I was at a conference focused on contracting and a law school professor asserted, “You have three ways to deal with risk. Transfer it. Accept it. Or Insure for it.” There is nothing much new with those options, shifting risk is a popular pastime. But I propose there is a fourth way that is even […]
risk
Outsourcing Practices to Avoid
Traditional negotiation tactics all too often include hiding authentic intentions and using scare tactics to help tilt the playing field to their advantage. While aggressive tactics may get a short-term win, they often backfire, especially when used in longer term strategic supplier relationships and outsourcing contracts. These five scary practices should be avoided: Penny Wise […]
Avoid the Risk-Shift Game
Among the tried and true contract negotiation strategies, shifting risk is probably among the most ubiquitous and actively used—and best-rewarded when successfully accomplished. , mainly because it typically happens after you have a “deal.” Have you ever heard this: “Great! I’ll take it. How about 90 day payment terms?” or “Perfect…how about a two-year warranty instead of a one-year warranty?” For […]
Conjoined Twins: Opportunity and Risk
I have written about the nature of risk and how taking a risk averse approach to business relationships is common, but not the best path for long term innovative success. I was reminded of this idea once again following my recent appearance on Jon Hansen’s BlogTalkRadio show with Phil Coughlin, who is President Global Geographies and Operations […]
IACCM’s Contracting Excellence — July 2014
Risk management – let’s share the risk, not dump it! Article by Kate Vitasek in IACCM’s Contracting Excellence Magazine, published 24 July 2014 Risk management by definition is ambiguous and unpredictable, but it doesn’t have to be. Picture a highly collaborative approach. It shares the risk instead of pushing it to the other guy and […]
Going “All-In” on Innovation
If you are taking a low-risk approach when it comes to innovation, you may not be doing much innovation that’s truly worthwhile. It’s an interesting take on innovation – and one that was shared in this Industry Week article, “Innovation: The High Cost of Low Risk.” The article takes the stance that “not all innovation […]
Spacing Out on Risk, Shared Value and Desired Outcomes, Part 2
Last week I talked about the Apollo Program and Robert Braun’s idea that you can “celebrate failure” – which boils down not being afraid fail in order to achieve your Desired Outcome. Braun, NASA’s Chief Technologist, probably knows a little something about risks, innovation and how to handle them. In an interview in NASA’s ask […]
Spacing Out on Risk, Innovation and Desired Outcomes, Part 1
A risk-averse mindset would never have landed us on the Moon during the heady days that followed John F. Kennedy’s directive in 1962 for the U.S. to “go to the Moon” by the end of that decade. I love to use story of how powerful Kennedy’s words were when I teach students and executives about […]
Achieving Agility through the Vested Model
Last time I talked about an overused buzzword in business and outsourcing, collaboration, and how Vested Outsourcing takes it from overuse to useful. So while that memory and momentum is still fresh, another oft-used term for this occasional series is “agility.” While most every company prides itself on its agility in reacting to the vagaries […]
