it. No full-time Finance or HR Director, just an FD or HR Director when you really need one.
On the cost side this is incredibly effective; on the benefit side you get heavy-weight/blue-chip assistance for your less than blue chip business.
Here are a couple of examples of businesses I have recently met who are ‘doing what it says on the tin...’
James Benson – The FD Centre
Sue Tumelty – HR Dept
Peter Prater – QTAC Payroll Systems
Anthony Sherry – Chorus IT
Jason Flintner – Flint Design
(And of course I must add Paul Jobin - The Directors' Centre)
18 comments:
OK - apologies for my earlier outburst. This lot are not the typical marketing whores I was referring to.
Nice honest businesses. Real people. Believable. Free of BS.
Good. What a relief. Restores my faith.
Jim
The trick is to know when to outsource and when to bring a skill inhouse.
The tipping point is when you can buy the inhouse version for the same fee as the outsource or part-time alternative.
Next you need to make sure that the inhouse person is as up-to-speed as the outsource expert.
A lot of this is about understanding how to contract and define objectives and outcomes.
With the outsource person it is easier to sack them.
Finally you need some kind of priority list for what you want to come in-house earlier.
For us (web designers, 14 staff) the order list went
1) office manager/book-keeper
2) sales person #1
3) sales person #2
We use HR and FD and IT network and branding and mentoring services from outsourcers. They are part of the team by varying degrees. We will continue to outsouce till we are at least double our existing size.
You get what you pay for.
Read Tim Ferriss on the subject.
Jerry, Strathclyde
There is an article about supply chain (= outsourcing?) which features/mentions Robert in today's Director magazine.
A bit of a tease. Not everyone is a member of the IOD. Nort on the iod or director website.
Jim
Just seen the Director piece. Short and sweet. Isn't there a wine story you use?
Jim
What you need in an outsourced partner - is trust, someone who understands your business and has up to date skills and expertise...
Sense of humour helps on the days when things go wrong...
The full Director Magazine article can be seen at
http://www.directorscentre.com/DirectorNov09.pdf
I was one of three commentatators on the question
Robert
Do not outsource your core functions.
Andy
It seems that there are different outsource agents you might need.
- core buisness function: eg accountant
- secondary bus function: eg IT or brand
- core personal/board development: NED, business coach
- secondary: personal coach.
Morag
It is the small-minded small business blief in the one-size-fits-all DIY solutions that worry me.
Robert
Robert
The key message here is about what you should outsource.
Depending on the stage of your business then it will vary.
For businesses over 1m t/o which is what Robert and Director's Centre talk about then you need
- an FD on a rope (sometimes, not always but there and available in the background
- a 'best friend' for the MD (like the Directors Centre people)
- an HR 'function'
Without being too specific let me explain.
1 FD-type person. can't do without a commercially focused person in your key team who can do the numbers. Doesn't have to be an accountant but does have to be commercially minded and rooted in reality. Interesting to see FD Centre appearing here. Any formal relationship?
2 Being MD is lonely and one struggles to maintain direction, enthusiasm. You need someone on your side. Independent. Telling you how it is. What you can do. Starting to sound like a party political broadcast
3 HR function. 'In house' or 'out of house' you need an HR director on a rope and an HR Manager on a rope. Interesting to see HR Dept appearing here. Any formal relationship?
Finally one would imagine that there would be a Marketing Director already in place but if that is not the case then this would a number 4.
R
R (author)
Thanks for your comments.
There is no financial/formal connection between the FD Centre or HR Dept and The Directors' Centre. However I do know the people at both organisations and like what I see. I have recommended that clients talk to each company.
In 2010 I am speaking at an event being run by these two companies and some of their associates.
Robert
Thanks for the 'plug' (deliberate or otherwise). If you want to talk about The Directors' Centre consultancy services then Paul Jobin is your man 01225 851044
Surprised by the absence of content from
"James Benson – The FD Centre
Peter Prater – QTAC Payroll Systems
Anthony Sherry – Chorus IT
Jason Flintner – Flint Design"
What should we conclude? They don't know about the blog?
Robert
The key message here is about what you should outsource.
Depending on the stage of your business then it will vary.
For businesses over 1m t/o which is what Robert and Director's Centre talk about then you need
- an FD on a rope (sometimes, not always but there and available in the background
- a 'best friend' for the MD (like the Directors Centre people)
- an HR 'function'
Without being too specific let me explain.
1 FD-type person. can't do without a commercially focused person in your key team who can do the numbers. Doesn't have to be an accountant but does have to be commercially minded and rooted in reality. Interesting to see FD Centre appearing here. Any formal relationship?
2 Being MD is lonely and one struggles to maintain direction, enthusiasm. You need someone on your side. Independent. Telling you how it is. What you can do. Starting to sound like a party political broadcast
3 HR function. 'In house' or 'out of house' you need an HR director on a rope and an HR Manager on a rope. Interesting to see HR Dept appearing here. Any formal relationship?
Finally one would imagine that there would be a Marketing Director already in place but if that is not the case then this would a number 4.
R
R (author)
Thanks for your comments.
There is no financial/formal connection between the FD Centre or HR Dept and The Directors' Centre. However I do know the people at both organisations and like what I see. I have recommended that clients talk to each company.
In 2010 I am speaking at an event being run by these two companies and some of their associates.
Robert
Thanks for the 'plug' (deliberate or otherwise). If you want to talk about The Directors' Centre consultancy services then Paul Jobin is your man 01225 851044
Do not outsource your core functions.
Andy
What you need in an outsourced partner - is trust, someone who understands your business and has up to date skills and expertise...
Sense of humour helps on the days when things go wrong...
OK - apologies for my earlier outburst. This lot are not the typical marketing whores I was referring to.
Nice honest businesses. Real people. Believable. Free of BS.
Good. What a relief. Restores my faith.
Jim
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