Editor’s Note: in his most recent post expert author Andy Akrouche shows you how to move from “making deals” to “building relationships” with your suppliers.
Originally posted on Relational Contracting Intelligence Blog:
With everyone from deal architects to premier transaction firms embracing a “Relationship” mantra when it comes to complex contracting and outsourcing, the true meaning of the word is being lost in a sea of good intentions. Or to put it another way, just because you say the word relationship, or incorporate it into your negotiation process, does not mean you have a relationship with your trading partners. This is especially true when you continue to view doing business through a transactional lens.
The fact is that 70% of all long-term outsourcing, futuresourcing and PPP initiatives underperform or fail because they are structured as a deal or a transaction as opposed to a strategic relationship between key stakeholders. Whatever name you give it, a transaction or a deal is still a deal.