Real (HRO) World Solutions

In Friday’s post, As the HRO World Turns, Mark called for buyers to independently tell their stories about experiences with outsourcing providers.  I concur with his plea, as there is a need for this type of dialogue in the marketplace (and the workplace) based on two important factors – (1) the reconceptualization of commoditization and (2) the value of collaborative networking.  

Seth Godin’s book, Meatball Sundae: Is Your Marketing Out of Sync, describes new thinking around commoditization quite well.    Godin explains how emerging trends have changed the rules for marketing.  These trends demand personalizing the message and creating an authentic story.  What is required is for buyers to provide the actual narrative of what they lived through and what was valuable and not valuable for them.  This means that the agreed-to communication from buyers and outsourcing providers focuses on conveying the realities of the service engagement.  So, the idea that an outsourcing provider can “bundle” their organization in a presentation given by buyers is thinking that is outmoded in today’s marketplace.  Instead, when the transaction is described to the HRO World attendees by buyers, that story in itself becomes a commodity.  So, this is one way that the shift in rethinking traditional commoditization play out; that is, from the idea that the service itself is a commodity to the idea that authentic interaction is the commodity.  A second shift in commoditization is that buyers, in fact, buy the provider organization itself as a commodity.  In other words, providers are framed symbolically based on meaning created from the stories that are put forth that people can relate to and affirm.  These stories have to be conveyed considering the soft side of the buyer.  Hence, providers have a perfect opportunity to allow buyers to describe their experiences and explain what the provider is about, a marketing strategy that matches commoditization forces.

The second factor listed above, the value in collaborative networks, seems to be relevant to Mark’s humble request as well.  A recent study published by Wipro and Knowledge@Wharton, Innovation Sourcing:  All Roads Lead to Collaborative Partnership Networks, highlights the importance of effective strategies for innovation and places collaborative networks at the centerpiece of this arrangement (with the caveat that a certain culture and mindset has to be in play for collaborative networks to add value).   The study states that innovation is viewed, “. . . not just as Company A and Company B doing something together, but as innovation being sourced from a network of partnerships.”  Given certain conditions for sourcing innovation, collaborative networks are endorsed in this study.  

The wealth of partnerships present at the HRO World represent the brain trust for the future of HR and outsourcing solutions.  By opening up dialogue in a way that is less protective of the relationship between buyer and provider and more prone to interaction with the audience, all parties can benefit. 

Let’s keep the conversation going.