Change management describes the procedures for adopting and implementing agreed changes.
A priori, no change is agreed upon in advance. All changes require good faith negotiation and discussions. Once adopted, the changes are recorded in a log book and become the new procedures.
Changes typically impact pricing. Where the change reflects simply an increase or decrease in the volume of transactions, that change might already form part of the pricing methodology. Where the change involves additional services, a different type of service, abandonment of a service or a mandatory manner of performing services, the re-pricing discussion could be based on costs, market rates or some mixture.
Irreconcilable differences can arise. If the enterprise customer wants to make major changes that would disrupt the service provider’s infrastructure or personnel, friction will be predictable. In cases of serious friction, the governance procedure for escalating matters of “business decision” to senior executives rapidly can save the relationship. In general, few disputes about change orders reach crisis proportions, much less litigation. However, litigation can arise if the original contract lacked appropriate specifications or there were misrepresentations about the customer’s needs or the service providers’ ability to deliver.