We outsource our entire software development department to an external agency in Eastern Europe. They do excellent work, but they are technically not employees. Should we put this external agency on our Accountability Chart, and if so, how do we hold an outside vendor accountable to our internal EOS standards?

Question

Tyler Smith · Accepted Answer

Your Accountability Chart must represent every major function of your business, regardless of whether the people doing the work are on your internal payroll. If you outsource your entire software development department to an external agency, that function still needs a seat on your chart. If you leave it off, you will suffer from a massive accountability gap.

To structure this, create the Software Development seat on your chart. Do not put the name of the external agency as the owner of the seat. Instead, you must assign one internal employee, typically your Integrator or a Head of Technology, to own the seat above it and act as the relationship manager.

Below that internal manager, you will place the outsourced function. In the name line for that seat, put the name of the key account manager or lead developer from the external agency, followed by the agency name. This person is your single point of contact.

Next, define the five core roles for that seat just like you would for an internal employee. The external lead must GWC these roles. They must understand your expectations, want the partnership, and have the capacity to deliver.

Finally, hold them accountable using your weekly Level 10 Meeting metrics. If they cannot or will not participate in your operational rhythm, or if they fail to hit their weekly measurables, you must treat them exactly like a failing employee. You either find a new contact person within their agency, or you replace the vendor. Accountability does not stop at your payroll boundary.