Media companies centralize and outsource to survive

For instance, an airline can be certain that all its engines will always be available and be serviced only according to a predetermined schedule, which will boost fleet reliability and aircraft utilization.

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Sometimes, it plays out for ill, as it did when the Smoot-Hawley tariff on imported goods exacerbated the Great Depression. That means fewer companies in Spain, primarily are looking to outsource services offshore, though the supply of poor Spanish-speaking countries in Meso and South America able to provide the services is plentiful.

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The negative aspect that management is concerned about is the redundancy in management and support personnel, as well as in capital-support equipment. This two-hour window gives the company the opportunity to assign the right kind of adjuster given the specifics of the case, so that a junior adjuster is not confronted with a complex accident beyond his level of expertise. As painful as it truly is for people who struggle to find work in a restructuring economy, the unemployment situation will eventually be taken care of by baby boomer retirements and job creation. Financial data dominate the discourse in the modern organization, although operational performance is the driver of financial results. Many senior managers will be slow to relearn how their industries work and will find themselves sidelined. Not surprisingly, it was able to strengthen its market position as a result. As these forces combine to sweep across the service sector, executives of all stripes must start thinking about arming and defending themselves, just as their manufacturing cousins did a generation ago. Most important, these three groups can and should overlap; flexibility and constant communication among them are critical. Typically, these will be specialists in critical areas: research, strategy, design, social media, SEO, writing and so on. When MetLife, for instance, was implementing a new process for installing coverage of a new customer, it did so in two releases. Time, cost, and customer satisfaction—the dimensions of performance shaped by operations—get major boosts from operational innovation. Companies should first decide what they want to own before thinking about partnerships; otherwise, they will end up picking the wrong partners. All these processes are sewn together on the back end. Yet senior managers rarely perceive operational innovation as an important endeavor, nor do they enthusiastically embrace it when others present it to them. Prompting customers to input the correct information greatly reduces work for IndyMac and avoids multiple iterations of the application.

It is important to note that with the decentralized structure, the higher management also is decentralized. Who loses? They should gather helpful hints from their customers, who are clamoring for greater choice, more control, lower cost, higher touch, and higher-quality service than they are currently getting.

Fortunately, all of these barriers can be overcome. This alternative method builds on an idea that is popular in software product development, an idea variously known as iterative, evolutionary, or spiral development. To keep everything running smoothly, you need an account person or team that handles ongoing communications and manages your engagement.


They expect transparency in their professional services providers. To address this challenge, the leadership team of the program and process must be very strong and have best-in-class performance measures in place so everyone can easily see even the most subtle changes in performance.

Designing operations entails making choices in seven areas. Who will decide pricing?

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Will You Survive the Services Revolution?