Mr WordPress on Hello world!
Close relationships are frequently associated with a lack of rigor. They tend to prevent innovation and act as a barrier to new talent or competition. As a result, pressure builds and change, when it comes, can be violent.
To safeguard this change, the new powers introduce a period of strong controls and create methods to ensure compliance. For example, take this quote: “Trust has been replaced by contracts and the bonds of allegiance by the monitoring of behavior, backed up by the ever present threat of financial penalties”.
This could surely be a description of the last ten years, when the forces of globalization have destroyed many traditional relationships and compliance, control and commoditization have been the watch-words of corporate behavior. loyalty has been sacrificed for the cheapest source of supply. Contracts have become a weapon for financial penalties.
However, this quote comes from a history of the English king…
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Last week, IACCM ran a workshop for a group of its Australian members. The topic was “Tackling project risk through improved commercial process” and the audience came exclusively from the buy side – a mix of procurement, contract management and project management professionals.
There was wide acceptance of the idea that improved management of risk depends on a more holistic and open approach by both suppliers and customers. Participants acknowledged that imbalance in risk allocation and a focus on the consequences of failure results in behaviors that undermine trust and respect between the parties, which in turn reduces the probability of a successful outcome.
We ran an exercise in which the audience identified the types of behavior needed to support a healthy and productive relationship. They listed attributes such as openness, honesty, quality of communications. When asked to rank their own organization’s performance on these attributes, there was a wide…
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