TRANSFORMING A BACK - A T F G tiv re of hu B pr tio of 1 J OFFICE FUNCTION : LESSONS FROM BAE SYSTEMS ' EXPERIENCE WITH AN ENTERPRISE PARTNERSHIP 1

Historically, senior executives have taken four approaches to transformation: do-ityourself, management consultants, fee-for-service outsourcing, and even the occasional joint venture. While these approaches remain viable for various contexts, a new one has emerged that warrants attention: the enterprise partnership, where a customer and supplier create a jointly owned enterprise that both services the customer investor as well as seeks external customers. However, this is not a traditional joint venture with equally shared risks and rewards. Rather, the supplier bears more risk and the primary purpose of the enterprise is to service the customer investor. The enterprise partnership addresses the lack of alignment in fee-for-service outsourcing while minimizing the customer risks of a joint venture.