Contracting: Why Do We Keep Destroying Value? – Part I

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It is no longer a hypothesis that our current processes used to establish commercial relationships are flawed – on both the buy and sell side. Yet we keep trying to optimize each side of the process (which logically may mean we are increasing the value destruction) and don’t identify the flaws that continue to diminish value for both sides. Most of the time is spent on the pre-nuptial agreement, trying to anticipate all the things that may go wrong (self-fulfilling prophecies perhaps?) and how to protect our own interests.

Far more time should be spent on establishing a good relationship and working on the marriage in order to multiply the total value for both partners. In the first of a two-part series, Anne will challenge long held assumptions based on Theory X that drive the wrong behavior and propose going even beyond Theory Y (Best Practices) to Theory Z (Next Practices). She will explore how both the buy side and sell side approach the contracting process today, when the leverage shifts between the two parties and how to improve the way we work with our trading partners.

If you are interested in learning how to address changes in processes and competencies to create a relationship that will result in a sustainable marriage, then this is a session you will not want to miss.


Click Link Below for PDF of Presentation:


Part II

In the second part of this two part series, we will address how to build a sustainable relationship after the marriage takes place. In addition, if you are interested in joining a small working group to address these issues, that opportunity will be available to you.

Click here to view the second part: Building High Value Relationships Under Theory Z

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Anne has been leading consulting and financial management organizations for over 25 years. She has extensive expertise in Strategic Sourcing, change management, contracting & contract management (both the buy side and sell side) organizational design and supply chain management. Anne has a passion for collaborating and educating her clients while helping them to uncover hidden value in their organizations. In addition, Anne has been named by Supply & Demand Chain Executive as a “Top 100 Provider Pro to Know” every year since 2007 and a 2013 Top Female Supply Chain executive.


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