The Buffalo Blog

The outsourcing weekly round up

Computing
Capita lands NHS Choices contract
http://feeds.computing.co.uk/c/554/f/7121/s/267edc1/l/0L0Scomputing0O0Ccomputing0Cnews0C2230A8880Ccapita0Elands0Enhs0Echoices0E43540A65/story01.htm

Downturn may not see drastic cuts in IT spend
http://feeds.feedburner.com/~r/zdnetuk/news/20/~3/460872017/0,1000000308,39559183,00.htm

EDS goes unpunished for data loss
http://feeds.computing.co.uk/c/554/f/7121/s/26a2be2/l/0L0Scomputing0O0Ccomputing0Cnews0C22310A380Ceds0Egoes0Eunpunished0Eloss/story01.htm

ZDnet
DWP cuts £50m off major tech projects
http://feeds.feedburner.com/~r/zdnetuk/news/20/~3/463963916/0,1000000308,39561659,00.htm

CCF
Tech Mahindra creates 500 UK jobs
http://www.callcentre.co.uk/articledetails?groupId=10231&CMPI_SHARED_articleId=1584187&CMPI_SHARED_CommentArticleId=1584187&CMPI_SHARED_ImageArticleId=1584187&CMPI_SHARED_ToolsArticleId=1584187&CMPI_SHARED_articleIdRelated=1584187&version=1.0

Silicon
The 11 IT projects costing DWP £1.6bn
http://www.silicon.com/financialservices/0,3800010322,39351688,00.htm

Finextra
HSBC applies to build £300 million data centre in York
http://www.finextra.com/fullstory.asp?id=19346

Accountancy Age
CFOs rely on short-term fixes to combat credit crunch
http://www.accountancyage.com/accountancyage/news/2231520/cfos-rely-short-term-fixes

Soucingfocus.com
Guthy-Renker extends BPO agreement with EDS
http://www.sourcingfocus.com/index.php/site/newsitem/1123/

Capgemini buys in Czech Republic
http://www.sourcingfocus.com/index.php/site/newsitem/1124/

Akbank takes on Patni for CRM solution
http://www.sourcingfocus.com/index.php/site/newsitem/1125/

Financial services outsourcing slowdown will regain momentum in early 2009
http://www.sourcingfocus.com/index.php/site/newsitem/1126/

Internal comms: doing right by the staff

The sudden failure of Woolworths, the never-changing stalwart of the high street, brings up some important communication issues. Job cuts are occurring across the country at a worrying rate and all too frequently it’s the press that knows before the staff, causing a lot of undue angst and anger.

.In existence-threatening cases, a la Woolworths, it’s understandable the word doesn’t emerge via the right channels. Management are trying to ensure the future of the business and prevent it going under – that last thing they are going to be thinking about is communication. But, even in extreme cases, internal communication should be a top priority.

While some might forgive a company on its knees for being a little taciturn, the sad thing is that most of the current job losses are happening at viable companies. Downsizing for the downturn, a necessary business evil, is creating comms issues aplenty – disgruntled employees, nervous investors and an angry press.

Then why is it that there are so many anecdotes of people being kept in the dark by their employers. Stories abound of people getting to work only to be shepherded into meeting rooms to be told their jobs are on the line. Companies continue to get it so very wrong.

This is the harsh end of capitalism where money is seemingly the only thing that matters. But it doesn’t have to be and shouldn’t be like this. Good internal communications in times of trouble are not just vital to a company’s reputation but are owed to the hard-working staff that put that company where it is.

It’s a very human trait to hold-off on telling people about something but in the case of business there is simply too much at stake. Perhaps managers simply think the problem will disappear in the end – unfortunately it never does. The irony is that by being up front with staff and other stakeholders the outcome can be so much better:

• Staff will respect the honesty
  • Will have time to look for alternative employment
  • Will have little desire to ‘get back’ at a company through whatever means
• Investors will also be able to make informed decisions about their stocks and are much more likely to stick with an ‘up front’ company

So, to the business leaders of the world who have found themselves on shaky ground, please think about the staff…it’s definitely worth your while.

Communication in a downturn is a must, not a luxury

This has undoubtedly been an unpredictable and turbulent time for many businesses. The press has its eye firmly fixed on redundancies and financial disasters while CEOs’ have their sights set on bottom lines and cost reduction. This in itself creates an atmosphere of worry and doubt amongst consumers, potential business partners and employees.

Inexplicably, communication budgets seem to be one of the first aspects of a business to fall. It seems that, at a time when organisations should be doing all that they can to raise their target audience confidence in a product or service, they close up and try to shut themselves off from the outside world. Why? Tough decisions are expected to be made during a downturn, communicating these decisions poorly during difficult times is what causes unnecessary confusion and doubt.

Simply sending out a short press release announcing job cuts and then refusing to comment will only further incense both the media covering the story and the audience the company is trying to reach. Having a strategic approach to crisis management, encompassing an effective communication plan, is paramount.

A journalist investigating 1000 sudden job losses due is looking for information and a solid viewpoint from the company, simply ignoring the enquiry and refusing to say anything is just asking for the news story to be pounded by the press. A release or a statement outlining that strategic meetings are being held with employees and customers to discuss the company’s innovative plan of action during economic uncertainty stands to gain much more confidence from all who engage with it. Continuous information, effectively communicated, is needed when facing any crisis. It is imperative that focus is not only placed on a business’ customer/partner base but also on the internal communications

A good PR strategy will integrate both internal and external communications. Arguably it should be internal communications that is first addressed when facing any sort of crisis, especially one that has a possibility of redundancies or salary freezes. Organisations cannot simply cover their ears and hope for the best. Ensuring that all in the business know the company plan and feel as though they are being kept in the loop is the first step to navigating a challenging period. The PR strategy can then focus on informing the partners/customers/public and aim to not only generate more revenue, which is essentially the foundation of any PR campaign, but also focus on letting the world know that the organisation has a well thought out plan of action which everyone in the business have engaged in.

Communications should be of high importance during a time like this. Cutting PR budgets and burying heads in sand will not see a company through a crisis. Sooner or later organisations will realise that the most important time to effectively communicate is when difficult issues are addressed.

IT For All

Really interesting release through from ThinkGrid this morning, a new company aiming it’s software as a service (SaaS) to the SME market, down even to the smallest startup.

It’s great to see the way the IT industry is changing and that the development of SaaS and other web-delivered IT services are altering the way all businesses experience IT. Enterprise-level IT is now becoming a reality for even the smallest company due to the virtual elimination of expensive initial investments.

The organisational and streamlining benefits of quality enterprise IT are becoming available for all, and almost every small business could be set to benefit.

The outsourcing weekly round up

As a new feature for all our outsourcing clients we will be highlighting some of the top industry stories each week.

Comments are always welcome

sourcingfocus.com
The financial crisis will boost outsourcing as a strategic business tool, says EquaTerra.
http://www.sourcingfocus.com/index.php/site/newsitem/1101/

Computing
NHS IT programme costs London hospital £7.2m
http://feeds.computing.co.uk/c/554/f/7121/s/253460c/l/0L0Scomputing0O0Ccomputing0Cnews0C2230A0A980Ccare0Erecords0Esystem0Ecosts/story01.htm

Outlook for NHS IT is far from healthy
http://feeds.computing.co.uk/c/554/f/7121/s/25c2356/l/0L0Scomputing0O0Ccomputing0Ccomment0C2230A4260Coutlook0Enhs0Efar0Ehealthy0E4334629/story01.htm

ZDnet
Obama and team set to make their mark on tech
http://news.zdnet.co.uk/itmanagement/0,1000000308,39544374,00.htm

Analyst firm cuts IT-spending outlook for 2009
http://news.zdnet.co.uk/itmanagement/0,1000000308,39550712,00.htm

Computer weekly
Public sector shared services market worth £4bn over five years
http://www.computerweekly.com/Articles/2008/11/11/233310/public-sector-shared-services-market-worth-4bn-over-five.htm

Personnel Today
BBC HR chief Stephen Kelly leaves to join Logica
http://www.personneltoday.com/articles/2008/11/13/48358/bbc-hr-chief-stephen-kelly-leaves-to-join-logica.html

Computerworld UK
Sheffield confirms Capita for £200m deal
http://www.computerworlduk.com/management/it-business/services-sourcing/news/index.cfm?RSS&newsid=11967

The damaging media spotlight

Luke Johnson wrote in this Tuesday's FT about the damaging effects of the media spotlight when it is unleashed in anger. He highlighted some interesting opinions about reputation but appeared to miss the point on media crises and the long-lasting effects they have on companies.

Contrary to his article, the effect of a media mess-up can easily destroy a company, perhaps even more so in the B2B space. The colossal amounts of money spent in B2B industries makes people a lot more diligent in their selection of suppliers. A whiff of malpractice, failure, or underhanded tactics, in the press, will quickly see a supplier struck-off any procuremrnt list.

The fact is that bad press stays with a company for a long time; interminably now with Google news cataloguing just about everything on the web. In the consumer space, as with his Bernard Matthews example, sometimes price comes to triumph over opinion but this is rare. The oft-cited example of Ratner’s Jewellers, destroyed by derogatory comments of its owner, is a clear example of a media crisis turned business disaster.

It’s important for public facing businesses to recognise the reputation risks that are out there. Don’t stop talking to the press, just put the measures in place to respond appropriately when things go pear shaped.

The power of the online interactivism

An interesting article in Saturday’s Guardian explored the phenomenon of ‘interactivism’ in the context of the ongoing Brand/Ross phonecall debacle. Whether we agree with the almost nuclear (reputation wise) fallout that has ensued from the pair’s on air antics, ‘interactivism’ (while a tad academic semantically) has great implications for business, politics and of course, entertainment.

 

The core themes were fleshed out in the article: such as the power these well-meaning or malignant forces now wield and how pretty much nothing, reputation-wise, is safe. The reputation of people, companies and organisations now ebs and flows rapidly like a wave and can go from good to bad faster than ever before.

 

What the article missed was the type of people behind this online ‘interactivism’ – if you look at the statistics you won’t find a representative demographic. The people behind these colossal online movements, and they are colossal (try gathering 37,000 people in a town hall to complain about a BBC radio programme), are the vociferous, the politically active, the ones with something to say. But many of them may not be a direct audience of your organisation i.e. some may be abashed listeners but many are likely to have heard about the problem and pitched in with their own ‘two cents’.

 

The fact is that whether your audiences are those doing the talking everyone will soon enough be reading the damning headlines like everyone else. A big story is quick to gain credence on the web as was seen in the rapid increase in complaint numbers as the Brand/Ross story evolved last week. Someone, somewhere, will voice every question and concern that may have passed through people’s heads and if they have good reason and a good argument, it won’t be long until their arguments hit the mainstream press provoking a bigger and more dangerous media storm than would have occurred otherwise. .

 

It often comes back to this point though: these are the same kind of people that have always mattered to companies, political parties and other organisations. They’ve been there writing their letters and making their angry phonecalls for years. It’s just they are now immensely more powerful than ever before. It’s now so much easier and quicker for them to voice their views and have a tangible effect on an organisation.

 

For communicators this is another, from a long line of examples, example of why monitoring and engaging with active and vociferous audiences online is vital. The vociferous audiences will not go away and they will bring your organisation to its knees if it deserves it.

 

For this reason keeping on top of issues, putting your organisation’s voice out there in an appropriate and truthful way as soon as possible is the only way to retain integrity in an online interactivism storm. Heard this before? It is PR after all…