As a business owner or professional, you may have heard the terms “agreements” and “expectations” thrown around in conversations with colleagues and clients. These two concepts are crucial in any business setting, as they define the parameters of a working relationship. In his book “The Hands-Off Manager,” Steve Chandler breaks down the differences between agreements and expectations and explains why understanding both is essential for success.

Agreements are formal contracts or written agreements that define the terms of a working relationship. They are legally binding and outline the responsibilities of both parties. Agreements are typically used in more formal settings, such as the hiring of employees or a partnership between two companies. Agreements are detailed and specific, leaving little room for ambiguity or misinterpretation. They provide a clear understanding of what is expected of each party and what consequences may occur if those expectations are not met.

Expectations, on the other hand, are informal understandings that are often unspoken. Expectations are the assumptions we make about how others will behave or perform in a given situation. Expectations are based on personal beliefs and experiences, and they can vary greatly from person to person. Expectations can be useful in setting goals or establishing a vision for a project, but they can also lead to disappointment and frustration if they are not communicated clearly.

Chandler argues that businesses need both agreements and expectations to be successful. Agreements provide a framework for the working relationship, while expectations provide motivation and direction. However, he warns against relying too heavily on expectations, as they can lead to misunderstandings and conflict. Instead, he advocates for clear communication and setting realistic expectations based on agreed-upon goals and objectives.

In practice, this means taking the time to outline the terms of a working relationship in a formal agreement and communicating expectations clearly and regularly. It also means being willing to renegotiate agreements and expectations as circumstances change. By doing so, businesses can build trust and maintain strong working relationships with clients, employees, and partners.

In conclusion, understanding the differences between agreements and expectations is crucial for any business looking to succeed. While agreements provide a formal framework for the working relationship, expectations provide motivation and direction. By balancing both and communicating them clearly, businesses can build strong, sustainable relationships with those they work with.