Abstract

Business process outsourcing (BPO) allows owners and managers of small and medium enterprises to focus on the core competencies that afford them a competitive advantage. It provides them with resources and expertise they need to get necessary non-core functions done, while allowing them to focus on what they do best. There are risks that come with outsourcing that cannot be overlooked, but with proper due diligence and preparation they can be minimized. Although almost any function can be outsourced, each enterprise needs to determine which functions are best suited for them based on their current situation and their needs.

Exaggeration or outright lie?

On a regular basis you will hear about politicians who exaggerate or even lie about their background and experience. Various years ago the President of a local college in Reading was caught lying on his resume which he used to apply for the job. A few years ago there was an article in the newspaper in Reading of a man who applied for a position with the county and the HR department found out he had lied on his application. In some cases, some of the people are spared their jobs if the lie is found after the fact, yet others are let go immediately. Where these considered lies or merely an exaggeration of the truth? This is called embellishment.

A Knowledge@Wharton article states that "embellishment is part of human nature, experts say, and almost everyone is guilty of it of at one time or another." The article continues to say that "left unchecked, however, exaggerations that seemed innocuous at first could result in serious, potentially career-ending consequences. It also points out that even though it may not end your career, if "you are caught in deception, even if it's a common deception, people won't trust you. And once the bond of trust is lost, it's terribly hard to recover."

Today more than ever, with all of the technology and immediate access to information, it's harder to cover exaggerations or lies. Human resource professional have more access to more information than even before to check out employees backgrounds and make sure the information they providing is true. Does your company verify the information on resumes or applications? Have you had any situations were you have had to deal with misrepresented information from and applicant? Don't worry, I am not going to ask if you misrepresented information to get your job!

I suggest you read the full article, it is very interesting.

Legislative Action

Not until recently was I so aware of the impact that legislative actions had on business. I have become more aware because of the type of work I do. The Chamber sees advocacy for businesses as an important part of what it does. The Chamber even has an endorsement committee task force that interviews candidates running for office. But the reality is that most people, including business owners, are not aware of the impact that legislative actions can have on their business, and therefore on their employees and the way they run their day to day operations.

Take for example Card Check legislation. Under Card Check legislation, should it have passed, it would have made it easier for unions to organize. Another aspect of it was that if the union and the business were not able to agree on a contract, a government arbitrator could set whatever he felt the contract should be, no matter how it would negatively impact the business. Although it has not passed, it is not completely dead yet.

State and Federal taxes also have a direct impact on the bottom line of businesses. Tax increases could have a negative impact on the business, and tax incentives to help create more jobs could have a positive impact on the business.

There are many other things, such as Cap and Trade, foreign currency policies, trade agreements, initiatives on strengthening the workforce, and many other, at both the state and federal that will have a direct impact on your business.

The Greater Reading Chamber has a section on our website, GreaterReadingVoice.com, that deals with legislative issues that affect business. You can also find more information there about health care reform and the potential impact it may have on businesses. Does anyone at your business deal with government policy or advocacy?

Virtual Assistants

Keeping in line with the topic of my research paper, which is business process outsourcing for SMEs, I have been reading about the use of virtual assistants. There is a member at the Chamber who is a virtual assistant and I never really knew what she did. So one day recently I decided to ask her. She actually does many duties a regular assistant does, and more. She handles administrative tasks such as handling calendars and setting appointments; setting up meetings and working out the logistics; performs one time or short term projects for clients; and she even makes sure the client had someone to pick them up when they arrive at the airport.

The concept of virtual assistants, although it is not new, has grow recently. With new technologies and the growth of the internet, many more functions are now being outsourced. The virtual assistants are usually used by smaller companies that may not need a full time assistant, or may be able to pay for one. They are also used for special projects and by companies which are seasonal and may only require assistance part of the year, or may require more support part of the year.

She has the opportunity to work out of her house, attend networking events on behalf of her clients, and has the flexibility to work out of any part of the world. Dealing with diverse clients has allowed her the opportunity to grow professionally and learn new things.

Business process outsourcing had advantages for both the organization using the outsourcing services, and to those providing the services as well. Microsoft's Small Business Center has an interesting article on tips for outsourcing for small businesses.

Are you ready for the changing employement situation?

The reality today is that there is a high unemployment rate. There are many people out there looking for jobs. Speaking recently with managers and business owners I have found two interesting, yet opposing situations. On the one hand, I have spoke with many managers who have found that they get an overwhelming amount of applications for positions. These are usually positions that do not require specific education or much experience. For example, I was speaking to the HR Manager of a large store and she told she had 300 applications for 1 cashier position. A hotel that recently opened had over 600 applications for about 20 positions. A new restaurant had over 1200 applications for about 60 positions. In all cases they had people with years of experience and degrees applying for jobs that required little, if any, experience and only a high school diploma in many cases. These were people that had lost their jobs due to the economy and wanted to get back into the workforce. On the other hand, I have spoken with other managers that find it hard to hire even in these times. They are usually in industries that require a certain amount of technical training and/or experience to do the job. They have found that many of the people that worked in these types of jobs and were now laid off were more comfortable at home collecting unemployment. They are waiting for unemployment compensation to run out to start looking for work. The question, will there be work when they start looking? And if there is not, what will they do?

The situation of the economy and all of these lay offs have had an effect on the way businesses are run here in the US and around the world. I recently read an article in the World Trade Center of Central PA Business Intelligence Brief newsletter titled "Future of Employment Changing Drastically." The article say that "there are somewhere 15 million and 30 million people who are currently unemployed or underemployed." Yet "at the same time there has been a study that suggests that there will be a major employee shortage by 2018 as the economy will be demanding close to 22 million educated workers when the education system is only turning out about 19 million". It goes on to mention the importance of education and training in meeting these needs. It will be more important than ever to have an education to be successful in the workplace.

The article has a lot of very interesting facts on the way the workforce is going to change and who is going to able to benefit from it. You can see the article on the June 16 edition of the Business Intelligence Brief.

What has been your experience in trying to hire recently? Do you have many applicants, or are you struggling to find someone? Do you think it has to do with the type of position and the requirements? Does education play a factor?

As a business owner or manager, are you spending your time on core functions that will help your business grow and accomplish its mission, or do you spend a lot of your time on the daily tasks of keeping your business going?

I was recently reading a chamber trade publication and I came across an article that I found interesting and thought would be beneficial. I would like to highlight some of the points the author brought. The article was written by Candace LaForge and titled “Emerging Trends: Outsourcing Operation Functions”

Candace says “It’s easy for a business to get caught up in the details of working in their business and forget the importance of working strategically on their mission. Try this test: Keep a daily activity log of staff time for a few weeks so you can determine the percentage of time spent on core functions versus non-core functions. You might be surprised."

With limited budgets, many companies are looking at business process outsourcing to help them with non-core business functions to have their employees focus on the core functions. Business process outsourcing is also viable if staff is lacking certain expertise or is already stretched.

How do you start the process of outsourcing?
Define your core competencies- these represent the reason of your business
Define your non-core competencies- necessary to run the business, but not what your business is about
Identify areas that are hurting, require a more sophisticated skill set or a higher level of out-put, or are non-core functions that take up large amounts of time
Start by getting your feet wet by outsourcing something small that is a great area of need

Some of the benefits of outsourcing
Ability to concentrate on core functions
Reduced costs
Higher quality
Improved internal efficiencies
Lower ongoing investment required in internal infrastructure
Increased flexibility to meet changing business conditions
Increased commitment and energy in non-core areas

Types of outsourced functions:
Payroll, bookkeeping and accounting
Special event planning
Communications- writing, graphic design, media relations
Marketing
IT support
Website development and maintenance
Database maintenance
Mailing services

When deciding on outsourcing, please keep in mind that everyone’s need is different and outsourcing works best with a plan so everyone knows what is expected of them.

I am going to focus my research paper on the benfits and drawbacks of business process outsourcing. Do you have any thoughts? Has it worked in your organization?

Diversity in the Workforce

Studies show that there is an increasing growth of cultural diversity in the workforce. As mangers we need to be able to deal with this diversity. Dealing with culturally diverse people does bring benefits to any organization, but it can also bring its own set of issues. The more knowledgeable we are, the more we will be able to use diversity for the benefit of all.

There are some things I have learned over the years about managing culturally diverse employees:

Expect the same. The way you deal as a manager with each one may differ, but the expectations for job performance must be same as everyone else. You should not expect any less from them, nor should they have to work any harder than anyone else either to get the same recognition and opportunity for growth.

Don’t pigeon hole them. Sometimes companies put a bilingual person in a certain position and don’t allow them to grow because they cannot get anyone to replace them. Sooner or later they will leave anyway if this is the case.

Don’t make them the turtle on the fence post. Don’t put someone in a position just as a token or to meet a quota. Both the employee and the coworkers will notice this and resent it. (Turtles cannot climb fence posts, so if they are there it is because someone put them there, not because they made it themselves.)

Is everything okay? If you are not getting feedback or suggestions from diverse employees, do not assume they are happy or everything is okay. If the employee does not feel comfortable expressing him or herself in English, they would rather not say anything. Also, many cultures frown upon employees going to their superiors with issues.

Communication issues. If an employee is not fluent in English it does not mean that he or she cannot perform their job properly. If they are not performing properly it may mean that there was a break down in communication somewhere. Even though they are noting their head yes at everything you are saying, it does NOT mean they are understanding you. To many of them it is embarrassing or uncomfortable to admit that they do not understand for fear of being looked down on or loosing their job.

Don’t assume. Ask questions and learn about their norms, values and expectations, but also teach them about your norms, values and expectations.

Being fully bilingual and bicultural, I have not had to go through some of the things other immigrants have had to. But when I deal with diverse people I try to imagine myself moving, to say Japan, and having to restart my life there. Would I be able to learn their language easily? Would I be able to assimilate their culture? Would I know what all their values, norms and expectations are to be able to fit in completely? Would I be able to look like them and act like them? If I were not able to communicate properly at my place of employment, would it mean I was not a good employee? If my values were different from my supervisors and coworkers, would it mean I was a bad person or employee?

There is a great tool to help organizations with diverse populations. Ecotonos is "a unique simulation for working across the cultural divide." It is fun and non-threatening.

The reality is that dealing with any group of people can bring its own set of issues because in one way or the other, we are all diverse. Diversity can range from cultural differences to differences in age, gender, sexual orientation, religion, title, marital status, educational attainment, income, socio-economic status, and so forth, and all of these impact our norms, values, and expectations. Even where you are from in the United States impacts your values, norms, and expectations. Therefore, if you are Pennsylvania Dutch, your values, norms, and expectations will be completely different from those of someone who was born and raised in say, Los Angeles, CA. The question is, who determines which values, norms, and expectations are right, or better? Or is there really a right and wrong, or better, or just a different?