Way back in 1996, I was functioning the capacity of Vice President of Integrated Service for a large hospitality company – a position designed to grow new service offerings for hospitals.

In a meeting with the COO, one of our premier clients, he said to me, "Ed I can no longer afford to work in a "management fee-for-service" arrangement. I need a partner that I can't live without and makes me and my organization better for the long term."

My first reaction was fear.  Was he warning me that our professional relationship was coming to an end?  He went on to tell me about a “partnership” that he is engaged in with a well know medical equipment and equipment service provider.  He talked about mutual investment and getting in the harness together.  He talked about courage, alignment, and trust. 

This is a person I considered an inspirational and visionary leader. When I was an operations account manager, he was my client.  We enjoyed many dinners together, coffee breaks, rounds of golf and heady conversations about business.  I loved serving him and his health system. He remains a friend today.

As I sat across his work table from him in his office (he never allowed himself to be distracted, he always got up from behind his desk for discussions) I listened intently.  He always offered insights that stimulated my thinking.  My fear began to subside, and I realized this was not a warning - rather it was an invitation and a challenge to open my mind and make a paradigm shift.  In hindsight it was a gift. 

The Integrated Service program I was responsible for growing required that I find clients with a certain kind of mindset.  The mindset of a forward-thinking, visionary leader.  The mindset of mutuality.  Exactly what this man was about.  The picture he painted for me of his vision was high level and even incomplete.  This was perfect because much of the Integrated Service program required intense collaboration.  It required a mutual commitment to invest time to build it together. 

As we came to the end of our time together, he agreed to meet with me again the following week to discuss the challenge he presented in more detail.  I came away invigorated and a bit impatient for our next meeting. 

The meeting date came, and I was prepared.  I had sent an agenda out a few days prior to the meeting.  By design, it was high level but allowed room to get down into the weeds if we needed to.  It was in this meeting I spoke to him about my company’s vision for a total paradigm shift in managing support services in a healthcare setting. 

The Integrated Service program broke down 10 functional departments and reconstructed them into 3 work teams.  It streamlined workflow into like-types for efficiency.  It established an environment where open communication ruled supreme over functional silos.

Layered on top of this, this integration also cut across 3 individual healthcare facilities that functioned independently.  It was a beautiful thing, and he became excited as we discussed the incredible potential of this for the employees of both our companies and our organization's overall.  We agreed to get to work the following week.  The effort would require many members from both our teams.

Fast forward 9 months later, after countless hours of collaborative design over evening pizza and soda dinners in a large conference room with Post-it pads hanging on all four walls  – we were ready to launch. 

I’ll never forget the day the agreement was signed.  The Vice President of Human Resources at the health system had never bought into the concept.  In his mind, too much control was being turned over to an "outsider". He struggled to see how the employees were going to benefit both personally and professionally with cross-training opportunities, and career advancement potential. Not to mention be happier in their jobs.

I was with the COO when he entered the administrative office suite to deliver the contract in for the CEO to sign.  The VP of HR decided to voice one more strong objection and challenged the co-architect of our the partnership with objections. The COO responded by simply asking the VP of HR, “do you have a way to improve the care of our patients, the lives of our employees, and save over $1 million dollars at the same time? If not, please excuse me."

That was the end of the objections and the partnership agreement was signed and sealed.

Yes, partners still must execute formal legal documents.  But this one was different.  Like real partners, we were sharing forecasted savings 50/50 – which were even more than $2 million dollars annually.  TIn 1997, this was significant.

What was unique about this you might ask?  It meant our company would only get paid for the actual direct expenses incurred, including a percentage direct overhead expenses. Any profit was not earned until actual savings were realized as outlined in the co-written budget – which by the way was an Appendix to the contract document. 

The Governance Board for Integrated Service, including executive members from each of our organizations, would have to concur that the savings were real, which was outlined in our Partnership Charter. 

This unique effort took us to new heights.  Together, as the market changed, we implemented multiple initiatives to improve our Integrated Service program and the outcomes it provided to the health system.  Together we expanded to include other silo departments as well cutting-edge innovations.  From robots that collect trash to employee concierge programs to name a few.  In this relationship, 1+1 equaled a lot more than 2. 

Partnerships last a long time, where "vendorships" typically do not.  This partnership endured another twenty-four years before the health system was purchased, and Integrated Service was dismantled.  They couldn’t catch the vision for something they had difficulty understanding.  It also did not align with their traditional silo departments.  I remember hearing them say “Integrated Service did not fit with their accounting programs”.  I knew at this moment; they would never “get” what we were doing. 

Anyone can say the word “partnership”.  It sounds good and resonates with most business people. And this is unfortunate because the opportunities to do better are abundant. 

Let me ask you a question. Do you have what it takes to be a partner? 

ABOUT THE AUTHOR

ED SNOWDEN

Strategic Business Consultant

Sales Growth and Client Retention

Ed has over 45 years of progressive growth in leadership responsibility at two Fortune 500 management services and hospitality companies: ServiceMaster and Aramark.

At both organizations he was regularly promoted based on his performance and was awarded several awards in both sales and operational roles. He has extensive experience in a multitude of business capacities including strategic account management, sales, and growth leadership.

As Vice President of Operations, Ed provided leadership for a hospitality team of over 500 people and an operating budget of over $60MM which he successfully renewed for five years.

As Vice President of Strategic Partnerships, Ed was responsible for cultivating professional relationships for the company’s largest healthcare clients in North America valued at over $350MM annually. In that role he also assisted in the writing of a living Strategic Account Management Playbook.

As an affiliate consultant for 4xi Consulting, Ed co-authored the TRUE NORTH© Strategic Learning Academy centered on creating a new mindset for developing and retaining the best business partners, winning better, retaining better business.