Challenging traditional sourcing

Posted on May 11, 2016

It may come as no surprise to hear that very few outsourcing deals end up reflecting the objectives originally set out by the business.  All too often these deals do not deliver on their promise because the process by which they are drafted, negotiated and implemented is dominated by traditional law firm and advisory approaches and the ‘noise’ of minor issues that arise from the use of standard templates.

Typically these deals have insufficient focus on the real objectives and on developing solutions collaboratively with suppliers - ultimately creating sub-optimal results.

These were the challenges that Radiant Law’s recent breakfast workshop attendees came together to discuss, with the aim of finding a better contracting and deal management approach that could generate business value and improve outsourcing relationships. What everyone agreed was that we need different ways of approaching the sourcing process, to build trust-based relationships and ensure that your deal will remain on track for the duration of its term.

Much of the discussion focused on looking at the ways in which on objective-led contracting approach can put your business requirements at the heart of the sourcing process and drive positive outcomes for both parties. In addition, we partnered with Elixirr, the European Outsourcing Association’s 2015 Outsourcing Advisor of the Year, to discuss their collaborative solutioning approach to sourcing. This breaks with the convention of traditional RFP approaches, and when combined with Radiant Law’s five-step objective-led contracting process, can provide an end-to-end solution to successfully deliver against the outcomes most important to an organisation.

In a podcast recorded after the workshop, Justin Cornish, head of Radiant Law, South Africa, spoke with Graham Busby and Sam Parker of Elixirr about how more collaborative sourcing and contracting approaches can rapidly get your business to a more effective deal, as well as some of the trends set to shape the deals of the future.

To listen to the podcast click here

As Graham points out, businesses need to challenge the thinking of ‘work to process’ and instead, allow process to work for them.

Benefits of the Objective-led Contracting Approach

  • You are more likely to achieve a better outcome in your contract by focusing up-front on what matters
  • The contracting process is faster as issues that don’t matter can be resolved quickly
  • The contractual relationship starts on a better footing, with a clear understanding by the parties of what is trying to be achieved and a more manageable contract

Benefits of Collaborative Solutioning

  • Suppliers are able to get a comprehensive understanding of the client’s requirements and shape a proposal that offers realistic scope and timeframes
  • Clients are able to assess how the supplier’s team performs under challenge, rather than how effective they are at writing proposals
  • Clients benefit from the best thinking from all participating bidders, which ultimately adds more value than a team documenting RFP requirements in isolation
  • Overall, a more effective and bespoke outcome is accomplished at a much lower cost and shorter timeframe than the traditional RFP-based approach

You can read more about our approach to objective-led contracting here. To discuss the needs of your organisation and look at how objective-led contracting and collaborative solutioning can help you add business value, complete the form below or email us today.