Maximize Vendor Performance

Our Advice

Critical Insight

• Without effective management, vendor performance will remain at standard or deteriorate below standard service. Actively manage vendor performance to motivate them to provide exceptional service.
• Treat the collection of IT vendors as a portfolio requiring regular performance review. Actively manage them all, but pay the most attention to underperformers and develop plans to bring them up to a higher level of service.
• To become a favored client to the vendor, establish internal responsibility for ensuring you have shared targets, build a relationship with liaison staff and their managers, implement an effective performance tracking process, and resolve small issues early to correct potentially chronic problems.

Impact and Result

• Vendor performance metrics provide the common understanding between the organization and the vendor delivering the products and/or services. Measure progress against metrics and set targets for higher performance, or address a vendor's substandard performance before it becomes a larger problem.
• The size of your organization relative to your vendor's and the role of your assigned client-facing representative dictate how you manage the relationship. Cultivate vendor management relationships to leverage negotiations and nurture the client-facing worker who will go above and beyond for you.
• Without sufficient motivation, vendors will generally only meet the agreed expectations. Leverage the drivers of vendor profitability, reputation, and partnership to motivate them to higher performance.
• Manage vendor relationships as a portfolio to achieve a consolidated view of performance highlights and issues, higher customer satisfaction, lower costs, higher quality, and better vendor service.