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Some changes to the way in which information is conveyed between the provider of a service and the organization's internal customers for that service will be experienced.

In some areas where informal reporting was used before, the service provider will produce formal reports.

Managers will no longer be able to stop the service provider in a corridor or in the lunch room to ask "How are things going?" Instead, they will receive regular, formal reports on the provider's performance.

We now come on to a technique that will prevent problems later.

Reporting Matrix

A "reporting matrix" will show how reports are passed upwards in the organization.

	A	B	C
Michael	*	*	*
Geoff	Fu *	Fu *	Fu *
Allan	iu	iu	iu
Brian	iu	iu	iu
Carol		iu

Table 35.1: Reporting matrix

The codes used are

FS	prepares formal scheduled reports
Fu	prepares formal, unscheduled reports
iS	prepares informal, scheduled reports
iu	prepares informal, unscheduled reports
*	receives reports for below

In this example, Allan, Brian and Carol have previously reported informally to Geoff. This means that their reporting was probably verbal. It was certainly not laid out in a set pattern.

They also reported to him on an unscheduled basis. This means that their reporting was not triggered by an event. The event could have been either the passage of a period of time - such as a week - or the occurrence of an incident that required them to report - such as systems downtime.

Geoff reported to Michael formally - in a set format - and on a schedule - such as monthly.

Most management reporting tends to be either formal and scheduled ("FS") or informal and unscheduled ("iu").

Decision

Now there will be a decision to be made when the work on these tasks is outsourced. You can opt for one of the following.

• The provider will continue to report in "iu" mode, informally and irregularly. This is not usually the way that organizations see their relationship with the provider. To ensure that service levels are being met, organizations usually require a ôsign-offö on performance.
• The provider will move to "iS" mode, informal but scheduled. This again is hardly likely to meet the client organization's requirements.
• The provider will move to "Fu" mode, formal but unscheduled. Once more, the client organization is likely to want regular reporting.
• The provider will move to full "FS" mode, reporting formally and regularly. This is usually what the client organization believes that it needs. It is, therefore, usually the position that providers adopt.

Most providers will have little difficulty in providing formal and regular reports to their clients. These are, after all, the reports that most clients want. The difficulty with the move from "iu" to "FS" reporting usually occurs within the client organization.

Let us move back to the example.

	A	B	C
Michael	*	*	*
Geoff	Fu	Fu	Fu
Contractor	FS	FS	FS

Table 35.2: Outsourced reporting

The provider will be reporting formally and regularly to Geoff, who will previously have been reporting formally but irregularly to Michael.

Options

Geoff has a number of options.

1. He can receive and note the regular reports from the provider, summarizing them into formal, regular reports to Michael. This will change Geoff's reporting to Michael to be regular, at specific intervals. At first, Geoff may wish to save three months' reports from the provider and summarize them into a quarterly report. He will find it easier, eventually, to report to Michael with the same regularity as the provider reports to him.
2. He can decide at the outset to report to Michael formally and on the same regularity as the provider reports to him.
3. He can receive the reports from the provider and pass them on, as they are, to Michael.
4. He can continue to report to Michael formally but irregularly, by summarizing the latest reports from the provider. This will mean holding a number of reports from the provider so that they can be used for his reports to Michael.

Let us look at this from Michael's view. If he had wanted regular reports from Geoff, he would have asked for them. What he wants is a report from Geoff on request.

To Michael, the first three options are unacceptable, even though they will make Geoff's life easier.

For Geoff, the fourth option is the hardest, as he will now have to set up a system for holding reports from the provider until a report is requested by Michael. This may take more time and resources, and may involve other staff.

Suggestions for action

The solution may be to use additional time, resources and staff, and this may be acceptable to your organization.

You should, however, look at how formal, regular reporting from the provider will impact on the management culture of your business.

Once you have either accepted the requirements imposed by formal, regular reporting or reduced the level to informal or irregular reporting, then that is what you should agree with your provider.

For some reason, many organizations ask for more regular, more comprehensive and more detailed reporting from their providers than they ever had from their internal departments and staff.

If this is a question of trust, in that you trusted your own staff but do not trust the provider, then stop now and re-evaluate your whole approach to outsourcing.

You will need to go through the reports that were produced by your staff and decide

• if they are needed at all
• if they are needed in a different format or with different contents, to be effective
• if they are going to the right recipients
• if they are needed by other people.

You can then present your report formats to the provider, with a list of recipients and a schedule for preparation.

These reports can be associated with individual service levels within the outsourcing agreement.