Negotiation

Delivering contracts with teeth

Posted: 04/01/2016 - 19:52

All too often, businesses are faced with bold promises about the services they will receive from their outsource providers; they are drawn in by the “ideals” pitched to them and ultimately, find themselves disappointed with the outcome as those services fail to live up to expectations.

Navigating the uncertain new world of outcome-based outsourcing

Posted: 03/14/2016 - 20:28

The days of paying supply chain outsourcers by number of FTEs are on their way out. In that purely cost-based model, the OEM’s interests – keeping hours low to contain costs – are inherently pitted against their managed service provider’s – putting more FTEs on a project to maximise revenue. Instead, OEMs are now exploring outcome-based models, where sellers become partners who share the risks and rewards of achieving their goals.

Trumping Price-Only with Best Value

Posted: 01/02/2014 - 07:49

It is likely that no other subject gets as much attention when two companies are entering, or extending, their outsourcing business relationship as the effort to come up with a fair pricing structure. Money is money after all, and money talks. You know the drill by now: the conventional procurement process pits buyers and sellers on opposite sides of the table – and there’s no way around it, right? Wrong!

Stewart and Plotkin, the Prisoner’s Dilemma and Generous Strategies

Posted: 10/16/2013 - 08:01

I’ve been a game theory fan for many years, particularly as it relates to showing that cooperative behavior indeed creates true “win-win” situations. So I was excited to read a work of University of Pennsylvania professors Alexander J. Stewart and Joshua B. Plotkin, ‘From Extortion to Generosity, Evolution in the Iterated Prisoner’s Dilemma‘, published recently in the Proceedings of the National Academy of Science (PNAS).

Getting to We: Time for a New Negotiating Paradigm

Posted: 10/02/2013 - 08:08

If your recent experiences with new or renewal contract negotiations are something akin to visiting the dentist for a root canal, we’d like to introduce you to a much better – and pain-free! – way to go about negotiating. It’s called Getting to We: a five-step process for crafting business relationships with the intent to drive collaborative partnerships.

John Nash, Robert Axelrod: Game Theory and the Art of Playing Nice

Posted: 05/16/2011 - 02:38

Next up in my series of columns about the great academic thought leaders who were seminal in the development and success of modern outsourcing are two of my favorite game theorists: the mathematician and Nobel laureate John F. Nash, who took economists a step or two beyond Adam Smith with his ideas on game theory and the art of collaborating, or playing together nice, for the win-win; and Robert Axelrod, who verified the beauty of cooperation through his early work with computers to solve a classic game theory behavioral experiment. 

Ronald Coase: Business is a math problem

Posted: 04/08/2011 - 00:51

This week’s column focuses on big thinker Ronald Coase. Coase, a giant of modern economic science and 1991 Nobel laureate helps us understand a key fundamental of business: that business (and outsourcing decisions) are a math problem. 

While outsourcing has been in the limelight for some 20 years, various threads of economic thought and research stretching for more than 80 years planted the seeds of modern outsourcing, centering on growth theory, transaction costs, game theory, property rights, deregulation and the nature of the firm. 

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