The key to a good business relationship is being clear and detailed up front - this includes when asking for a proposal or hiring an employee. Any business relationship can benefit from clarity and details.

Many business relationships are put in place with little planning or little conversation. A good relationship takes a little up front work from both sides. It is not merely the business has a job that needs to be done and the vendor/consultant has the skills or products to fulfill that need. A business relationship that is not well defined up front can lead to many problems as time goes on.

Amazingly too many businesses set out to look for a consultant or a vendor with little or no real thought into the details of the project.

A great working relationship needs to have three basic items.

1. Objectives:

What are the objectives of the project? What do you want this consultant or vendor to accomplish? You decide that you want to understand how the company has grown to its current size and what is needed to grow to the next level. You decide that current staffing does not allow for this to be done in house and you want a fresh set of eyes so you decide to hire a strategic management consultant.

The objective is appears fairly obvious. But then again, it may not be. Is the owner looking for a simple overview report that gives some basic guidelines and direction or are they looking for specifics like how much money it will take to grow the company, what types of staffing levels and expertise are needed, will additional technology be needed, new products that can be added, additional third parties that can be brought in to assist or a multitude of other items.

Ultimately, a business needs to take the time to outline their objectives and make them as clear and even specific as possible. The objectives should be refined as conversations and negotiations with the vendor/consultant take place to put them into a realistic perspective.

2. Expectations:

Expectations are the next most important element. Now that we understand the clear objectives of management, the next is to understand their expectations. This starts to get into the deliverables. These expectations are for both parties. This includes when things are to be accomplished, if this is to be on-site or not, payment schedules, key dates, confidentiality, and other important items that both sides expect of the other.

Expectations can also be utilized in the contract negotiations for bonuses and penalties. If the management report is expected by a certain date, it can be written in the contract that bonuses will be given if it is completed early or penalties for late reports. California started utilizing this system for private contractors for road repairs. Setting clear expectations also makes certain that misunderstands are less likely.

3. Responsibilities:

Once management and the vendor are clear about the objectives and the expectations, now both parties must agree on the responsibilities. This is pretty clear because of the roles each plays. For example, lets look at a management consultant hired to help management understand why the company is not growing as fast as its competitors. The responsibilities of management includes granting access to all staff, needed books and records, being truthful and honest, and important third parties. It may also include office space or use of a computer. The responsibilities of the consultant includes setting up meetings with staff in advance, confidentiality, professional attire while in the office, and not representing themselves as a employee of the firm.

Both Parties:

Although many of these seem obvious, the more that can be outlined the better. With these items, a vendor or consultant understands what you are trying to accomplish, how you want it accomplished, and what he or she is responsible to do. Management also understands what the consultant or vendor can accomplish and if the objectives of the firm need to be altered because some of their objectives or expectations were unrealistic.

Objectives, expectations and responsibilities detailing as much as possible all of this allows for a better relationship, a better contract, and a better proposal. Although it is the responsibility of management to start the process and be as clear and detailed as possible in the beginning, it takes both parties working together, to put a realistic scope of services and relationship in place.