Facilitate a Strategy Session
Principle No. 2: Facilitate a strategy session
Facilitate a strategy session to review outsourcing goals, anticipated ROI, alternatives available, reasons why provider was selected, key expectations and concerns, greatest wants, needs and risks not willing to take. This important step will ensure that time is best utilized and the right stakeholders are involved in critical discussions during the contracting process. Again, doing this after the fact, or not at all, will cost more money in the long run and take more time.
Principle No. 3: Put a strategic plan on paper
Putting a strategic plan on paper, and consulting it on every redline change to stay on focus, is a critical part of the process. With a written plan, the negotiation team can benchmark critical decisions against the plan created by the stakeholders and focus on the really important issues. This is a fundamental to identifying priorities and sticking to them throughout the process. If you don't write it down and measure how you follow it, it will cost you more in time and money, and the results may not be as strong.
Principle No. 4: Negotiate for value with a win-win approach
Negotiate for value with a win-win approach. It's not going to help your cause if your vendor can't make money on the deal, and you'll feel the impacts when the vendor starts to cut corners. Remember, that at the end of the contracting process, you are outsourcing a critical function in your business to the vendor. If you have negotiated too aggressively and forced them to take positions they do not want to take, you have not set a strong foundation for a good working relationship.