Strategies for Building a True Business Alliance: Relocation
Balanced scorecard, service level agreements (SLAs) - we have all become familiar with these terms as key drivers to successful partnerships. According to a recent study by McKinsey & Company, only half of all joint ventures are successful to both partners. Why is this?
Let’s look at relocation management companies (RMC) specifically. SLAs based on key performance indicators are traditionally incorporated to measure and define operational and contractual touch points. Metrics are agreed to between the partners where the RMC will bear monetary “penalties” for service levels below a specific percentage indicator.
So, why do half of all partnerships fail? Partnerships between corporate clients and RMCs need to become true alliances where both parties gain something from the relationship - a balanced scorecard approach. SLAs should be designed as balanced measurements to relocating employees and their companies as well as the RMC. If RMCs meet or exceed the established metrics, the reward to the RMC should be more than simply not having to pay a penalty. So the key here is building an alliance where both parties benefit from achieving operational targets - an alliance between two parties engaged and committed to developing and maintaining the relationship. The monetary metric at stake should not be the driver or definition of the relationship; rather, a symbolic measure where both parties are saying “we are invested and committed in this relationship”.
For the corporate client that could translate into a cost effective, well-run relocation program that also yields employee satisfaction. For the RMC, it is creating and maintaining a strategic engagement.
Today’s business environment presents unique challenges. Developing successful business alliances, where both parties support common goals, is the key to creating a lasting relationship; and avoiding the repetition of the up-front costs, complexity, and disruption associated with procuring and implementing that initial engagement is a win/win alliance.
Posted on 01/4/2010 in Domestic Relocation | Comments (2)
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