Sorry, it's not commercially reasonable for us to care for your loved ones. When IT contracts fail.

Q: How closely have you reviewed your vendor agreements under the new standards?

Being social creatures, many of us work with people we like, usually over a good handshake. We want to begin a business relationship with expectations of a positive outcome. We intuitively value the spoken word over the written word except when...

A 24x7 health service was looking at an alternative IT Platform.

What we found in the agreements was a little disturbing: “The Vendor will use COMMERCIALLY REASONABLE EFFORTS to provide the services.”

The services included keeping the system up 24x7, all professional services to set up the system and any ongoing support.

My question was: What objective or measurable commitment has been made under the term “commercially reasonable efforts"? Agreements with vague performance obligations are like a get out of jail free card when things get too hard.

The problem is parties to contracts have different wants/desires and mental models on what success looks like.

Interestingly, the vendor had already signed up 45 other providers on the same terms.

If your team is relying on a 24x7 service - whose problem is it when something goes seriously wrong at 4am?

Who decides when something is not "commercially reasonable"?

It will be you who has a conversation with the family.

What will you say to them?

Thanks for reading to here and I hope life's great, Bruce

About Bruce Mullan

I am a Leadership Coach nurturing leadership excellence in health, aged care and NDIS. I integrate leadership strengths, agile disciplines and a coaching mindset to help leaders successfully navigate the growing complexity of our external world.