E-MailMending a Broken Relationship: Foundations of Success
Sourcing relationships are growing ever more complicated. The goals are more grandiose, the numbers of players involved is increasing, and the risks are greater. With this trend has come an increased likelihood of relationship breakdown. Indeed, as I have discussed in the past, customers and vendors are too often falling into what I call a value-shrinking loop, rather than getting into a value-expanding one (see Figure 1 and " An Organizational Approach to Managing Outsourcing Relationships ," Sourcing Executive Update, June 2000). This is not due to lack of will or bad intent. Rather, it is a lack of capability. Simply put, few IT organizations (on either side of the customer/vendor divide) have significant, institutionalized capability to keep themselves from falling into these loops; fewer still have the capability to efficiently and consistently get themselves out. Thus, as customers and vendors have struggled through poor, value-depleting relationships, both have begun to recognize the importance of building such capability. Without it, both sides lose.
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