Connie Allison

Changing Your Focus Sourcing Looking for lowest price Placing orders Vendor Management Maximize company’s technology investments Looking for business advice, guidance, expertise, value that vendors could provide Total Cost of Ownership Qualifying vendor performance Managing performance Managing entire vendor relationship lifecycle Guth, Stephen, The Vendor Management Office

Vendor Management Competencies Contract Management Relationship Management Performance Management Gartner, Vendor Toolkit

Relationship Management (internal and external) This is an overarching role that builds and governs the relationship with one or more vendors. This role is also sometimes responsible for managing relationships with organization stakeholders such as business users, enterprise architects, operations managers, risk managers and legal personnel. The relationship manager ensures that relationships work effectively across all vendors and with the organization as a whole to achieve desired business outcomes for all parties where possible. Gartner, Vendor Toolkit

Benefits To Liberty Relationship quality Improved customer satisfaction, vendor collaboration and cooperation Improved relationship scores in scorecards Responsiveness Flexibility Ease to work with Access to vendors Gets vendors energized to do business with company Protects against bad deals if we have long-term relationships Offers better insights both directions To Vendors Predictable revenue stream Helps vendor grow their own ROI Development into new markets/use cases Centralizes relationship management Facilitates access to opportunities Provides feedback (ex. job interview with no response that you were not hired nor why) Private sounding board (ex. guidance on how to communicate bad news to company) Information about org changes at company (official changes or change in decision makers)

Levels of Partnerships Select carefully which companies will be most beneficial to manage Define levels What companies are at each level What are expectations for various levels

Focus: Strategic and Tactical CommodityTacticalStrategic Commodity Tactical SupplierCommodity

Sample Selection Process

Sample Expectations Liberty Responsibilities Expectation Share Strategic Plans CIO Planning Mtg. Travel to headquarters IT Leadership Mtg. (on site) Reply to annual surveys Routine updates on partnership (call or ) Triggered events (i.e. product dissatisfaction) New product evaluations Sit on advisory boards Referrals Vendor Responsibilities Expectation Engaged Account team (on site, responsive to , actively learning Liberty) Technology Resources and Planning efforts Media Releases Insights to and influence on product roadmaps Assist with multi-vendor partnerships Effective support and escalation paths Offer avenues of influence (advisory boards, product reviews, etc.) Academic partnerships

Negotiations Maximize benefits to both sides Don’t ruin good relationships needlessly

11 Value Added for Customer Vendor Profitability Vendor not profiting? Expect it to reduce its own costs or increase fees. Not getting value? Find value or terminate the relationship. a.Find a better solution b.Train the users c.Improve processes d.Invest in infrastructure Vendor making more than expected? Negotiate a lower price, better terms, or higher level of service. Vendor Renegotiation Drivers “We used to squeeze our vendors as hard as possible. Now, we understand that they add more value when we let them make some money. We aim for moderate profitability.” -CIO, Health Care Info-Tech Research Group

What does “trust” mean in this context? Integrity Intent Character Capabilities Credibility Competence Covey, Stephen M.R., The Speed of Trust

13 Behaviors of Trust Talk Straight Demonstrate Respect Create Transparency Right Wrongs Show Loyalty Deliver Results Get Better Confront Reality Clarify Expectations Practice Accountability Listen First Keep Commitments Extend Trust Covey, Stephen M.R., The Speed of Trust

What happens when: Things go badly Changes in key personnel Multiple people have varying perceptions of the relationship

SUMMARY: Vendor Relationships Intentional Focused only on certain accounts Beneficial to both sides Build via Trust Character Competence

References Guth, Stephen. The Vendor Management Office: Unleashing the Power of Strategic Sourcing. Lulu Enterprises, Covey, Stephen M.R. The Speed of Trust: The One Thing That Changes Everything. Free Press, Various research articles Info-Tech Research Group Gartner

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