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These are a few of the main questions we have when dealing with external partnerships, rated as important as costs increase, contract negotiations, penalties, price adjusts and so on. But there’s always a light at the end of this tunnel. After defining that we do want and need in a long-lasting relationship, only its adequate management will turn this model into reality. An effective Relationship Management goes beyond a governance model overcoming the sense of "the processes of interaction and decision-making among the actors involved in a collective problem that lead to the creation, reinforcement, or reproduction of social norms and institutions."1
This relationship management naturally includes metrics and actions that are monitored as in any governance model, but also aggregates values and behaviors that although being somewhat intangible are the fundamental stone on the way we want to do business. When we rely on values that are common to both companies – or that are built up together - the basic idea is to increase CMO/3PL reliable productivity. This is something that both parties want, since it permits continuous growing and is what will add value to the company, either to the vendor or vendee. The Virtuous Cycle that results from this relationship has just one target: an everlasting consistent service level. We want our counterpart to be successful and the mental image I have is that of a paddle ball game, beach tennis like, where the objective is to play in such a way that our “opponent” hits and continues giving the ball back to me.
I’ve mentioned earlier the need and benefits of a correct relationship management, but what does it really stands for? From my perspective, it’s basically the approach and the way we interact with others. A basic
but more-than-vital relationship management happens at home with your wife and children – and as father of three boys, sometimes I face scenarios much more challenging and complex than some situations with my Director’s Board. Imagine a hypothetical situation when your wife wants to visit her parents on a Sunday afternoon, in the same time you want to see that football match on your favorite couch. Not so uncommon, right? How do you manage this situation? Would you say “I won’t go” or even “you go alone” (which is much worse) and create a tense situation or would you rather state “Ok, I want to go too but could it be just after the game?” The point is to understand the others perspective/constraints and negotiate it in a win-win agreement, most of the time with no direct monetary values involved. Someday you might have to watch the game with your not-so-dear father-in-law, and deal with it the same way you deal with complex situations at work. If it happens frequently, deeper discussions are needed but always with respect and focused on the main topic. I believe that economics, administration and negotiation background are needed for someone in an external relationship model, but Conflict Management trainings are the ones that do make the difference in this role.
In a 3PL or CMO – Contract Manufacturing Organization – you will always seek to optimize a committed business relationship over an engagement-type one. To differentiate both, I use the “Eggs and Bacon Postulate” comparison, simply explained as: For your brunch, when you want bacon and eggs, the chicken is engaged in the process, while the pork is committed. Not that your professional partners have to be sacrificed-lucky them! - but the level of involvement we have is remarkably different. We want a 3PL that suffers and succeeds with us.
pharmoutsourcing.com | 37 | July/August 2016
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