What Vendors Don\'t Want You To Know About Software Selection & Contracts
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Advice, lessons learned, and strategies for erp software selection and contracting. From HRMStrategies 2011 Conference, Washington DC.
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What Vendors Don\'t Want You To Know About Software Selection & Contracts
- 1. 165What Vendors Don't Want You to Know About System Selection and Contracts Mike Harmer & Diane Diamond HR Workforce Solutions & Analytics Managers Intermountain Healthcare, Inc
- 2. Diane Diamond Mike Harmer Current Responsibilities - Core HRMS including benefits tracking and absence management - LMS - Student Tracking - Employee Health system - EAP system Education - Masters Degree 16 years HRIS experience Current Responsibilities - Analytics - HR Data Warehouse - Talent Management - Web Development Education - Masters, Brigham Young University 14 years HRIS experience
- 4. Nonprofit
- 6. 23 hospitals
- 7. 150+ clinics, surgery centers and physician offices
- 8. Homecare and hospice services
- 13. Payroll
- 14. Self Service
- 19. Surveys
- 23. Recruiting
- 24. Performance
- 25. Succession
- 26. Compensation
- 30. Weak data export abilities
- 32. Preparation: Research 3rd Party Analysts Industry Trends Press Releases Company Ownership Acquisition Histories Market Share Manage Internal Politics
- 33. Preparation: Saas, On-Premise, or Build?
- 34. Preparation: Shortlist Clearly define the “Deal Breakers” Cost (base on estimates) Functionality Delivery method(s) Finding Vendors Tradeshows Analyst Research Customer networks
- 35. Preparation: Manage Politics Clear, Written Project Charter Who has final decision authority Define teams (selection, implementation, steering, etc.) Identify guiding documents and timeline Align with key stakeholders’ hot issues Keep stakeholders fully informed Use the Prioritization Matrix
- 36. Preparation: Prioritization Matrix Step 1
- 37. Preparation: Prioritization Matrix Step 2
- 38. RFP Tips Communicate priorities, but not ranking Sell your organization to the vendor Front Page of RFP – Terms & Conditions Include RFP response in contract Use customer’s contract (be realistic) Specify 3rd party tool details Yes/No answers AND explanation Ask vendor to respond to analyst reviews (specific or open-ended)
- 39. Vendor Demo Secrets Don’t string the vendors along - include only the vendors you’re serious about Don’t let the vendors know who they’re competing against Don’t just look at end-user experience – consider admin and configuration tools too
- 40. Vendor Demo Secrets Do balance your audience with both strategic and task-level people Consider the point of view of those rating the demos and understand their biases Do consider legacy systems in demos Do combine the buy and build options in the analysis and demos
- 41. The Prioritization Matrix: Step 3
- 42. The Prioritization Matrix: Step 4
- 43. Contract Negotiation Strategies Consider fixed vs. variable cost implementations Sell yourself to the vendor – why do they want you as a client? Separate the Lead for contract negotiations Consider having a “Blackout Period” Negotiate any major gaps as hard deliverables
- 44. Implementation Tips Pay attention to the details – let the vendor know you are counting pennies Ask for detailed invoices that include all the tasks your paying for
- 45. Implementation Tips If Internal IT is involved, create a little competition to combat resistance or delays. Build internal skill set – the consultants won’t always be there.
- 46. Q & A Diane DiamondDiane.diamond@imail.org Mike HarmerMike.harmer@imail.org
- 47. For more information on this or any other HR technology topic go towww.ihrim.org http://core.ihrim.org
- 48. IHRIM needs your feedback!Please complete a session evaluation for 165What Vendors Don't Want You to Know About System Selection and Contracts Thank you!
Editor's Notes
- 3rd party Analysts biases? history? Relationships? Career aspirations?Press Releases Worst source of analysis, but there’s good information hiding there lies, damn lies, and statistics, and there’s press releases – Mark Twain “will continue to support both products” “mutually beneficial merger” “merger”Company Ownership workday and peoplesoft what is the owners’ exit strategy? public vs privateAcquisition Histories do they build or acquire? are they acquiring a competitor or a technology? how well do they integrate?Market Share is this fish going to survive fishing season?
- Deal breakers cost (estimates call to vendors for approximate estimates functionality modules in/out delivery methods do they offer the methods you want? example: saas for tmFinding vendors tradeshows analyst research worth the cost – they know history, industry, track deals, etc customer networks often find information that is not avilable anywhere else – what is this really like to own?
- Project Charter teams AND ROLES demos – who gets votes, who gets to recommend? How many from each involved area?Align with key stakeholders’ hot issues highly engaged execs will speed up problem resolution critical for contract negotiation phase important for managing internal project obstaclesKeep stakeholders fully informed Deadline visibility Risk management
- RAW NOTESDo not string vendors along for comparison. Your company will have bad reputation that will hurt future. (Consultants and salespeople move around a lot in this industry) Do not let vendors know who their competitors are Consider point-of-view of those rating the demos (data entry people will look for easiest data entry). Balance audience with strategic & task-level people For demos, include the administration and system configuration Combine buy and build options in rfp analysis and demos Consider including legacy system in demos - puts pressure on vendor for contract renegotiation
- RAW NOTESFixed vs variable cost implentations - depends on your team's experience and vendor's configurability/expertise. example of our TMS implementation Negotiate major gap fixes into contract as hard deliverables - BEFORE selecting final vendor Separate lead for contract negotiations (good cop bad cop) Blackout period Sell yourself to vendor - leader in industry, who follow you, why would landing your account benefit the vendor?
- RAW NOTESRead invoices and ask for more detail. let them know you are counting pennies. Ask for details on invoice internal IT: create competition (beat monopoly) with consulting option - always available