Trust is an illusive quality that means different things to different people. That is why, with the same set of facts, some people will trust and others will not. It is based on a set of values held by individuals.

To avoid this costly and time-consuming mistake, explore with your partners what trust means to you and to them. Then, come to an agreement on the qualities of trust in your relationship. Be sure to remember that trust is not only about getting the work done – that is really compliance – but also about the relationship component of trust that develops during the course of business.

By openly talking about trust up front, you can by-pass the timely technique of waiting until your partner disappoints you before you have the discussion. Once trust is built, you will be able to think more strategically with your partners.

That’s so much better than being “nickled and dimed” to death.

It happens a lot, we think.

Then there’s the good. More than one customer has told me of their experience with their service provider proactively informing the customer of the outsourcer’s inadvertent mistake and voluntarily reimbursing the customer for the costs consequent to the mistake – even though the customer didn’t know and likely never would have discovered the mistake. In these stories, the customers refer to the providers as their “trusted partner.” In these types of relationships, the customers say their level of trust in the provider started from the very first interactions with the provider, even during the RFP process. they say the provider’s trustworthiness is notable from the outset from the behavior of its people and the values in the corporate culture.

Though trust has to be earned continually over time, I think customers also have to be willing to trust.

I often ask customers to describe an example of how their service provider went the extra mile for them. I hear all sorts of great examples of flexibility and “stepping up to the plate” to do what’s best for the customer, despite significant obstacles. And some of those stories are pretty dramatic. But what stands out is that the customers are always really surprised when their provider performs such services at no cost – even when the cost to the provider isn’t very much, it makes just as dramatic an impact on the customer as the times when the cost to the provider is very high.

Customers are seldom surprised, though, when the first unanticipated challenge arising during the transition/implementation phase of the relationship occurs and the provider wants to talk about money. Like you said, this often occurs very soon after signing the contract and agreeing to act “in the spirit of partnering.” Unfortunately, there are so many horror stories in the marketplace of providers “nickel-and-diming” their customers that buyers of outsourced services expect this to happen and, in expecting it, really don’t trust their providers.

Money issues can quickly cause one to doubt the “togetherness” aspect of one’s partner in any type of relationship and thus erode trust. And unanticipated cost issues will always arise in a relationship. Perhaps when they negotiate their outsourcing relationships, buyers and providers need to spend more time talking about their expectations around how “the togetherness spirit” from which they will both discuss unanticipated financial issues, rather than just planning who’s responsible for what and planning for conflict resolution if the issue is not easily resolved.

Here’s another aspect to consider: In relationships where the customer has visibility into spend, those companies tell me that the visibility helps them understand the provider’s true costs and it thus lessens the level of mistrust when a cost discussion arises. But many providers are not willing to be transparent.

Anyhow, one thing that you don’t mention here is TIME. Nobody should get the idea that TRUST is a short-term process or that, indeed, real short cuts are possible. It is behaviour over time and not short-term behaviour that stimulates and maintains trust. A company has to be CONSISTENTLY trustworthy to gain real benefits from relationships and that means that they must have a corporate ethic that is, at heart, genuinely trustworthy. This is not something that you can act out or strategise.

If you create a “strategy” that harvests trust but then gouge your client at the first possible price-raising opportunity then you are not, de facto, trustworthy.

If, on the other hand, you make a business or operational mistake, you should always see that as an OPPORTUNITY TO COMMUNICATE. It is not the problems that happen in business that cause a breakdown in trust, it is the manner in which you react to such problems that will certainly do that if you get it wrong.

Nothin but nothing works better in creating trust than the statement “we’ve got a problem (or we’ve made a mistake) and here’s what we’re doing to put it right and to make sure that you are not sorely disadvantaged”.

Sounds simple? Sure. But it doesn’t happen very often….

As for problems with contracts, don’t worry about it. That’s what happens when the people we call lawyers get involved. It’s not necessarily to do with the core relationship.

Brett Trevalyan

Director

The DDC Group

http://www.datacapture.com