Breaking up is hard to do! A decision to exit can be due to a level of dissatisfaction with the supplier, change in company strategy, by mutual agreement, or a decision to bring the service back in-house. Whatever the reason, here are a couple of practical things we recommend to our clients:
Be clear of your reasons and objectives
Understanding from the outset why you are cancelling the contract and what you want to achieve as a result of the action is useful to have as a barometer for the progress and success of the process.
Put time into planning
Spending time planning your exit can reap significant rewards. It is not uncommon for clients intending to conduct an exit underestimate the planning and time it takes to execute. Preparation is vital to affect an orderly exit.
In planning for the exit, we advise our customers to take into consideration:
- The process of negotiating (see here on how Retonomy helps in negotiations)
- The operational change
- The onboarding of the new supplier
- How much it is going to cost (any exit penalties, the operational cost of the change and any professional fees)
Once you have a clear plan, you can rest assured that all aspects will be negotiated and agreed. A well planned and executed service handover is critical to reducing the pressure on your business at a very stressful time.
Maintain the relationship
Regardless of the reason, our advice is to have a thorough and professional approach to the exit. It is important to recognise that, while close working will have fostered personal relationships and sometimes friendships, leaving your supplier is still a business transaction. Taking a forensic and practical approach will put you in the best possible position for the exit. While not always possible, it is essential to try to part amicably to preserve the reputation of the parties.
In taking this approach, we have seen customers achieve a more significant benefit than expected, receive more co-operation from the outgoing supplier, and complete the exit quicker.
Contact Retonomy to understand how we can help.