This month’s Academic of Outsourcing tribute goes to Douglass C. North for his work on “new institutional economics.” North – a professor, economist, philosopher and economic historian – was the co-recipient (with Robert Fogel) of the 1993 Nobel Prize in Economic Sciences “for having renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change.”
"There has got to be a better way!" That’s the common lament from all aspects of the healthcare industry from providers, payers, and patients alike when talking about the relationship between those three parties. It not unusual to hear complaints like, “misaligned financial incentives”, the “tyranny of the 15-minute visit”, or it’s an “unsustainable system”.
Most businesses like to blame failed or protracted negotiations on an inability to reach agreement on the financials, contract terms, legal issues or some other business measure - but after 30 + years of contract negotiations experience, I’ve rarely seen a deal lost on these items. Negotiations are far more likely to falter due to lack of trust, or due to a weak relationship amongst the parties.
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.
I often talk about the need for insightful governance as an essential part of business frameworks. In fact, it’s what Vested’s Rule 5 is all about. So I was happy to learn about the work of two scholars from Italy’s University of Salerno who have taken this idea a vital step forward.
We know that trust, ethical behaviour and collaboration go hand-in-hand in our personal and social relationships. But how widespread are those things in our business and outsourcing relationships? Obviously they should be!
My last two columns on Umair Haque and Joseph Stiglitz have shifted the focus a bit to the adaptations that global businesses face as more and more challenges to the traditional ideas surrounding capitalism and globalisation emerge.