I think Manuel “Matty” Moroun, the billionaire owner of Detroit’s Ambassador Bridge, might be wishing that he used the Vested approach for his Detroit bridge as he was sentenced to jail time for missing deadlines on a construction project. The Moroun case involves a dispute between Michigan’s Department of Transportation and the Detroit International Bridge [...]
Adjusting to the Vested Outsourcing business model requires a major change in thinking and approach to total costs, pricing and value in the outsource relationship. Moving away from the conventional and quick-fix focus on price to a shared value and collaborative mind-set that might even involve leaving money on the table is a difficult concept [...]
When is executive compensation enough? When do executive salaries and bonuses actually hurt the best of interests of a company? Given the history of compensation over the several decades, the answer from the executive suite would of course be “Never!” But another view is emerging, as highlighted by Vivek Wadhwa in a viewpoint column last [...]
As the song goes, UPS loves logistics. And this time of year, UPSers have to really love their job. So many packages; they work extended hours seven days a week to make it happen. Warehouses add seasonal workers. Stores open early and close late. Moms are frazzled just trying to manage. Hey, it’s Christmas! And [...]
An old saying goes, “Money talks, nobody walks.” In the case of the St. Anthony Falls Bridge rebuild project in Minneapolis, the saying could go something like, “Incentives drive performance, everybody soon resumes driving.” The Minnesota bridge project case is a powerful example showing that a collaborative, innovative—and incentivized!—approach to solving difficult problems will most [...]
The old saying, “If I didn’t have bad luck, I wouldn’t have any luck at all,” could easily apply to outsourcing incentives: If there weren’t any perverse incentives in a contract, there likely wouldn’t be any incentives at all! Incentives play a critical role in in Vested Outsourcing, namely in identifying and achieving the win-win [...]
My Contract Management magazine arrived recently with even more evidence that a vested, collaborative approach to managing difficult contracts – or solving difficult problems – results in success on a huge scale. Most of us grew up hearing about the controversies surrounding the Rocky Flats Plant near Denver, a U.S. nuclear weapons production facility that operated [...]
It’s really great to see corporate executives singing the praises of Vested Outsourcing for it’s transformational impact on how companies approach outsourcing. A recent post on Brown’s Compass Online website from Brad Mitchell, the UPS president of distribution and logistics, proclaims Vested Outsourcing is one of the Top 5 trends in logistics. Mitchell sings the vested [...]
The fourth hallmark of a Vested Outsourcing partnership is a properly structured price model that incorporates incentives for the best cost and service trade-off.
