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Wikipedia, Vested is ‘a hybrid business model in which both parties (the company and the service provider) in an outsourcing or business relationship focus on shared values and goals to create an arrangement that is mutually beneficial to each’. “More traditional business relationships


are focused on win-lose arrangements, where one party benefits at the other’s expense. Like I’ve said, this is currently the usual contract we see in the UK. In contrast, a Vested agreement creates a win- win relationship in which both parties are equally invested in one another’s success. As The University of Tennessee College of Business Administration says, it essentially doesn’t look at ‘what’s in it for me’, it looks at ‘what’s in it for we?’ “It’s gained such momentum in the US, that


the University has conducted award-winning research into this concept and runs courses, specifically based on the Vested business model. Kate Vitasek, faculty at the University and author, researcher and innovator of the Vested business model, speaks at conferences and events, to help inspire and motivate business audiences. “One area she discusses is how outsourcing


deals can be structured better by buying in a neutral environment. An environment where everyone is on a level playing field. An environment where the deal can be discussed openly. “It’s an approach that we really believe in


and we’re prepared to put our money where our mouth is – one of our team has gone out to the University to take part in the


course, so we’re in a strong position to share learnings. I believe elements of this Vested approach could revolutionise the way that clients and FM providers in the healthcare sector work together. It could bring benefits to both parties; benefits that include: • Mutual success for both: more than simply focusing on the success of the contractual relationship, Vested commits both the client and the service provider to the success of each other’s overall business.


• Stronger partnerships: a more lasting relationship is developed between the client and provider, through a strengthened sense of partnership.


• Aligning on goals: by sharing their expertise and aligning their goals, both parties are able to drive innovation, adapt to changing needs and mitigate risk while working towards mutual success.


“Vested challenges the usual way of


working. It creates an environment where new thinking is welcomed. Moreover, it paves the way for both businesses to be striving towards mutually aligned success. Instead of having 10 people working for the provider and 10 people working for the client, you suddenly find yourself with 20 people all working towards the same end-goals. You’ve doubled your team. You’ve doubled your brain power. You’ve doubled the outputs.


What could this look like in action?


“As each FM contract is unique and has various factors to take into consideration, it’s


difficult to give one example to show how Vested could look. It’s so much more than a simple ‘tick box’ exercise. It’s a mindset change. It’s not ‘them’ and ‘us’; it’s everyone. “It’s been reported that one of the


major factors in Carillion’s demise was a big acquisition it took on in 2011; which reflects the importance of the contractual set-up between a FM provider and client. The consequences of any acquisition taken can have a significant impact on the business; whether it’s a large, established provider or one who is relatively new to the sector. This is why we believe a mindset change is more important than ever. “This approach is about encouraging


innovation. Innovation that means those providing FM services can achieve the client’s desired outcomes. Innovation doesn’t come for free – particularly when it’s client specific. It usually requires up-front investment. However, this innovation can pay dividends if the contract allows for the FM provider to be suitably rewarded when successful new ideas are introduced. “Any change to how business relationships


operate will take time. There are individual nuances, synergies and ways of working that are bespoke to each relationship. This isn’t a change that can happen overnight. However, I believe aspects of the Vested approach could greatly benefit the business relationships within the FM and NHS sector. It offers a much more promising future for all parties. If we combine forces, and work together towards common goals, just imagine what could be achieved.”


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