When most people think of collaborative BPO governance, they think of governance structures, such as joint operating, management and executive committees. While our research confirms that these governance structures are important, they are pervasive practices present in all substantially-sized BPO relationships. Governance structures are thus a “hygiene” factor, because the absence of such structures may result in poor performance, but the presence of collaborative governance structures does not in itself necessarily lead to high performance. In practice, if not designed correctly, they can inhibit, rather than enable, high performance.
In the high-performance BPO relationships that we studied, collaborative BPO governance is much more than a set of committees; it also comprises embedded partnership attitudes and behaviors. Collaborative BPO governance begins with an attitude we call the “partnership view” in which a client regards the provider as a strategic partner rather than as an opportunistic vendor.
The partnership view manifests itself in partnership behaviors—such as resolving conflicts fairly and protecting both parties’ commercial interests—that result in high BPO performance from both client and provider perspectives. High performance, in turn, reinforces partnership attitudes and behaviors, preparing the ground for the next crucial interaction.