For Bird this was critical.  ‘Consultancies cannot reduce their costs below a certain point, nor can they push up the benefits beyond a certain level.  So they have to focus on reducing risk.’

Having introduced consultancies to the Standish theory, IBM could then show how it can help them to manage and reduce risk.

This involved giving consultancies, and their clients, access to IBM resources that were previously only for the use of IBM and its customers. For instance, IBM has proof-of-concept laboratories where the consultancies can show clients that proposed solutions really do work.

IBM also has an e-transaction processing laboratory, which can simulate the impact of very large amounts of web traffic. For example, what happens to the website if the number of people accessing it triples? 

IBM also started working with the consultancies on new financing packages that they could offer to their clients.

“Simply showing consultancies an IBM organisation chart was extremely useful.”

Bird says that some simple diagrams also helped to clarify how and where companies could work together.  For instance, IBM mapped its competence against the consultancy in areas ranging from strategy consultancy down to platform implementation.

‘This enables us to see easily and quickly where our strengths can best supplement their skills.’

Finally, Bird says that simply showing consultancies an IBM organisation chart was extremely useful. ‘Often, they saw IBM, thanks to our Global Services arm, as a direct competitor.

‘The organisation chart was able to show them where Global Services really fitted in, and highlighted all the other IBM units they could be working with.  One assumes that the outside world understands one’s own structure.  Believe me, it doesn’t!’

Our Analysis:  The case study from IBM doesn’t really flow directly from trust theory. But it does show the value of thoroughly researching what your partners really want from you and taking a creative approach to how to deliver it.

Relatively few suppliers have the sort of assets IBM can deploy.  But then again, how many suppliers have bothered to find out what their partners really feel and what they really want?