How it works

Increasingly, leading organizations are recognizing that the resources needed to create new, innovative, and strategic value exist outside of the organization. This is particularly true in complex, uncertain environments, where short-term support is desired and/or the needed capabilities lie outside the company’s core and strategically differentiating competencies. Thus, while facilitating collaboration amongst internal employees and teams is critical to maintaining flexibility and agility, the organization may also benefit from fostering collaboration with external organizations and individuals. As a result, formal outsourcing of selected capabilities and processes can serve as a cost-effective augmentation of internal resources and organization design.

looks_oneIdentify what can be internal vs. external to the organization

An important first step in developing collaborative relationships with external parties is identifying which activities should be completed using internal resources and which would benefit from external resources.