Relationship or transaction: 10 factors to consider
At this week’s IACCM workshop in Sydney, Morag Lokan (Assistant Commissioner at the Australian Taxation Office) presented her thoughts on the role of relationships in contract management.
Among her charts, she set out a list of factors to be considered when evaluating the potential nature and depth of the relationship. I have expanded these slightly, to produce a set of ten.
- What is the likely duration of the contract?
- How many organizations and stakeholders are involved?
- Does your organizations speak with one voice?
- Have the suppliers worked together before (and with what result)?
- Have the suppliers worked with your organization before?
- Are they competitors?
- How important is the contract to your organization?
- How committed is your organization to making this work?
- How committed are the suppliers to making this work?
- Is there evidence of relational capability?