Outsourcing Commentaries: Building Trust
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(3) Follow Through. Do what you say you are going to do,and do it within
the timeframe promised. Another way of phrasing this is, manage
expectations effectively. Don't say you'll do something during the
negotiation process that then you do not do. Keeping promises
consistently builds trust. Failing to keep promises starts to eat away
at any trust that has already been built. If you cannot keep a promise,
communicate as early as possible that the promise will not be kept, and
provide an alternative way of keeping the promise (e.g., a later
delivery date). Recognizing the importance of promises,even small
promises,builds trust. Failing to keep even small promises can create
large problems around trust.
There are many examples of how failing to effectively manage
expectations can chip away at trust. In another recent transaction,for
example,our client was interested in reviewing the provider's disaster
recovery plan.The provider intimated that the plan was on the shelf and
promised to deliver the plan on Friday. A week later,the plan still had
not been delivered. When the plan was finally delivered, late, it was
subject to extraordinary scrutiny - in no small part because the delay
affected the customer's level of trust in the integrity,quality,and
actual depth of the plan.
And it is a two-way street: In yet another transaction, the customer and
its advisor set out an aggressive negotiating schedule with tight
turn-around times for the bidding providers and much looser response
times for themselves. The providers met their deadlines,but the customer
and its advisor consistently missed theirs,and then required the
providers to make up for lost time by working weekends and holidays. In
the end, the providers lost faith that the customer would be able to
achieve the tight timeframes required of it during delivery and,
consequently, increased their prices to cover contingencies. So, in this
case, poor expectation management did not merely chip away at trust - it
resulted in a higher price.
(4) Step in the Other Side’s Shoes. Think about issues both from your
perspective and your customer’s perspective. What does the other side
need? Why do they need it? Be over-helpful and offer solutions to issues
your customers might not know they have. For example, if you know your
customer will need SAS 70 reports to comply with Sarbanes-Oxley,figure
out how you can deliver those reports in a cost efficient way and
propose alternatives for special requests. Considering issues from the
other side demonstrates that you are thinking about things from that
person’s perspective,which helps build trust.
In a recent deal, the provider’s lead negotiator did an excellent job
“stepping in the other side’s shoes” right at the outset of
negotiations. “We understand,” he began, “that you and your advisors
will need time at the start and throughout our discussions to huddle
among yourselves - our team has gone through this process many times
before, but it is probably the first time for you, at least as a team,
and you’re still getting to know each other.” Perhaps obvious, but this
simple acknowledgement instantly created considerable trust, which
subsequent patience on the part of the provider further nurtured.
Another good example of stepping into the other side’s shoes is to
identify mistakes that the other side may have made and to address those
mistakes particularly where the mistake is beneficial to you. It is
inevitable in the negotiation of a large transaction that a mistake will
be made. It is also probable that such mistakes, if significant, will be
discovered prior to closing. It is better to divulge the mistake early
and to correct it professionally than to have it discovered just before
closing. Helping the other side to do so demonstrates commitment to them
and builds trust.
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