A Shift in In-plant Business Models
In a recent post on Rochester Software's In-Plant Insights blog, consultant Howie Fenton looked at the different in-plant business models (e.g., fully funded, partially funded, full cost recovery, etc.) and noted a recent shift toward greater financial accountability.
"Historically, when in-plants are created they are created with a vision," he wrote. "This vision could be: to provide an easily accessible, convenient service for staff; reduce the time or costs of outsourcing; better monitor the use of their logo and brand identity; reduce the risk of a security breach; and various combinations of these objectives.
"Over time however, the department that the in-plant reports to can change, the manager in administration can change, and management in higher levels of the enterprise can change," Fenton noted. "Any of these changes can prompt reviews of the in-plant’s performance. The challenge is that several of these models don’t charge back for individual jobs, which makes cost justification in general and pricing comparisons of internal cost/product vs. outside price/product challenging."
To find out what conclusions he has drawn, read his full blog here. Here are some more of Howie's thoughts on the industry: