Rule #5: A Governance Structure That Provides Insight, Not Merely Oversight

  • Kate Vitasek
  • Jacqui Crawford
  • Jeanette Nyden
  • Katherine Kawamoto


Governance is the last Vested Outsourcing rule, but it is perhaps the most important. A sound governance structure provides consistent management along with cohesive policies, processes, and decision rights that enable parties to work together effectively and collaboratively. A governance framework enables the parties to manage performance and achieve transformational results throughout the life of the agreement.


Service Provider Governance Structure Desired Outcome Governance Framework Governance Committee 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 2.
    Ian R. Macneil, Contracts: Instruments for Social Cooperation (South Hackensack, NJ: F. B. Rothman, 1968).Google Scholar
  2. 4.
    Oliver E. Williamson, “Outsourcing: Transaction Cost Economics and Supply Chain Management,” Journal of Supply Chain Management 44, no. 2 (2008): 5–16.CrossRefGoogle Scholar
  3. 6.
    Florian Moslein and Karl Riesenhuber, “Contract Governance—A Draft Research Agenda,” European Review of Contract Law 5 (2009).Google Scholar
  4. 7.
    Oliver E. Williamson, “The Theory of the Firm as Governance Structure: From Choice to Contract,” Journal of Economic Perspectives 16, no. 3 (2002): 171–195.CrossRefGoogle Scholar
  5. 11.
    Adrian Gonzalez, “Insights from Performance-based Outsourcing Think-Tanks at ARC World Forum.” ARC Insights, Insight # 2010–21E. April 29, 2010.Google Scholar
  6. 15.
    Roger L. Martin, The Design of Business: Why Design Thinking Is the Next Competitive Advantage (Boston: Harvard Business Publishing, 2009).Google Scholar
  7. 16.
    Chris Owens and Michele Flynn, “Locking in the Benefits of Outsourcing: Innovation, Cost Reduction, and Continuous Improvement at Microsoft,” Leader (September 2005): 2–5.Google Scholar
  8. 19.
    James P. Groton, “The Standing Neutral: A ‘Real Time’ Resolution Procedure That Also Can Prevent Disputes,” International Institute for Conflict Prevention and Resolution 27, no. 11 (December 2009).Google Scholar
  9. 20.
    Robert Solow, “Technical Change and the Aggregate Production Function,” Review of Economics and Statistics 39 (1957): 312–320.CrossRefGoogle Scholar
  10. 21.
    Cynthia Barton Rabe, The Innovation Killer (New York: Amacon, 2006).Google Scholar
  11. 22.
    A. G Lafley and Ram Charan, The Game Changer (New York: Crown Business, 2008).Google Scholar

Copyright information

© Kate Vitasek, Jacqui Crawford, Jeanette Nyden, and Kathrine Kawamoto 2011

Authors and Affiliations

  • Kate Vitasek
  • Jacqui Crawford
  • Jeanette Nyden
  • Katherine Kawamoto

There are no affiliations available

Personalised recommendations