The success rate of HRO contracts is bad to dismal. That isn\u2019t to say that companies are not saving money, or that vendors are providing bad service levels. But often, companies are dissatisfied with their overall relationships. The key indicator for satisfaction is not service delivery or cost savings (although those are drivers). The key indicator is how well you\u2019ve structured your partnership around the contract.<\/p>\n
Partnership goes both ways. There must be some form of understanding about the core strategy and direction of the contract from the outset \u2013 beginning from sales. This is really about understanding the \u201cspirit\u201d of the relationship. From the vendor perspective, it means that understanding the goals should translate into not being and nickel and dime store \u2013 not everything is actually out of scope. While certain services are not spelled out in the scope of work (SOW), the spirit of the contract and the philosophy of what was agreed do between the negotiators in the sales process may not have made it to the SOW. In reality, there will always be some disagreement about what\u2019s in the SOW and what was actually purchase\/sold in spirit.<\/p>\n
From the customer side, it\u2019s the understanding that a win\/win is possible. Nobody really wants their vendor to go out of business, but in their particular case, they want a cost model that is too good to be true. It\u2019s also understanding that sometimes things go wrong. They went wrong when the processes were in-house, and the new outsourcer will have some glitches too.<\/p>\n
I\u2019ve heard companies say \u201cif you don\u2019t come down hard on them, they won\u2019t do the work.\u201d The problem is that if you do \u201ccome down hard\u201d they won\u2019t go above and beyond the call of duty when the time comes for that. I use the term \u201cvendor\u201d a lot because it\u2019s the easiest descriptor. In truth, partner is the correct term \u2013 and the important one if you want success in HRO.<\/p>\n","protected":false},"excerpt":{"rendered":"
The success rate of HRO contracts is bad to dismal. That isn\u2019t to say that companies are not saving money, or that vendors are providing bad service levels. But often, companies are dissatisfied with their overall relationships. The key indicator…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[37,8,17,34,36],"tags":[],"class_list":["post-598","post","type-post","status-publish","format-standard","hentry","category-change-management","category-strategies","category-hro","category-implementation","category-vendor-management"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=598"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/598\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}