It is one of the most popular games between client and contractor when things get tight. Suddenly, one side no longer seems to be able to remember agreements or regulations. Contact persons were either not personally involved or hear about it for the first time.

If you can then casually reply with "Looks like your signature! What do you think?", things suddenly move on very quickly. It is not a sign of mistrust to put things in writing. It helps both sides to remember it later.

Always record agreements and regulations in writing and ensure two signatures under important documents: client and contractor.

What sounded like a simple path turned out to be a fiasco. A medium-sized company could not get its internal fleet management under control. Nearly every person successfully claimed special treatment for themselves; the common understanding of the chosen path tended towards zero.

As a way out, the fleet management was outsourced to a specialised service provider. The latter was to be remunerated on the basis of user satisfaction, compliance with the specifications and the correctness of the accounts, among other things.

The service provider had no chance, because the internal acceptance for the rules of the company in terms of vehicles, equipment, scope of service, fuel cards and communication was simply not present. So every authorised person fulfilled their wishes and led the complete fleet management ad absurdum.

Internal project management and marketing did not exist. The project flopped.

A bonus/penalty system does not solve internal problems. Get competent help for this.

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Good cop and bad cop are not only successful pairings in films. In the context of cooperation with service providers, such a duo is also sometimes useful. It sharpens targets and cleans up some critical situations. In our practical seminars for service providers, we repeatedly experience that actors shy away from the role of the evil contact and critical words.

The reasons for this are often something like this:

• I want to work with the partner in confidence tomorrow.
• That doesn't suit me.
• I'm uncomfortable with that.
• Conflicts aren't my thing.

That's fine. If you need to find words that are critical and clear as part of a collaboration, add more players.

For example, ask a person from your purchasing department to attend meetings as a "bad guy". This is how you achieve your goals and act as you like.

A bonus/malus system always requires the balancing of relationships.

Use "good guy - bad guy" skilfully for yourself.

Performance-orientated remuneration is of no use if the outsourcer is dependent on its service provider.

For example:

A medium-sized company commissions an IT service provider to operate its server. Systems fail repeatedly. The service does not reach the agreed level. So the client wants to apply the contractual penalty.

The contractor's answer: Then it doesn't pay. We are cancelling the contract. Of course, everyone knows that now nothing would work for the client. In fact, the service provider extorts the bonus. Whether good or bad performance is no longer important.

Conversely, smart companies avoid dependencies. If the client takes up too large a share of the service provider's volume, a bonus/penalty system no longer works properly. A repeated penalty may lead directly to the contractor's insolvency. That doesn't help either side.

Forward-looking companies examine risks and dependencies before awarding contracts. Then the performance-orientated remuneration also works.

If the contractor does its job very well, it will receive a bonus. You as the client benefit because customers are more satisfied, processes more efficient, inputs more correct, etc. Money flows as a bonus, everything is in balance. That's it.

Really? Unfortunately, companies often do without the most effective means in this context. How good it feels to be praised! Many people underestimate the motivation that comes from a simple "You did very well".

Smart vendor managers (service provider managers) increase the effectiveness of their bonus/penalty systems. They celebrate successes and give praise.