Silo setup versus holistic expectations

grayscale photography of two silo on grass
Photo by Deneen LT on Pexels.com

In a multi-product or services contract products or services are normally priced individually. But the client’s expectation could be that the products or services are implemented and supported holistically as one solution.

This expectation of holistic implementation and support adds more costs and complexity to the provider and therefore the contract is probably sold at a loss. This is because providers are normally set up in silos, one department per product or service, with little experience or possibly even the capability (or reward structure) to work across the silos. So if a client has the expectation that a holistic approach is to be provided then this must be reflected in the contract pricing and in the providers structure and culture.

 

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