When you begin a sourcing relationship, you are making a long-term commitment to work with a provider as a team. Like any relationship, there are steps to take and practices to adopt in order to keep it strong. This holds true whether you’re engaging a provider for business process management or digital transformation.
To help you exceed business goals and deliver an exceptional insurance experience with your next sourcing relationship, here are four key elements of a healthy and productive sourcing relationship.
1. Set Clear Expectations for Communication
Both planned and unplanned communications are key to successful sourcing relationships. Let’s dig into best practices for each.
Planned communication, such as a scheduled meeting, bring stability to the relationship and a cadence to the business. Unplanned communication, like an unscheduled phone call, allows for unexpected issues to be communicated before the next meeting or status report.
Communication should be carried out using multiple channels, not just through email. Instead, you try scheduling phone calls and video sessions, as some people communicate more effectively in different formats. Video provides the added benefit of visual cues and can build a rapport with your provider, even if they are in a different state or country. Keep this channel of communication open, even if there isn’t anything of note to relay, and when you do, keep in mind the seven C’s of communication: consideration, clarity, concreteness, completeness, conciseness, correctness, and courtesy.
2. Establish Trust With Transparency
Both sides of the relationship have to trust each other. That means more than just telling the truth. Don’t mask the truth or hide anything, be transparent. Do what you say you will, when you say you will. Show genuine concern, and help the other party even when it doesn’t benefit you. Be consistent in these behaviors. Trust is not given instantly, you have to earn it and maintain it. Communicate that you expect the same from the provider.
Keep in mind the idea of communicating even when it may not seem necessary. For instance, if a change, or proposed change in your insurance organization has the potential to affect your partner’s business later down the line, letting them know could better prepare them and encourage them to be more collaborative.
3. Align Your Purpose
Team members within both organizations should understand how the sourcing relationship fits into the overall goals of your insurance organization. Most importantly, they should understand what value the relationship brings to each organization. If they understand how these goals are aligned with the broader company mission, vision, and values, they will be able to make better decisions. You should share your organizational goals, including major initiatives, annually with your team. Test alignment in the interim, and refresh alignment goals and messaging periodically.
4. Agree on Targets and Measurement
Your sourcing relationship exists to reach specific goals and outcomes. Your desired targets need to be defined, and you need to agree on how to measure success so that you are measuring the same things the same way. Review data together, and if one party misses the target, ask “Why?” with true curiosity.
As the client, it is up to you to define your needs and desired outcomes. Your service provider needs to represent their capabilities honestly. Together, you can create a truly differentiated insurance experience.
Want to learn how ReSource Pro can help your insurance organization tackle its biggest challenges? Let’s talk.
