1. November 15, 2004 1 Alternative Sourcing: Lessons Learned and Results Achieved Professor Jacques S. Gansler Roger C. Lipitz Chair Center for Public Policy and Private Enterprise School of Public Policy University of Maryland Key Points We’ve Heard Monday, November 15 th, 2004

2. November 15, 2004 2 Forum Discussion Findings  Sourcing must be linked to personnel planning; and to financial information system planning.  Need a way to get money up front – for capital investment; and for government to learn and hire support; and change mgmt preparation.  Need more education and training.  Use “best value” for all – without going to OMB  Must continue to improve the circular controlling the process –(e.g.) Allow public/private arrangements (in the competition) on work now done by the government.  Performance work statement is critical – must give maximum flexibility to achieve the desired overall objective.

3. November 15, 2004 3 Forum Discussion Findings (cont.)  Be very careful about the message being delivered, as to the reason for the change (e.g., not to fire people) and must repeat often.  Bring Union into the process right from the beginning – evidence consideration of the impacted employees.  After MEO award, government Performance and cost must be visible and monitored just like contract.  Must get buy-in by all of the stakeholders – inside and outside of the organization; must have a full communication plan.  Bring in the Inspector General’s office at the beginning.  Must do a business case analysis – even though baseline cost are unknown; estimate them.  Change Management is the key to success.  In planning workforce impact consider attrition and skill mix in deciding on competition impact plans – and announce plans to minimize fear of impact.