Implementation of scale means the conversion from low-scale to high-scale transactions.
This conversion occurs in the context of converting from an in-house process to an outsourced process. (It may also occur upon changes from one in-house process to a newly scalable in-house process.)
The Transition Plan
In planning, each party needs to identify what events or conditions are necessary to accelerate and facilitate implementation of scaling. A solid transition plan, that reflects (after due diligence) the reality of the enterprise customer’s situation “AS IS” before the transition, is essential. Further, the timing of implementation should follow a sequence of critical path, so that the entire process can be managed rapidly. Finally, implementation requires definition of the new operating environment, especially important for audit and control purposes under Sarbanes-Oxley specifically and under good management practices generally.
Contingency Planning
While transition plans may be effective operationally, extraneous events may slow or impede completion of transition. The parties should have a mutually agreed path for responding to emergencies and contingencies during transition. This contingency plan is crucial if the transition is rapid or rushed. In cases not involving a rapid, rushed or “forced” conversion, where delays in implementation occur due to external forces, the parties nonetheless will need to deal with allocations of cost and risks.
