Category Archives: Decision making

#73 When vendor management turns messy

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Vendors are hired for many reasons. They provide a specialized skill, they help deal with business cycles, and outsourcing helps organizations focus on core, mission critical items.

Why do vendor engagements not work out the way they are supposed to? Here is a short list of things to check for:

  • Did either party misrepresent their capabilities? Both parties have to provide outputs for the other to be successful. Just because a vendor is hired does not mean a client has no work or responsibilities.
  • Did the scope change when no one was looking? This is the classic Camel’s nose problem. It starts as a small, harmless request, then balloons into a major commitment and unwritten contract.
  • Did either party do things to undermine trust? Not keeping promises is a big one, I’d start there. This usually happens when people forget what promises were made. See next point.
  • Who is reading the Statement of Work and ensuring that execution is aligned to the spirit and letter of that document? Once it is signed, that document seems to gather dust while people make up the rules and scope as they go along.
  • Is everyone in it for the long haul? Even if it is a small project, there will be more projects later. Even if there are no projects, there is word of mouth and referrals to worry about. For both client and vendor.
  • Does everyone realize how much hard work goes into a successful engagement? This is not easy, but vendors and clients seem to make it more difficult with their sloppiness. This understanding comes from experience, but it can come earlier with proper training in both organizations.
  • Who is in charge of making sure the engagement is successful? Are they empowered? Do they have the freedom to hold other people within their organizations accountable?

This is not easy. Vendors are here to stay. Time to upgrade skills for both clients and vendors.

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#57 Starting point

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Does the starting point matter? After all, if you take a systems approach, everything is interconnected. No matter where you start, you are going to touch the other dots at some point.

You may want to select a starting point based on the following:

  • Your customer has passion around a subject, or is experiencing a pain point that needs immediate attention.
  • There is a natural sequence to things, for example, you have to put on your socks and then your shoes. It can never be the other way around.
  • There are some realities that obey the laws of physics in the short term, for example, size of your budget, your market share, an unreasonable boss, and organization capabilities.

The ultimate test is the intangible one: “What makes sense?” Will there be a natural momentum or will you have to invest in persuading your coalition to build the momentum?

Whatever it is, please pick a point and get started. Analysis paralysis will get you knowhere (pun intended).

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