The global consulting firm EY was looking to outsource the food services, cleaning services, and maintenance at its facilities to the provider Integrated Service Solutions (ISS). But the company wanted to do so in a way that was completely different from how it had approached outsourcing workplace services in the past. EY and ISS wanted to create an outsourcing agreement that was highly collaborative and beneficial for both parties.
To do so, they incorporated a standing neutral in the contracting process from the outset. Together the parties selected one standing neutral—Erik Linnarsson, a lawyer from Cirio Law Firm—as a deal facilitator. Linnarsson was trained as a certified deal architect (CDA) to craft complex outsourcing agreements.
Post contract signing, the parties continued to use a standing neutral, embedding Linnarsson into the outsourcing relationship’s ongoing governance. Linnarsson supported both mid- and higher-level governance forums. He also acted as both an expert coach and evaluator for issue resolution, providing advice as problems arose. If needed, Linnarsson had the authority to make formal, nonbinding recommendations. When Linnarsson decided to retire, EY, ISS, and Linnarsson ramped up one of Linnarsson’s colleagues, who now serves the role of standing neutral.
The parties also have tapped into their standing neutral for additional post-support services that are preventive in nature. These include ongoing performance management alignment and performance relationship health monitoring. For example, one role of the standing neutral is conducting an annual relationship health check, which includes measuring the level of trust and compatibility between the two partners.
The standing neutral also supports strategic reviews, including reviewing the contract for any misalignments. For example, when the parties initially created the agreement, they had decided to use a specific sustainability metric. However, since signing the contract, regulatory requirements around sustainability have become stricter. In addition, EY wanted to be a global leader in sustainability. As part of the proactive review, and with the help of the standing neutral, the parties worked together to revamp the metric.
Magnus Kuchler, EY’s markets leader and country managing partner for EY Sweden, believes that using a standing neutral has had a positive impact on the outsourcing relationship. “Simply having a trusting and credible standing neutral post-contract signing gives team members a sounding board that helps people make better decisions,” he said. “Using a standing neutral is truly a powerful tool to help contracting parties maintain a healthy relationship—which ultimately prevents costly disputes.”
