Working with Vendors Creating Partnerships that Work - TACAC MMI

3. 3 You Know What They Say… “Vendors – You can’t live with them, you can’t live without them” The reality is this most organizations can’t exist without vendors

4. 4 You Know What They Say… “Vendors – You can’t live with them, you can’t live without them” The reality is this most organizations can’t exist without vendors It takes work to build good vendor relationships

5. Some vendors can be annoying, overbearing, and obnoxious - Many newbies get sales training that tells them this is effective - We know it is not - Often trying to sell you a product you don’t want or need No is a perfectly good answer when applicable - Don’t waste your or the salesperson’s time - Recognize they are just doing their job 5 The Truth is…

6. Don’t abuse vendors by asking for detailed quotations and proposals for equipment or services you don’t intend to buy - Again, NO is OK It’s a lot of work to respond to an RFP, or to create a detailed quotation - Make sure there is a chance to win your business 6 Play Fair…

7. Turning Vendors into Partners

8. Data Security - Make sure you understand how personal data will be collected and used - Scrutinize data security and privacy policies Financial Stability - If relying on a long-term solution, make sure the company is positioned to fulfill your contract 8 Two Important Issues to Consider When Selecting a Vendor

9. It takes work to develop good relationships - Remember, you need them to achieve your goals, and they need you to thrive as a business Building relationships with key vendors should be on your ongoing task list - They should be valued members of the team, and treated as such - It’s not “bad business” to develop positive relationships with these folks just because they send you bills for their services 9 Establishing Good Vendor Relationships

10. Assure the vendor understands your needs and vision - Select those who match your organization’s culture and values – ask lot’s of questions - Look for somebody you can work with frequently, will perform work at the level you expect, and will contribute to your project - While budgets are extremely important, the “cheapest” product might now be the best solution 10 Things to Consider When Building Vendor Partnerships

11. They should be valued members of your team - They are providing a service that you either don’t want to provide yourself or simply don’t have the ability to perform – trust their expertise - Welcome them as an extension to your team - Treating them as “that company that just takes money to provide a service” doesn’t benefit either party • And, if they are “that” company, wrong partner 11 Work “With” Your Vendor Partners

12. Before selecting a vendor… - Research references and look at work samples - Meet several times before committing to a contract • Listen to their advice and judgment on what they know best, their business By the time you start your project, mutual trust should be well established - If trust has not been established, don’t start the project 12 The Vendor as a Collaborator – Create a Contract of Trust

13. Treat your vendor partner with the same respect as you would anyone else on your payroll - Make them a member of your team - Be fair - Expect the best - Set realistic goals and expectations - Listen to their feedback 13 Make Insiders Out of Outsiders

14. If the vendor made your project a success, then… - Maintain your ties and draw upon their experience in the future • Create a true trusted partner - Become a reference for your vendor partner • Referrals can help increase the success of your vendor partner, assuring they will be there when you need them 14 Don’t End the Relationship With the Completion of the Contract

15. Thank You! Don Tollman don.tollman@hobsons.com Twitter: @Don Tollman

Editor's Notes

Intro and who is in the room?
Vendors are not the “dark side.”
Vendors are not the “dark side.”
Vendors are not the “dark side.”
It is important to recognize that salespeople are just doing their job, just like you do yours. Recognize that their job is to move as much product as possible. Without sales, companies can not stay in business and provide the services needed…and, most companies don’t have government financial support. Don’t be offended if they ask you to buy something. You get a salary, hopefully a pension, and vacation days…respect that the salesperson is trying to have the same.
To be clear, many states, institutions, and/or school districts do require a certain number of responses unless the product or service desired is “sole source.” All I am asking is to not encourage companies who you know will not win the RFP to submit only to meet the minimum number of responses.
If you hear and take away nothing else from this presentation, please listen carefully to this this… When working with a vendor who will have access, collect, or store your student or other sensitive data, you must know how that data will be handled. Make sure this is clearly articulated. It is incumbent on both parties to protect data privacy, and understanding how this will be accomplished is of utmost importance. While it is fine to work with start-ups and leveraged companies, it is very important to know that the company is financially stable. We were recently surprised when one of our competitors, who shall remain unnamed, filed for bankruptcy. This created issues for their current clients. Consider what will happen to your operation if the vendor goes out of business. Will you have access to the tools you need? Will any data be transferred to a company who may purchase the failed company or their assets. And, if that happens, does the new company have the same privacy policies?
At the onset of any new vendor relationship, both parties must clearly articulate themselves to arrive at a mutual understanding of wants, needs, and end results. Say what you will do…and, absolutely do what you say! Good relationships are mutually beneficial, and assure that solutions will continue to be discovered into the future.
From the start, you should give your vendor partner all pertinent information that relates to the project. Allowing the vendor to understand your organization and it’s goals, both internal and external, will provide insight into the current and possibly future projects. While it is the vendor’s responsibility to become familiar with your organization’s needs and goals, you should reciprocate by understanding those of the vendor. It pays to know what else your vendor partner has to offer.
Too often, organizations relegate their relationships with vendors to a “do-what-we-tell you” model, which can exclude them from all communications except those where orders are given for the vendor to follow. Remember, this is a two way street, and vendors often identify their most valuable clients as those who keep the lines of communication free and clear and provide them with timely information on decisions that will affect their services. In a best-case scenario, the vendor’s representative is involved in all discussions about the organization’s service that they are helping to produce. Vendors can often make valuable contributions to the decision-making process when it involves their area of expertise.
Vendors who have successfully completed a project and earned the trust of colleagues you respect are likely deserving of your trust as well. Smart leaders look to their colleagues for recommendations of successful vendors.
Let’s review these important points. But, while making insiders out of outsiders remember that humans are fallible… When you have problems, and if you work with anyone long enough you will have some problems, let them know. Be honest and provide feedback to help them understand what you will expect in the future. Vendors are nothing more than a collection of people, and people sometimes make mistakes. You obviously can’t allow repeated mistakes or problems, but don’t overreact to the first one…assuming they make it right. Be realistic, vendors provide services, not miracles. Like any member of your team, a vendor must meet your expectations…assuming they have been laid out appropriately. If the performance level just isn’t acceptable, and you’ve given it a fair shake, it is time to find a new vendor. If that happens, when severing the relationship for performance problems, let them know why you are doing so, and how they might improve in the future. Your feedback will allow them to exit with knowledge that may benefit them and other clients in the future. You should also document these expectations and problems so you can address them with your replacement vendor.
If you have truly “clicked” with your vendor, then maintaining a consultative relationship and providing a reference can pay you big dividends in the future by adding a loyal partner to your network. Use them to run future ideas past as a reality check and/or trusted advisor. As I mentioned before, when you are selecting a vendor to work with on your project, you should seek references. In turn, if you believe your new partner has performed well, offer to be a reference so your colleagues will be able to learn who will be the best partner for their project.

Working with Vendors Creating Partnerships that Work - TACAC MMI

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Working with Vendors Creating Partnerships that Work - TACAC MMI

Editor's Notes