Contracting: How to Improve Your Work Relationships

Have you ever found yourself several months into a new project — wishing that the expectations had been made clearer at the outset? Have you worked with someone and realized that you had different ideas of what “regular communication” would mean?

These situations are often caused by misaligned expectations and carry the potential for conflict and confusion. When new leaders begin in their roles, it’s important that they work to establish relationships with the employees they are leading. I strongly encourage the practice of contracting as a means of clearly establishing expectations and preferences at the outset of a working relationship.

What is contracting? Is it the same as writing a contract?

More commonly, we think of contracts as formal and legally binding agreements. Whether we’re buying a house or hiring a vendor, we carefully spell out the terms of contracts so that both sides are clear on those terms and we can avoid future disputes.

The process of contracting has some similarities to contracts but is more informal. Contracting is a matter of establishing a “partnership agreement”: a means of getting to know each other, establishing rapport and aligning on expectations together.

What does contracting look like?

Contracting involves two individuals openly and clearly discussing how they will work together. At a minimum, these expectations should be discussed; in many cases it’s even more helpful to write them down so they are available later.

During contracting, both the leader and the employee answer a series of questions together. Helpful contracting questions can include:
 

1. What are the expectations for this role?
2. What differences should emerge as a result of this role? In other words, what is the desired impact of this role?
3. What is the highest priority work right now?
4. What timeframe (days, hours) do we each work?
5. How do we each prefer to communicate?
6. How will we work together? What are our ground rules?
7. When and how will we give each other feedback?
8. What do we need from each other to do our best work?

Aligning on topics like this at the outset can establish norms and expectations. It also makes it easier — on both sides -— to check in along the way on how things are going.

Although the process can be done at any time, contracting is most effective when done at the beginning of a working relationship. It helps two individuals begin well: clearly communicating what each one needs from the relationship and how they’ll work together. Contracting can also be useful for individuals beginning new projects or teams who are starting out together. 

We might not be used to doing something formal like negotiating a partnership agreement when we start working with someone. But this initial investment of effort can save time later because we avoid conflicts and confusion. It can set the tone for the relationship and make it easier to renegotiate needs along the way.

References:

• Block, P. (2011.) Flawless Consulting: A guide to getting your expertise used, 3^rd Edition. Pfeifer.
• Maister, D. H., Green, C. H., & Galford, R. M. (2000). The trusted advisor. Free Press.