Customer is King
Rethinking Superiority in Customer-Vendor Relationships
The Customer-Vendor Dynamic
As project managers, we often find ourselves in dual roles: both as customers and vendors. On one hand, we provide services, and on the other, we procure them. Common wisdom tells us that a “customer is god” or a “customer is king.” These phrases imply a sense of superiority of the customer over the vendor, creating an inherent imbalance in the customer-vendor relationship.
In 2013, I had an insightful discussion with a few Indian Administrative Service (IAS) officers in Dehradun about managing government projects. I was curious about the project management practices adopted by administrators, the training they receive, and how effectively they apply these principles in real-world scenarios. During our two-hour meeting, the officers shared their perspective on handling multiple vendors and stakeholders, which is a significant challenge in government projects.
Their approach, as they described, was straightforward: “We are the customer, and the service or product supplier is our vendor. To manage the project successfully, we should draft contracts in our favor. If things don’t go according to the contract, we remind the vendors, and if necessary, we take legal action. As government officials, we hold the upper hand because we are the customer, and we are backed by the power of the government. We can take these vendors to court and ensure compliance.” They emphasized their knowledge of the Indian Penal Code (IPC) and the Code of Criminal Procedure (CrPC), which they could leverage to control the vendors.
While their confidence didn’t surprise me, their arrogance did. This attitude of superiority towards vendors is something I’ve encountered in corporate settings as well. It made me question why we hold onto this notion of the customer as a god or king, while seeing the vendor as merely a service provider who can be pressured or manipulated.
Even if we win a legal battle against a vendor, what do we truly gain? In my experience, resorting to litigation rarely yields positive outcomes in project management. The costs associated with time, money, scope, and quality are often too high. So, what should we do? Should we allow vendors to do as they please? Absolutely not. But we should manage our projects with the right attitude.
Redefining Roles: A New Perspective
Who is a customer? One who provides money. And a vendor? One who delivers products or services. Both parties are givers, engaged in an exchange where both sides negotiate to ensure they get fair value.
A: The value of the product or service received by the customer should match the price paid. Price is measurable, but value is felt.
B: The value of the money received by the vendor should equal the cost of the product plus a reasonable profit.
Thus, a customer is someone who offers something of value (currency), and a vendor is someone who provides multiple offerings (products or services) in exchange. How, then, can one be superior to the other?
In India, the term Devata is sometimes preferred over god. The word Devata comes from the Sanskrit root “Dru,” meaning “to give.” A Devata fulfills desires through giving, but only when approached with respect and devotion. Here, humans (customers) offer devotion (money or respect) to the Devata (vendor), who then provides for their needs. This illustrates a mutual dependency: both the customer and the vendor are givers, and neither is inherently superior.
By adopting this Human-Devata analogy, we can foster healthier relationships. If customers see themselves as humans and their vendors as Devatas, many conflicts can be avoided.
The Path to Mutual Respect
Why do I believe this shift in mindset could solve many problems? Although I lack hard research, my belief is rooted in observing human behavior. In the human-Devata relationship, there is less dissatisfaction because it is grounded in faith and mutual respect. In contrast, the customer-vendor relationship often suffers from distrust and dissatisfaction. By promoting an attitude of mutual respect, we can create a more positive and productive project environment.
Just as there are various Devatas who cater to different desires, there are different vendors who provide different services. The key to sustaining these relationships lies in Shraddha (faith) and mutual respect. Without these elements, the customer-vendor relationship is unlikely to thrive.
Conclusion
Instead of adopting a defensive or aggressive stance through contract negotiations, we should focus on developing processes and practices that foster mutual respect. In today’s transparent and connected world, customers and vendors are well-informed about each other. While this can lead to attempts at outsmarting one another, true harmony and healthy relationships come from respect, not manipulation. This is a question every project manager should ponder, regardless of which side they represent.