An outsourcing success story: Prudential Real Estate
I spoke with Michael O’Sullivan, the Managing Director of Prudential Real Estate to get some real world advice on making outsourcing a success.
With over 30 years of experience as a small business owner, Michael has built a successful real estate business from the ground up. Currently responsible for the management of over 1,000 rental properties and employing more than 40 staff across four branches, Prudential Real Estate is a prime example of what a small business owner can achieve.
About 5 years ago, Michael was keen to grow the business, however he needed to free up some finances to achieve his objectives. A review of the business revealed two options to save money, automation, and outsourcing.
Real Estate is an administration heavy business. Using a variety of software, both customised and off-the-shelf, Michael was able to automate many processes. However, there was still a significant portion of administration that could be outsourced. After extensive research, Michael decided to engage a business process organisation, based in the Philippines, to assist with routine administration and financial tasks.
“We were effectively able to eliminate clerical positions within the organisation,” Michael notes. And with the newly available financial resources, he was able to create additional, income generating, positions in the Sales and Property Management teams.
After several years of outsourcing, experience has taught Michael 3 key things:
Preparation is key
“Have a clear idea of what tasks you want them to do.” Michael advocates having key objectives outlined before contacting outsourcing providers. This will help you find the right fit with a provider and sets you up for clearly evaluating outsourcing performance.
Measurement is vital
Michael has observed that keeping track of outsourced work and monitoring workload and productivity is not always easy. But it is necessary. It is important to consider how you will measure success before engaging an external resource.
Training is essential
Michael explains, “Be prepared to train people. You get (out) what you put into it. Put in some time toward training people and preparing resources for them to learn from.” Initially, outsourcing is an investment of your money and your time, which may seem like a hassle. But in the long run, when done correctly, it will develop into a cost and time saving exercise.
And there’s something else Michael has learned. It isn’t enough to do these things just once. They need to be done regularly. Outsourcing is not a ‘set and forget’ activity. Your business changes, technology changes, the market changes. And by revisiting your objectives, your methods of measurement and your documentation, you can ensure that your chosen outsourcing solution continues to be an effective and positive investment for your business.
In 2022, I was tasked with auditing all tasks being performed by the outsourced staff. From this audit, several gaps were identified in training material and systems guides. Working closely with Michael and the outsourced staff, I re-wrote outdated instruction documents, created new instructions where none previously existed and developed checklists and protocols for measuring accuracy and productivity. These documents are currently published on the internal website and are used to benchmark performance and train newly hired outsource staff.
My previous experience working within corporate business coupled with my tertiary business degree recommended me to Michael and this project. Its success led to further collaborations with Michael, including the audit and re-writing of company-wide systems documents, a strategy and performance review overhaul and associated communications plan, as well as an engagement project aimed at counteracting the effects of lockdown.
Ultimately, for Michael, the decision to outsource was a good one, “Honestly, we wouldn’t have grown without it.” The outsourced staff have become a valuable part of the business and an integral part of the team, allowing Michael and the business to reinvest profits and expand into new markets.
Got a question for Michael about outsourcing? Let me know and I’ll put you in touch.
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Shoot me an email. I am a writer with a background in marketing and a passion for small business. I specialise in writing for business, website copy, content creation, and communications strategies.