Relationship Health Assessments

April 25, 2022 11:00 AM By SIREAS

The Key to Ongoing Relationship Success 

    Given the complexity of the contracts and service delivery models prevalent in corporate real estate organizations today, customer and service provider relationships rooted in integrity have never been more powerful or valuable. Maintaining a healthy relationship requires a mindset and skillset to build trusted partnerships and the willingness of both parties to continuously expose pain points and work together to resolve them. One way to measure the health of a relationship is through a relationship health assessment. 

    What is a relationship health assessment? A relationship health assessment is designed to understand the relative health of the partnership, alert to potential problem areas, and determine the strength of alignment with the goals and objectives of the parties. Ultimately, people want to be seen, heard, and understood. A relationship health assessment is a platform for stakeholders within the relationship to voice their perspectives and views on how the operating model is performing. A relationship health assessment analyzes three key areas: strategic alignment, governance and continuous improvement and innovation. 

1. Strategic Alignment 

    The most successful, long-term outsourcing partnerships are ones in which there is a strong alignment of business strategy with the goals and objectives of both organizations. Strategically aligned organizations have common characteristics including a solid foundation of trust, transparency, communication, and collaboration. Assessing how well two organizations are aligned includes a review of what and how information is exchanged, if investment levels are appropriate, how well system integration and collaboration flow, and quality of resources, processes, and programs. 

2. Governance 

    A governance platform is the mechanism for defining how the relationship will operate. It determines who the stakeholders are, how communication and decision-making will flow, how performance will be measured against contractual commitments, and what the mechanism for change control and issue resolution will be. A relationship health assessment includes a review of the effectiveness of the governance program and the mechanisms for holding the partnership accountable for delivering against desired outcomes. It seeks to assess if there is strong alignment and mutual commitment to maximize shareholder value while minimizing total cost of ownership. 

3. Continuous Improvement and Innovation 

    An assessment of continuous improvement and innovation measures the extent of collaboration and joint investment into innovation and how much focus and resource supports the goal of obtaining competitive advantage. Is there a culture of continuous improvement? Do the teams proactively seek to identify and address potential issues before they impact service delivery and performance? 
    Healthy outsourcing partnerships have a long-term vision for the relationship that is developed collectively and rewards performance of both parties. When both parties are equally invested in success, a common culture with high levels of trust begins to form. Stakeholders are respected and viewed as critical at all levels of the organization, promoting a spirit of excellence and a desire for joint problem solving. A relationship health assessment is the first step to achieving this excellence and creating a healthy partnership. Contact SIREAS today for more information.