One thing that struck me immediately was the contention that service providers should not be regarded as simply a way to lower costs but as partners in innovation. Amen to that! One of the most frustrating aspects of this business is the amount of potential benefit we end up leaving on the table because we can't get our clients to look past their annual operating budget and to the bigger picture.

For 2008, I'm focused on creating success by designing the right model. When a company outsources its corporate real estate simply to reduce costs or to reduce headcount, the end has essentially been achieved. Both goals are fairly demonstrable and relatively short-term focused. The client will typically achieve savings (what I call "low-hanging fruit" savings) and will usually streamline staffing. However, once these are satisfied, the sentiment usually is: what's next? In the context of the typical design of outsourcing contracts, there is no "next"--like my car's annoying navigation system says, "you have arrived at your destination."

A better design is created when the service provider has a deep enough understanding of your business to know the strategic drivers that govern it as well as the areas where management is undecided and open to more dialog. Most service providers will learn enough to know about your business but without a different model most won't get far enough immersed to tell you where the business is going, why and what might be done to mitigate risks.