OSTKonline, OSTK, outsourcing toolkit

Enabler Tool


Workforce development and change management

In this Enabler Tool, you will learn:

  • What workforce development is for outsourcing
  • About the Human Resources for Supply Chain Management Theory of Change
  • Recommended tools and key performance indicators for the four human resources pathways

In healthcare organisations, the human factor is the determinant of performance and change processes. The success of outsourcing is associated with a thoroughly planned and implemented strategy and with the people involved in planning and implementation. Thus, people are enabler resources that contribute to the success of outsourcing initiatives.

The human elements to consider are:

  • organisational style and structure (a people-centred process, with involved, motivated and accountable teams and leader empowerment, and a flat structure focused on processes, not hierarchies);
  • staff selection (based on management and leadership skills, and giving clear and individual performance targets); and
  • training (solving problems and other individual continuous development programs).

People are a critical element to outsourcing success and thus should be considered throughout all four Process Steps. For each Step, we have provided the key considerations for workforce development, categorised using the four pathways of the People that Deliver Building Human Resources for Supply Chain Management Theory of Change:

  • Staffing
  • Skills
  • Working Conditions
  • Motivation

The purpose of the People Tool is to provide a guide in helping the build human resources and organisational structures that manage a successful outsourced relationship. It is worth noting that the technical and managerial competencies required to manage an outsourced contractor can differ from those needed for an in-house approach.

The People Tool will guide you through:

Staffing considerations and tools

Skills considerations and tools

Working Conditions considerations and tools

Motivation considerations and tools

The People Tool will help you:

  • Understand what the staffing needs are
  • Identify what skills are required to manage the outsourced activity successfully
  • Determine whether the appropriate legal, financial and performance management frameworks are in place
  • Understand the government standards for workforce safety and the working environment
  • Decide how you will measure success and implement feedback mechanisms

While using the People Tool, you will:

  • Analyse staffing structure and needs
  • Engage with other departments within the public sector that need to be involved in the outsourcing process
  • Identify skills gaps, core and non-core competencies for both the public sector and the contractor
  • Require government policies and approval authority
  • Consider the required budget for workforce assessment, recruitment of new staff, and training
  • Need data on current workforce performance

Team and Role Requirements:

  • Communication and involvement of staff throughout the process are critical for success.

After using the People tool, you will:

  • Be able to fill Management roles with the right skills and competencies to manage the contractor
  • Have a revised organisational chart with clear roles and lines of reporting authority
  • Possess an implementation framework agreed upon by all parties, which includes performance management, incentives and penalties, quality assurance measurement, and the transition plan