We have observed that our most successful clients’ supply chain professionals have regular crucial conversations with their customers about reducing their supply chain expenses. For instance, one of our client’s supply chain managers, who has saved millions of dollars for his healthcare system, meets individually with his department heads and managers on a quarterly basis to review utilization misalignments (i.e., wasteful and inefficient consumption, misuse, misapplication, and value mismatches) in their supply streams. This best practice makes it a routine event for his customers so it doesn’t surprise them and then makes it a rapport building occurrence.
To follow up on this same theme, here are seven keys to having crucial conversations with your customers about saving money, taken from Kerry Paterson, Joseph Grenny, Ron McMillan, and Al Swizer’s latest book called Crucial Conversations: Tools for Talking When Stakes Are High:
- Start with Heart: Decide what you really want. What’s at stake? What are your goals?
- Learn to Look: Is the conversation going in the right direction? If not, steer the other party back to a positive dialogue.
- Make It Safe: Like our example above, make the dialogue safe, natural, and routine.
- Master Your Story: Get your facts right, show graphics and charts, and be ready to be challenged.
- State Your Path: Let your customer know how you came to the conclusions you did (i.e., review of their utilization data), not just what the conclusions are.
- Explore the Other Person’s Path: Find out what your customer is thinking. Make sure you understand each other, and then look for areas of agreement.
- Move To Action: Agree on how to more forward, and then do what it takes to get there.
From my perspective, nothing happens that is important without a crucial conversation to get everyone involved and on the same page. This too should be your goal; have ongoing sessions with your departments and managers to review their supply chain expenses. Even meet with departments that are doing an excellent job with their supply chain expenses, since they also need to know where they stand. With this guide, it is our hope that you too will move toward clearer communications with your department heads and managers when the stakes are high.