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Typically, these items are provided to the opposite party on a best-efforts basis The items proffered in a partnership are of relatively low cost to the partner providing them but can be of tremendous value to the other party This type of relationship will significantly increase the value of the contract without requiring arm s length contract addendums whose cost and difficulty of enforcement often destroys much of the potential value and usefulness The longer the relationship exists, the higher the potential benefits for both parties For the vendor, sales costs are virtually eliminated, and over time, the cost to serve generally declines due to experience effects, resulting in long-term gross margin improvement For the customer, the vendor s cost reductions are typically shared with the customer via pricing discounts, additional no-charge services, and higher service levels or speed.

Recent Developments Section 307 of the Sarbanes-Oxley Act of 2002 mandates that the Securities and Exchange Commission:

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The customer s cost to manage the vendor also declines, and learning curve costs from new vendor entrants are eliminated Finally, the customer benefits from a vendor whose staff understands the business in intimate detail and can provide customer-specific solutions An important benefit of participating in a close relationship with a vendor is the opportunity to inf luence the vendor s product or service development process This is particularly true for vendors that provide a critical product to a professional services firm, such as a software application for tracking projects and time provided to a business consulting firm or a candidate background screening process for a staffing services firm Successful vendors invest immense resources in developing their current and future products and services Many product vendors have an income stream emanating from maintenance contracts to devote to product enhancements and new features.

The concept of a formal mentoring program in a professional services firm has gained far more credence in the past 10 years than at any time prior. However, it is a mistake to believe that the concept of mentors in the professions is anything new. In decades past, the only way to enter into a profession was to attach yourself to a mentor, and read the law within a law office by serving as a clerk for a number of years until you were ready to take the bar exam. Ask any lawyer about his or her formative professional years, and you will hear the stories of the mentor, whether it was a friendly one or not. Professional services firms have taken the concept of mentoring and formalized it, thereby somewhat manufacturing what was previously an organic relationship. In years past, a mentor and a prot g found each other through a natural process the younger professionals would work on a project here and a project there and eventually find a senior person whom

What is shown in Figure 7.4 at the package level can also be applied at the project level. At this level, the three iterations are performed. The rst iteration is rapid, ensuring that all project participants and stakeholders develop a good understanding of the project. Some project management related activities are performed in this iteration, including creation of early use cases and use case diagrams, cost estimations based on the overall expected requirements of the project, and project planning including resources, prototyping and quality planning. Also, in the rst iteration, identi cation and documentation of the increments of package development take place. Thus, most of the activities in the rst iteration occur in the problem and background spaces.

By partnering closely with vendors and providing input to the prioritization process for new feature or capability development, the client firm can leverage vendor research and development (R&D) investment amounts far in excess of the amounts it could dedicate to internal development The client then steers the product direction to its ultimate benefit One software application vendor we worked with invited 25 key customers to their corporate headquarters twice a year for product development and.

Samuel A. DiPiazza, Jr., CEO, PricewaterhouseCoopers LLP, and Robert G. Eccles, president, Advisory Capital Partners, echo that observation:

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survey of the hundreds of companies engaged in nanoscale research reveals that there are large numbers of companies competing to develop similar technologies. For a variety of reasons, fragmentation might inhibit commercialization of nanotechnology. In this chapter, we explore strategies that enable coordination in research and development of nanotechnology. First, we argue that companies should consider pursuing mergers with other companies developing similar technologies. In certain circumstances, consolidation might eliminate destructive patent disputes, eradicate inefficient, duplicative research, and increase the likelihood of developing commercial products within a shorter time horizon. Second, even without consolidation, companies engaged in nanoscale research would benefit from standardization. Standards are currently needed for consistent characterization of nanomaterials and will be required for the future interoperability of devices and systems.

Do not place yourself at risk. If being threatened, get out of the situation and seek help if needed. Do not encourage venting of anger, which may encourage runaway anger. De-escalate the client with rational, quiet, disarming responses (model de-escalation). Do not touch the client. Teach the client skills to avoid runaway anger before he or she gets to that point, and have the client practice those skills under controlled conditions.

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