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Test2RART1LookatthestatementsbelowandtheadvicetobusinessesontheoppositepageaboutusingothercompaniestoruntheirITservices.1、theneedtoteachskillstoemployeesworkingontheoutsourcedprocess2、rememberingtheinitialreasonforsettinguptheoutsourcedproject3、theneedtodrawupagreementsthatsetouthowintegrationistobeachieved4、addressingtheissueofstaffwhoworkontheoutsourcedprocessbeingatadistantsite5、theimportanceofmakingsomeoneresponsiblefortheintegrationprocess6、staffontheoutsourcedprojectfamiliarisingthemselveswithvariousdetailsofthebusiness7、problemsbeingassociatedwithanalternativetooutsourcingWhenabusinessdecidestooutsourceitsITservices,itneedstoconsiderthequestionofintegration.Fourexpertsgivetheirviews.Tramcere,SilicaSystemsAnoutsourcedITserviceisneverafullyindependententity.Itistiedtothehomecompany'spreviousandcontinuingsystemsofworking.Butdespitetheaddedresponsibilityofmanagingnewwaysofworking,manybusinessesignoretheintegrationprocess.Theyfailtoestablishcontractsthatdefinethewaysinwhichthetwocompanieswillworkalongsideoneanother,andfocussolelyonthetechnologicalaspectsofservicedelivery.Rayner,DomolaBusinessesneedtobuildintegrationcompetencycentresdedicatedtomanagingtheintegrationeffort.Itiscriticaltohaveanindividualinchargetocheckthattheexternalandinternalbusinessoperationsworktogether.Althoughcompaniesoftenthinkofoutsourcingasawayofgettingridofpeopleandassets,theyneedtorememberthat,atthesametime,outsourcinginvolvesgainingpeople.Becausethereisanewoperationbeingcarriedoutinadifferentwayoutsideofthehomebusiness,thiscreatesatrainingelement.Locke,DigitalSolutionsCommunicationisthekeytosuccess,andoutsourcingtootherregionsorcountriescanleadtoarangeofproblems.Foranysuchinitiative,itisnecessarytocreateateamwherethereisgood,opencommunicationandaclearunderstandingofobjectivesandincentives.Bringingpeopletothehomelocationfromtheoutsourcedcentreisnecessary,sinceitcanaidunderstandingofthecomplexitiesoftheexistingsystem.Tointegrateefficiently,outsourcingpersonnelhavetotalktothehomecompany'sexecutivesanduserstounderstandtheirexperiences.Noon,JGTechOnewaytoavoidthedifficultiesofintegrationistocreateajoint-venturecompanywiththeoutsourcer.Thus,acompanycanswapitsassetsforashareoftheprofits.Yetjointventuresbringpotentialtroubles,andcompaniesshouldbecarefulnottolosesightoftheoriginalrationaleforoutsourcing:togaincostefficienciesandqualityofserviceinanareathatforsomereasoncouldnotbecarriedoutentirelyin-house.Thecomplexitiesandcostsofajoint-ventureinitiativeshouldnotbeunderestimated.Part2Readthearticlebelowaboutthechangingroleofhumanresourcesdepartments.ThebestpersonforthejobEmployeescanmakeabusinesssucceedorfail,sothepeoplewhochoosethemhaveavitalroletoplay.Employeesareacompany'snewideas,itspublicfaceanditsmainasset.Hiringtherightpeopleisthereforeasignificantfactorinacompany'ssuccess.(0)
G
Ifthehumanresourcesdepartmentmakesmistakeswithhiring,keepinganddismissingstaff,abusinesscandisappearovernight.Manycompaniesnowrealisethatrecruitingthebestrecruitersisthekeytosuccess.SarahChoi,HeadofHRatEncopic,believesthatthinkingcommerciallyisakeyqualityinHR.EverydecisionanHRmanagermakesneedstoberelevanttoadvancingthebusiness.(8)...CThat'snolongerthecase.HRmanagershavetothinkmorestrategicallythesedays.Theycontinuallyneedtothinkabouttheimpactoftheirdecisionsonthebottomline.(9)F...Forexample,achiefexecutivewillexpecttheHRdepartmenttoadviseoneverythingfromtheheadcounttowhethertoproceedwithanacquisition.WhydopeoplegointoHRinthefirstplace?Choihasareadyanswer.Ithinkmostpeopleintheprofessionareattractedbyalong-termgoal.(10)DNothinghappensinthecompanywhichisn'taffectedbyordoesn'timpactonitsemployees,sotheHRdepartmentisacrucialpartofanybusiness.Notalloperationalmanagersagree.AninformalsurveyofattitudestoHRdepartmentsthatwascarriedoutlastyearbyaleadingbusinessjournalreceivedcommentssuchas"Whatdotheyactuallycontribute?"(11)A
AsChoipointsout,salarieshaveneverbeenhigherand,inaddition,HRmanagersoftenreceivesubstantialannualbonuses.Despitethefinancialrewards,HRmanagersoftenfeelundervalued,andthisisamajorreasonformanyleavingtheirjobs.(12)...EHowever,alackoftraininganddevelopmentisamoresignificantfactor.Thesedays,goodprofessionaldevelopmentopportunitiesareconsideredanessentialpartofanattractivepackage,Choiexplains.AButrisinglevelsofremunerationdemonstratethattheprofession'sgrowingimportanceiswidelyrecognised.BAtonetime,aprofessionalqualificationwasrequiredinordertoprogresstothetopofHR.COtherdepartmentsandseniorexecutivesusedtoseeHRmanagersashavingapurelyadministrativerole.DSinceit'soneofthefewareaswhereyoucanseethewholeoperation,itcanleadtoaninfluentialroleontheboard.EBeingseenassomeonewhojustticksoffotherpeople'sleaveandsickdaysdoesnothelpbuildasenseofloyalty.FTheythereforeneedtobecompetentinmanyaspectsofacompany'soperations.GOntheotherhand,recruitingthewrongstaffcanleadtodisaster.Part3
CriticalPath
WhenDavidHaydenrealisedhiscompanywasheadingfortrouble,hetookdrasticmeasurestogetitbackontrack
DavidHaydenfoundedhiscompany,CriticalPath,anemailprovider,in1997totakeadvantageoftheboominemailtraffic.CriticalPathbecameapubliccompanytwoyearslater,andHaydentooktheopportunitytostepdownfromhisexecutivepositioninordertoworkonpersonalprojects.Atthesametime,heagreedtostaywiththecompanyasChairman,butthebusinesswasputinthehandsofnewmanagersbyitsinvestors.Withsector-leadingproductsandanexpandingmarket,thecompanyseemedtobeontheupandup.However,byearly2001,itwasintrouble.Sharesthathadbeenworth$26in1999,whentheywerefirstsold,weredowntoamere24cents.
Calledinbyapanickingboard,HaydenfoundhimselfbackinchargeasExecutiveChairman,tryingdesperatelytorescuewhathecould.The1,100staffhadlostconfidenceinthecompanyanddidnotknowwhatwasgoingtohappentothem.And,asHaydendiscovered,themanagementteamwasincompetent.Thoseguysdidn'tunderstandtheproductorthesector,'saysHayden.Theheadsofdepartmentdidn'tcommunicateandtheydidn'tlead.'Butwhatwasworse,CriticalPathhadlostthegoodwillofitsinvestors.
Haydenknewthatbringingthefiguresundercontrolwouldbeavitalstepinthecompany'sturnaround.'You'vegottosortoutthefinances.Forme,thatmeantgettingbackthegoodwilloftheinvestors.Thatwastough,afterwhathadhappened.Butalthoughtheywereangrywiththecompany,theydidn'thavebadfeelingsaboutme.ItoldthemthatIknewIcouldgetthecompanyonitsfeetagain.'Hewasauthorisedtomakewhateverchangeswererequired,andhisfirstactwastofindpeople
withinthecompanyhecouldtrustandputthemincharge.
ThenextthingHaydenhadtotacklewasmorale.'Everyonelefttheofficeatfiveonthedot-theycouldn'tgetawayquicklyenough.Togetthebuzzbackandwinthestaffover,Ihadtoprovemyowncommitmentandputintheextrahourswiththem.'Inreturn,itwasassumedthatnobodywouldaskforovertimepayuntilthecompanywasonitsfeetagain.Contrarytonormalpractice,Haydenwasreluctanttolaypeopleoff,andapartfromnotreplacingpeopleastheyreachedretirementage,helefttheworkforcelargelyunchanged,althoughhedididentifykeypeoplethroughoutthecompanywhoweregivenmoreresponsibility.
But,asHaydeninsists,beforeacompanyreachessuchacrisis,therearewarningsignsthatanyfinancialdirectororaccountantshouldtakenoteof.'Abusinessthathasanunrealisticpricingpolicyorhastonegotiateextendedcreditwithitssuppliersisintrouble,'ishismessage.'Orifyouoftenhavetoapplyforyouroverdraftlimittoberaisedorhavetroublepayingtaxontime,somethingneedstobedone.'
By2003,thecompanywashealthyagain,withreasonablystablefinancesandamodestbutsteadysharepriceof$1.60.'Onethingthathelpedsaveuswasthatourtechnologyworked,'saysHayden.'With20millionemailaccounts,weneverlostasinglemajorclientbecausetheproductkeptonworking.'Withideasforafreshventuredemandinghisattentionelsewhere,Haydenhasmovedon.'Itwastimetogo,'hesays.'I'mnotaturnaroundspecialist.Ipreferstart-ups.'13WhateventcoincidedwithCriticalPathbecomingapubliccompany?
AHaydenbecametheExecutiveDirectorofCriticalPath.
BInvestorshiredareplacementteamtorunCriticalPath.
CCriticalPathlaunchedasuccessfulnewproductonthemarket.
DCriticalPathwasfloatedontheStockExchangeat24centspershare.
14WhichofthefollowingsituationsdidHaydenfaceatCriticalPathin2001?
ATheemployeeswereworriedaboutjobsecurity.
BTheinvestorswerecallingforchangestothecompanystructure.
CThemanagementwasmisleadingthestaffaboutthecompany'sposition.
DTheboardofdirectorsdidnotrealisethescaleofthecompany'sproblems.
15OnereasonHaydenwasabletoturnCriticalPatharoundwasthat
Ahemanagedtofindnewinvestors.
Bthefinancialsituationwasnotasbadashehadthought.
Chehadbuiltupagoodrelationshipwiththemanagementteam.
Dhewasgiventhesupportthatheneeded.
16WhatwasHayden'spolicyregardingthestaffofCriticalPath?
AHepaidovertimetoeverybodywhoworkedoutsideofficehours.
BHereducedtheworkforcebyoperatinganearlyretirementscheme.
CHegavekeystafftheopportunitytohelphimsetgoalsforthecompany.
DHerestoredmotivationbyshowingwillingnesstoworkalongsidestaff.
17AccordingtoHayden,whatcouldindicatethatabusinessisintrouble?
Aproblemskeepingaccountsuptodate
Bsuppliersrefusingtooffernewcreditterms
Cafrequentneedtoincreasetheamountborrowed
Ddifficultiesingettingpaymentfromcustomersontime
18HaydenleftCriticalPathafterhehadrescuedthecompanybecause
Ahewantedtodevelopthetechnologyforanewinternetservice.
Bhewantedtoconcentrateonfoundinganewenterprise.
Chehadbeenofferedajobwithamajorinternetcompany.
Dhedecidedtogointopartnershipwithamajorclient.Part4FightingFit
FineFitness,thehealthandfitnesscluboperator,announcedanimpressivesetofresultsyesterday:(19)a38-per-centjumpinannualpre-taxprofits,thecompanyclaimedthatithad(20)noneoftheproblems(21)
lastweekbyitsrival,TopFitAccordingtoSamanthaCollier,thechiefexecutive,FineFitness(22)strongandison(23)toreachitstargetof100clubswithinthreeyears,itsstrategyunaffectedbytheapparent(24)downoftheeconomy.
Thecompanyopened12newclubsinthepastyear;(25)itstotalto51.Theyhave(26)tobehighlysuccessful,withpeoplejoininginlargenumbers,especiallyinthe25-to-40agerange.Eventhemore(27)clubsarestillseeingsalesgrowth,alongwithrisingretention(28)ofmorethan70percent.Thiscanbeseenasclear(29)oftheappealofFineFitness.
MsCollieradmittedthatastherewere(30)toomanycompaniescompetingwithoneanother;therewouldalmostcertainlybe(31)inthehealth-and-fitness-clubsectorofthemarketShepredictedthat,withinarelativelyshorttime,theremightbeonlyaboutthreemajorcompaniesstillin(32).However,shedeclinedtosaywhichthesewerelikelytobe.
Profitsroseby£million,althoughtherewasafallingrossmarginsfrom31percentto28.6percentbecauseofhigherinsurancepremiums,extramanagementcostsandstart-upexpensesforthecompany'snew(33)inSpain.19A
Stating
BReporting
CRemarking
DInforming
20A
taken
BfeltCexperienced
Dcaught
21A
released
B
issued
Copened
Drevealed
22A
stays
Bremains
Cmaintains
Dkeeps
23A
track
B
direction
C
way
Dline
24A
falling
B
breaking
C
cutting
Dslowing
25A
bringing
Bputting
C
getting
Dmounting
26A
shown
B
resulted
C
proved
Ddemonstrated
27A
installed
BformedCestablished
Dconfirmed
28A
rates
Bstandards
Cproportions
Dvolumes
29A
witness
Bsign
Cdisplay
Devidence
30A
purely
Bmerely
Csimply
Dbarely
31A
union
Bconsolidation
Calliance
D
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