Vested Relationships: A Better Way to Outsource CRE

In today’s complex business environment, establishing trustful and transparent relationships between buyers and suppliers has become crucial for strategic success. Join Kate Vitasek, a renowned authority in collaborative business relationships, and Bryan Jacobs, for this episode of The Team Around the Table, where they explore the power of “vested outsourcing” – a methodology that fosters win-win scenarios in contractual agreements, enabling buyers and suppliers to achieve strategic outcomes together through shared values and goals. 

Vested Relationships: Five Lessons Learned 

1. Shift from Transactional to Relational Outsourcing: Getting off the “transactional treadmill” and moving to relational, outcome-based economics is crucial. It shifts the emphasis from mere service provision to partnership, shared goals, and mutual success. 
2. Transparency and Trust Matter: Establishing a transparent relationship where both parties share information, risks, and rewards is foundational. It fosters trust, which is essential for navigating complex business environments and achieving strategic outcomes together. 
3. Outcome-Based Contract: Crafting contracts that focus on clearly defined and measurable outcomes—rather than detailed process specifications—shifts the spotlight from process to result. It allows for flexibility and innovation and drives collaboration toward shared goals. 
4. Incentive-Aligned Pricing Models: Implementing pricing models that align incentives with desired outcomes ensures that buyers and suppliers are mutually vested in the success of the engagement. It’s a departure from traditional transactional pricing toward an outcome-based model that centers on creating value, not just exchanging it. 
5. Governance through Insight, Not Oversight: Transitioning governance from an oversight model to one based on insight and collaboration allows for a more adaptive and responsive relationship. This approach encourages joint problem-solving and risk management, along with a mindset of partnership—navigating change and achieving strategic goals, together. 

Embracing vested relationships requires a shift in mindset. Traditional procurement and contract management practices often prioritize risk mitigation and cost savings—but this comes at a cost to genuine partnership and innovation. Overcoming these challenges requires organizations to embrace transparency, build trust, and commit to shared success. 

Vested relationships present a powerful model for CRE outsourcing. By focusing on outcomes, fostering trust, and embracing a collaborative mindset, companies can unlock unprecedented value and achieve their strategic goals. As the industry continues to navigate an increasingly complex business environment, adopting vested relationships are a key to building resilient, adaptive, and successful partnerships. 

Find out more about Vested.