New Math

There are far too many examples of failed outsourcing relationships. These failures typically occur because of relationship management issues that arise when expectations are not met due to failed communication, poor governance, misaligned interests, and unclear expectations. Hiperos defines the New Math of Relationship Management as:

When expectations are met, both the buyer and the provider win. Hiperos developed its relationship management solution to ensure that the simple equation above remains true. For buying organizations, the results are reduced costs, lower business risks, and improved contract performance. For providers, the results are similar – the cost of managing the relationship is reduced, the risk of the agreement failing is lower, and the performance of the service is improved.

This new math demands that two key variables remain constant:

1. Communication
2. Measurement