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.Don’t Forget the Details!
by Suzanne Mark
Owner - MARK of Excellence
MARK of Excellence
We’ve been doing it for years. We’ve called it many things. We’ve loved and we’ve hated it. We’ve found it cost effective and we’ve discovered it wasteful. What is it?
OUTSOURCING!
Well, actually that’s not even the latest faddish buzz word for it - BPO, or “business process outsourcing” is today’s mantra. However, we’ve also called those who offer such services- suppliers, subcontractors, freelancers, independent contractors, consultants, and third party service providers. The terms, conditions and work results might be different but the common bond is that most businesses today sooner or later will use outsourcing to get some or all of the job done!
Probably one of the most highly publicized forms of outsourcing to hit national and international news recently is the call center and customer service programs being developed in India and Sri Lanka by large corp-orations in the travel industry. With cheap labor in the Asian community, it may make sense for large scale operations to be based there. However, in the arena of public opinion it may be perceived as politically incorrect. Businesses have to pick their battles. In any event, a company considering international outsourcing should not only seek out guidance from professionals specializing in international law, but carefully study the cultural, economic and social situations that they may be operating within. It’s not just business far away, it’s business in another world!
However, most outsourcing at the resort level is contract labor in its simplest form. Some of the most familiar for resorts may be accounting, payroll, legal services, deep cleaning such as carpeting, as well as linen service for guest rooms, dining, and beach or fitness facilities. Specialty work such as renovations, plumbing, heating, electrical or mechanical may be contracted when work becomes more complicated than existing staff can manage.
One of the first questions any Resort owner or operator needs to ask before considering outsourcing is: “Do I have the right personnel, with the right KSAs (knowledge, skills and abilities), and most importantly are they doing the right jobs?” It’s not always easier and cheaper to do some business processes in house. It may not just be the labor involved, but also the facilities and equipment needed to support certain business processes. Some of the services that you may want to consider outsourcing are laundry service, landscaping and grounds maintenance, and pool maintenance.
The Devil is in the detail
Beginning with the end in mind is probably the best rule to follow when outsourcing. The resort is not hiring an employee, they are contracting for very specific functions or business processes to be performed. Start by developing an RFP (request for proposal). A good rule of thumb is by getting at least three bids from the RFP. Many resorts have found this process alone very educational. By looking at multiple bids, different aspects of the job may become clear and specific contract terms can be revised.
Secondly, most outsourcing goes awry because of initial contracts not being specific. Most importantly, service levels and standards should be clearly defined. For instance, in linen service, the sheets should of course be clean and provided on time, but they must also satisfy the customer and be clean-looking, clean- smelling, soft and free of rips and holes. Never leave anything to ‘assumption.’ The devil IS in the detail; put it in the contract. The customer doesn’t care who cleaned the sheets, they care that they are comfortable and the resort will get the complaint if the sheets aren’t right, not the laundry service.
Any outsourcing function is still a reflection of the resort, not the outside contractor. The customer doesn’t want to hear, know or care what the internal workings of the resort are. They just want good service regardless of whether it was performed in house or outsourced.
Contract details should reflect the needs of the resort, not the contractor. “The prison wasn’t built for the prisoners.” While it might be convenient for the pool maintenance firm to come at 12 noon, it’s at the peak time for the guests.
When taking on new services, caution should err for a shorter time limit with the possibility of renewal. Technology and management options are changing so fast; a resort doesn’t want to be bound by a contract that no longer works for them. The most outstanding example would be the Internet. Today one of the most popular outsourcing functions is wifi. No one knows what the next big breakthrough will be, but no one wants to admit that they wired the resort guest rooms for high speed only to learn about wifi before they finished paying the bill for high speed.
Another devilish detail to remember is that of licensing and credentialing. We’re used to accountants having CPAs and lawyers being a member of the bar, but many other outsourced work has governmental or industry licensing and credentialing. It is of utmost importance that the resort has documentation that the outsourcing work is being done by legally or professionally qualified parties. While required licenses and credentials may change depending on the local, regional or national regulations, a copy of any required or recommended credentials should be retained with signed contracts or the contract should at least include that the work is being performed by credentialed parties. Most licensing and credentialing has time limits after which updating, re-registering, testing or additional education is required for renewal, so make sure to check the certification dates as well!
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