How do you balance the shared risk and reward of IPD with your own organizational goals and interests?

2 Choose your partners wisely

IPD requires a high degree of trust and compatibility among the project partners. You need to select partners who share your vision, values, and commitment to the project. You also need to evaluate their capabilities, experience, and reputation in the industry. Look for partners who have a track record of successful collaboration, innovation, and problem-solving. Avoid partners who have a history of litigation, adversarial relationships, or poor quality.

3 Negotiate a fair and flexible contract

IPD contracts are different from traditional contracts in that they emphasize collaboration, integration, and alignment over control, liability, and compensation. IPD contracts typically include a shared risk-reward pool, a target cost, an incentive structure, and a dispute resolution mechanism. You need to negotiate a contract that reflects your contribution, value, and risk to the project. You also need to ensure that the contract allows for flexibility, adaptability, and learning throughout the project lifecycle.

4 Communicate and collaborate effectively

IPD relies on frequent and transparent communication and collaboration among the project partners. You need to establish and maintain effective communication channels, tools, and protocols for the project. You also need to participate actively and constructively in the IPD team meetings, workshops, and decision-making processes. You need to share your knowledge, expertise, and feedback with the other partners. You need to listen to their perspectives, concerns, and suggestions. You need to respect and support their roles, responsibilities, and interests.

5 Monitor and evaluate your performance

IPD requires constant monitoring and evaluation of your performance and the project outcomes. You need to track and report your progress, costs, quality, and risks to the IPD team. You also need to review and adjust your plans, processes, and practices based on the feedback, data, and lessons learned from the project. You need to celebrate your achievements and recognize your challenges. You need to learn from your successes and failures.

6 Balance your interests and the project's best interest

IPD requires you to balance your own interests and the project's best interest. You need to recognize that your success is tied to the success of the project and the other partners. You also need to acknowledge that sometimes you may have to compromise or sacrifice some of your interests for the sake of the project. You need to be willing to share your risks and rewards with the other partners. You also need to be open to new ideas, opportunities, and solutions that may benefit the project.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?