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After more than a decade of research, the business model behind some of the most successful outsourcing strategies (including those at Procter & Gamble, Microsoft, and more) has been identified.

Vested Outsourcing is catching on: From the government sector to the healthcare market, facilities management experts across all industries are increasingly shifting to Vested Outsourcing. Still, some companies aren't aware of or leveraging this game-changing technique. 

According to the study, even companies that outsourced the same service providers as Procter & Gamble, Microsoft, and McDonald’s aren't experiencing the same success. Wondering why? Standard outsourcing and the Vested Outsourcing business model are two entirely different methods. 

What is Vested Outsourcing? A business model that allows companies and service providers to develop win-win partnerships that align with the five rules of Vested Outsourcing contracts. 

Standard Outsourcing v. Vested Outsourcing: What's the Difference? 

Standard outsourcing: The success of each party individually takes priority and contracts are created with compromising, competitive, or accommodating negotiation styles. The common result is a win-lose partnership with short-term value. 

Vested Outsourcing: Both parties are concerned for each other's success and contracts are created with a collaborative negotiation style. The common result is a win-win partnership with long-term value.

The negotiation style matrix illustrates why the Vested Outsourcing business model is so successful. 

Vested Outsourcing and Negotiation Styles

 

To give you a better understanding of the prosperous partnerships at Procter & Gamble, Microsoft, McDonald’s, and more, we’re covering the five rules of the Vested Outsourcing business model. 

Rule #1: Concentrate on desired outcomes, not specific transactions

The success of a collaborative partnership is contingent on trust, transparency, and compatibility. By shifting the focus from buying transactions to buying outcomes, you can aim for targets like reliability, profit generation, employee satisfaction, and so on.   

Rule #2: Pursue trust, resist micromanagement 

With outcome-based partnerships, large varieties of service level agreements (SLAs) no longer exist. Problem solving is efficient thanks to the collaborative strengths of the buyer and outsourced service provider. The fruits of effective time management are nurtured through trusting relationships

Rule #3: Agree on unambiguous outcomes and metrics 

Both parties are on the same page about their expectations of a successful partnership. They spend time developing clear-cut definitions for how their desired outcomes are measured. A maximum of five high-level metrics is recommended. 

Rule #4: Make strategic investments that optimize the business

Service providers aren't guaranteed higher revenue with Vested Outsourcing. However, it still supplies them with adequate tools, autonomy, and authority to take calculated risks with lucrative, long-term value. 

Rule #5: Provide transparency and trust through an insightful governance structure

Avoid oversight with a credible and adaptable structure that communicates the development and improvement of operations. A symphonic structure enables all rules to work effectively in a business partnership. 

The Result: WIIFWE 

By shifting from the tradition of "what's in it for me" to a collaborative "what's in it for we" (WIIFWe) business model, both parties align their mindsets, economics, and governance structures. 

Following the rules of Vested Outsourcing is a task of its own, but creating a contracting around each of the elements is essential to the methodology's success. 

WIIFWe and Facility Maintenance Services 

If you want to achieve the strategic and tactical advantages of vested outsourcing, creating shared value for you and a qualified facility management provider is key. Stay informed on qualifications to keep in mind while evaluating facility maintenance companies. 

Depending on your needs, TD's Integrated Facilities Management (IFM) builds a permanent staff with the availability of around-the-clock shifts to match your business operations and schedule. Take advantage of our full business offerings including HVAC, electrical/lighting, plumbing, fire/life safety, central utility plant management, janitorial and landscaping services.

Not sure if your company would benefit from outsourcing facility maintenance services? Feel free to use the facility maintenance KPI e-book below to get a better idea of where your maintenance program stands. The more meaningful data you have, the better you can reduce financial and safety risks. 

Use the right KPIs to keep track of facility health. Read the e-book to learn more.