Over the last few years, my work with corporate training executives has taught me that when selecting a training partner, the most critical factor they are concerned with is whether the supplier has the ability to align to their ongoing needs. Can they scale with our company's growth? Do they understand my business? Are they incented to do the work I need them to do?
Our research at Training Industry, Inc. shows that when entering into a new agreement, almost three out of four (74%) training executives believe they are strongly aligned with their training outsourcing partner. But after one year, only 36% believe they are still aligned (Joint study with General Physics entitled, "Best Practices in Working with Learning Services Providers").
So what do we mean by alignment? Webster’s Dictionary defines it as ‘…adjust(ing) to produce a proper relationship.’ Translated into training terms, I believe it means that the supplier has the capabilities to align, or adjust to the clients changing needs. For a supplier to be able to adjust, don't you think they must have the core capabilities in the first place. My belief is you don't want them learning on the job.
My experience has found that many outsourcing deals are doomed for failure before they ever begin. Why? Because the supplier selected doesn’t have the capabilities to adjust to the buyer’s needs. Most all suppliers tout themselves as having the ability to do almost anything - and we all know that’s not the case.
The bottom line is this; choosing the wrong supplier increases your risk of success and with it the potential cost of failure. Trying to force fit the wrong supplier into what you want them to be can be an expensive proposition. But time and time again, I see the wrong supplier selected. Now i know everyone wants to choose the right supplier. But many fail in their execution.
So how do we prevent it? My advice - follow a simple principle when selecting a supplier. I call it the Principle of Alignment.
The Principle states that a “Suppliers performance is maximized when the supplier’s capability of services is properly aligned with the needs of the customer’s business. The probability of success increases and the coefficient of risk decreases when the supplier’s ability to perform matches the complexity of the engagement. The higher the complexity (or sophistication) of the engagement, the greater the risk and associated cost of failure (risk); the lower the complexity of the engagement, the lower the potential cost of failure (risk).”
Alignment is not a perfect science. There are conditions that are more efficient, and others that are inefficient. Efficient alignment occurs when the supplier’s capabilities are in close alignment to the capability requirements of the buyer. This allows for an efficient and cost effective adjustment to the needs of the client.
Inefficient alignment occurs when the supplier’s capabilities are not aligned to the needs of the business. The further the misalignment, the greater the risk. Beginning the relationship misaligned increases your probability for failure, or for an inefficient relationship.
So how do you optimize alignment? First, follow the 7 Stage Process for Training Outsourcing (see 7 Stages of Training Outsourcing ). This process will help you in getting to know your potential suppliers before making a decision. In the first stage of the process, you should conduct an organizational assessment and determine the type of engagement you require; comprehensive outsourcing, selective outsourcing, niche service or product outsourcing, or contracting or single project.
The Training Supplier Stratification Model will help you with this. Then when you choose the supplier(s) to submit RFP’s to, and you choose the supplier(s) to contract with, you will increase your probability of success.
If you would like a copy of the Principle of Alignment slide, please feel free to send me an email at dharward@trainingindustry.com. And as always, please get in touch if you have any questions. Your comments are always welcome.
