Yes yes, I know part 1 didn’t directly answer this question. But I will today! So let’s not waste time and dive into some of the reasons why people are so distrustful of service partners.

Unfortunately, much of the narrative in ExDev speaks to a track record of dishonesty.  Things like:
- Lack of communication around key changes, such as switching to less experienced “B teams” without notice.
- Overstating resource availability, including hiding or downplaying subcontracting.
- Falsifying credentials, such as exaggerating the studio’s role in past projects.

…and so on.

Sadly, these narratives exist for a reason. The strong incentives to win new business can often motivate unethical behavior.

However, in my experience, outright lying is very, very rare. Deliberate deception is the fastest way to permanently damage your reputation and leads to nothing but failed milestones and canceled payments.

Much of what people would consider 'dishonest behavior' instead falls within the nuances discussed in last week's post—undefined expectations and gray areas inherent in every new relationship. Considering the examples above:

- Did the client require the provider to give them notice of changes in personnel, or only ask for milestone dates and deliverables?
- Did the client ask about the studio's intended use of subcontractors, or make it clear that they were only interested in working with retained staff?
- Did the client ask specific questions about the provider’s work portfolio to understand the details of their involvement, or did they make assumptions based on flowery language in a sales deck?

Being incredibly clear and organized about your studio's expectations upfront and taking the time to validate these qualities in your service partner candidates are among the best ways to ensure trust.

This approach not only helps eliminate sources of misalignment, but it also makes you a more desirable client. After all, the most sought-after service partners are those who consistently have clients lining up at their door.

And because they’re in high demand, they can afford to be picky. They can choose to work only with organized clients who have clear expectations, allowing them to do their best work with confidence.

So, where do disorganized clients end up? You guessed it—the less in-demand  studios!

Since these service studios have less demand (you can see where this is going), their incentives to win your business—and consequently, to stretch the truth—are significantly stronger.

Now, layer on unclear requirements with tons of gray area, and you create a massive opportunity for a studio hungry for revenue to potentially cut some corners in order to boost their returns.

And we wonder why ExDev is growing so fast among AAAs with dedicated ExDev departments, but not so much with independents.  🤔

Out of space. Pt 3 will provide CDR's framework for evaluating partners and building trust.