Abstract :
In the mid 1980¿s Toyota came to the US and showed Detroit how to work with suppliers on a win-win basis. In just five years, Toyota was the most trusted automaker among all automotive suppliers, had the lowest procurement costs, and the highest contribution of innovation from supplier companies. What does Toyota know about working with contracts that we can learn? For starters, they know that trust lies in specific actions, not interpersonal relationships. They understand the ¿game¿ of contracting, and know how to structure relationships so both sides are motivated to contribute to the common good. There¿s much we can learn from Toyota about how to change the contracting game in software development for the benefit of both parties.
