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Chapter 1. Introduction > Planning for Success - Pg. 4

Introduction 4 etc. As stated before, variability drives change, change drives instability, and instability drives breakage, which drives cost and downtime, resulting in customer dissatisfaction. Think about the different pieces of your operation; those with the least amount of variability are those that are most manageable both from a delivery and a financial perspective. Predictability Predictability of quality, delivery, and cost of service also has a direct effect on customer satisfaction. A perfect example of this is the fast food industry. How many times have you gone to your favorite fast food franchise expecting to get predictable quality, service, and price, regardless of the town in which you are. It is the same with any good or service: Customers expect predictability. Other factors and observations to consider: · You may be able to outsource specific functions or areas with the core competencies listed above, but what you cannot outsource is a common goal. The goals of any ISD organization should be to increase level of service and to reduce cost, both of which will increase customer satisfaction. These goals can conflict with those of an outsource partner whose main goal is to increase revenues. It must be treated as a partnership if success is to be achieved. · Outsourcing has an increase in "formality" associated with it that manifests itself in the form of "red tape." Therefore, if your business requirements are changing frequently, the ability for your outsource partner to respond with the same velocity may be hindered. The message that should be coming across is that outsourcing makes the most sense in an envi- ronment, business area, or set of services that is definable, stable, and measurable. If these factors are lacking, then your outsource partner will not be able to provide the timely delivery of quality and predictable services in a cost-effective manner. In addition, you can be assured that customer sat-