22“A good alliance is like a unicorn. Everybody hadheard of them, but few have actually seen them.”Tom Hooks Motorola
1. What are the most critical factors inselecting a vendor or a partner.2. How to set the right business expectationsto ensure aligned engagement on bothsides.3. How to keep control of the relationshipwhile providing the partner sufficientflexibility to innovate and improve4. How to measure success and how tohandle failures.
Performance CriteriaFinancialWhat does the vendors balance sheet look like compared to others?Its trends?What part of the vendors portfolio will we beTechnologyHas technology investment been yearly?Where are they investing?Does it match our strategy?ProcessHow do they measure quality? Is it industry standard?Do they measure outcomes? Cycle time?Does the measurement match our goals?EmployeesWhat is their attrition? Hiring practices?Do they have good talent management plans?Is there an adequate labor pool available geographically?OrganizationIs there a global account rep?Are there global barriers?Do they have structural alignment with us?1. Continued
Long term Mutual Success COMMUNICATION Flexibility Alignment◦ Culture Leading Practices in◦ Technology & Innovation◦ Financial measurements◦ Risk Mitigation Multi-Vendor Handoffs and Accountability How long are you in this relationship for?1. ContinuedWhat’s Most Important Today?
Trust and AlignmentCommunications1. What are the most critical factors in selecting avendor or a partner
Get past the dollar and cents, you are in this forthe long run.
2. ContinuedWho we are:• Organizational structure• Financials & Risk Structure• Special Programs (Green, Diversity)• Future Goals• Financial, Value Proposition, Market Share, LocationsWhat we are looking for:• Savings• Enablers & Flexibility• Risk Mitigation• Innovation & Best of BreedIntros and Want Ads
2. ContinuedAre the goals in the same playing field?Can we get there?• Costs versus Best of Breed• Costs versus Risk• Accountability• Growth and location• Short term wins versus long term success• Dedication & CONTROL
We set expectations – But here is reality2. ContinuedRealityExpectationExpectationExpectation
2. ContinuedCommunication• Proactive• Engage senior leadership early on• Ensure consistent delivery of key messages• Multifaceted approach to communication• Live• Email• Instant Messaging• Webinar• Seminars• QBRs/Annuals• Target approach and messages to differentaudiencesCommunication
3. How to keep control of the relationship whileproviding the partner sufficient flexibility toinnovate and improveDon’t Box Yourselves in!
3. ContinuedGovernance and Stakeholder ManagementPerform Will take responsibility for a significant portionof the project.Sponsor Will provide the resources and leadershipnecessary for the success of the project.Oppose Will attempt to block an action.Allow Will allow the project to proceed but may notdirectly support it.Assist Will help in some way to ensure the successof the project.InvolvementCommitment
3. ContinuedVendor CustomerExecutivesAccount OwnersProject LevelBuildTrustGovernance and Stakeholder ManagementVendor and Customer mapped in alignment
3. ContinuedGovernance and Stakeholder Management Relationship Management Service Request and Receipt Verification Management Performance Management Escalation Management Project Management Security, Business Continuity, Disaster Recovery Management Financial Operations Management Asset Management Contract Management Change Management Communications Management
3. Continued• Business Case Continually reviewed• Strategic responsibility kept close to the top• Multilevel organizational links• Regular, goal-oriented meetings• Utilize communications technologies• Scorecard and Metrics usedCommunication
.When things are going well, something will go wrong.When things just cannot get any worse, they will.3. Continued
Trust and AlignmentCommunications3. How to keep control of the relationship whileproviding the partner sufficient flexibility toinnovate and improve
Performance KPI MeasurementFinancialCosts in budgetEconomicTechnologyNew toolsImpact on functionalityProcessImprovement over x%Full compliancyEmployees Attrition less than x%Organization Customer Satisfaction4. ContinuedSLAs and KPIs from the contract?Why isn’t success that easy?
Performance KPI MeasurementKPI Service CreditKPI Service Loss4. ContinuedWin-Wins Gain Sharing?Why isn’t success that easy?
4. ContinuedDefine Success Which metrics are more relevant to your business Tangible objective Leading Indicators End Value or current activity Manage end to end Process Improvements Compete in the future Purpose of Metrics Recognize trends Motivate behaviors Prioritize resources Allow benchmarking Compensation Alignment Data Driven Communications
4. ContinuedIntended Value - Balanced Measurement Tangible Financial Costs per X Net Savings Operational Speed Volume Reduction Defect Reduction Intangible Strategic Innovative Satisfaction Relationship Decision Making Degree of Alignment Communication
4. ContinuedDefine Failure Differentiate between failure and problem/escalation driven change Lack of Success Lack of Tangibles Lack of Intangibles Lack of Communication
Trust and AlignmentCommunications4. How to measure success and how to handlefailure
Business Networking SessionsWorkshops, ForumsConferencesTrade ShowsCongressional Sponsored EventsPre Proposal/Pre Solicitation ConferenceVendor Outreach SessionsIndustry DaySocial NetworkingHow to Learn MoreCOMMUNICATE
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