Many organizations have a strong oversight mantra. But sadly, oversight can often lead to bad decisions – especially when it comes to large, complex and high-risk projects. Why? Psychological studies show that people fall victim to what is known as “status quo bias” and the sunk cost fallacy. Simply put, we tend to get sucked into […]
Blog
One Service – Three Visions
In our 3 Day Vested Outsourcing course we teach organizations how to do a Business Model Map in order to determine if Vested is the right Sourcing Business Model for their situation. One question that came up was, “Wouldn’t a buyer and a supplier have the same shared vision once they decided to create a […]
Keeping Contracts Simple
I’ve long been an advocate of “plain language contracting” – in fact, for many years. After all, it is the users of the contracts who need to understand and live into them. Of course, I perked up when I saw an insurance company issuing a plain language contract. The company is Lemonade and they are […]
Avoiding the Death Spiral
Many procurement organizations don’t realize they are in a virtual death spiral when it comes to cost-cutting. Procurement organizations that constantly demand lower and lower costs (often having a metric known as Purchase Price Variance) often find themselves in a painful death spiral with the companies’ supplier relationships. When a company gets in a tit-for-tat clash […]
Paying the Piper
The old saying goes, “He who pays the piper calls the tune.” The adage dates back to medieval times and emphasizes the fact that the person paying someone to do something decides how that something gets done. Paying the Piper makes a great deal of sense in transactional deals; if Company A is footing the bill, shouldn’t it call the shots? […]
You May Think You Know What You’re Doing…
Seth Godin’s recent blog on “Rationalizing your project” really struck a chord with me. Godin talks about how companies and individuals fail to follow advice because, “In the face of helpful advice, it’s easy to say, ‘sure, that’s what I’m already doing,’” or justify altering the advice to make things easier for them. He gives an excellent […]
Counting on What Counts
The saying goes that not everything that counts can be counted, and not everything that can be counted counts. Those are excellent words to live by in both personal and business relationships. I especially like the nuance of the first part of the quote because all too often companies are seeking the holy grail of “value,” but […]
Don’t be a Stick or a Paper Tiger
KPJR Films has a fabulous documentary called “Paper Tigers.” It’s about how a high school decided to approach troubled youths – who are acting out because of trauma and toxic stress levels – with love and respect rather than punishment. The documentary is supported by research from clinical physician Dr. Vincent Felitti and CDC epidemiologist Robert Anda; they […]
George Akerlof and the Lemon Problem
George Akerlof put math behind the concept of the “lemon problem” in his classic 1970 article, Akerlof (with Michael Spence and Joseph Stiglitz) received the 2001 Nobel Prize for their analyses of markets with asymmetric information. This YouTube video explains the lemon problem in an easy to understand two-minute clip. In a nutshell, there are honest sellers and dishonest sellers (e.g. those selling […]
A New Day, A New Way for Island Health and Hospitalists
Our latest case study relates the extraordinary and inspiring journey of the Victoria Island Health Authority and their Hospitalists as they used the Vested model to transform their troubled labor relationship into a highly collaborative one. Most on the team have called the shift to transformational. Some go so far to say it was more like […]