Vendor Management
Vendor Management World Class Operations - Impact Workshop
Info-Tech Research Group
1
Beyond Practical Research – Workshops Get You To Results Workshops: Leverage Best-Practices Research and Get to Action • • • •
Unlike other Research firms, we believe it’s important to help our members implement improvements. An onsite 40-hour workshop, which allows you to make systematic improvements to your core processes. Workshops are designed to help focus attention, create alignment, and ensure best practices are put to work at your organization. Our workshops help you get to immediate impact and results and are tailored to your situation and needs.
Workshops: Focused on You Implementing Improvements
Diagnose Current State
• The goal of each Capability Optimization Workshop is to create tangible benefits • • • •
and clear improvements as a direct result of the workshop. Specific deliverables, goals, metrics, and outcomes are established for each workshop. Successful workshops will leverage our years of analyst experience and written research to provide an engaging experience which focuses on implementing and getting to measurable results. Each workshop begins by diagnosing the current state, and then focuses on designing high impact improvements based on best-practices research. Three and six month follow-up will occur to ensure benefit realization.
Measuring Benefits
Capability Optimization Workshop
Implementation Support
RightSizing Process
Process Design
ITRG Workshops provide the best-practices and implementation support necessary to help an IT leader build a World Class IT Operation Info-Tech Research Group
2
Vendor management is of key importance to any IT organization that sources externally What is vendor management? Vendor management involves all aspects of the relationship between an organization and a vendor or supplier, including:
• The initial selection process and evaluation of a vendor. • Ongoing management of vendor relationships and contracts. • Ongoing management of vendor risk. • Ongoing management of vendor performance and compliance with agreed upon service levels.
Why vendor management? Effective vendor management provides a holistic view of an organization’s vendors, enabling the organization to:
• • • • • •
Objectively evaluate, assess, and select new vendors and service providers. Establish and formalize the vendor relationship to build mutually beneficial partnerships. Manage vendor performance and customer expectations. Manage vendor contracts. Identify, monitor, and manage vendor risk to the organization. Ensure that the organization’s vendors deliver high quality service and value for money.
Info-Tech Research Group
3
This workshop is broken into 5 days to… Name
Goal
List of deliverables
Day 1
Introduce VM and assess the current state
Assess VM maturity and risk exposure
• Maturity assessment • Business goal mapping • Vendor risk assessment
Day 2
Optimize vendor selection and contracting
Create a formal selection and contracting process that follows best practice
• RFP / RFI / RFQ decision criteria • Due diligence plan • Vendor evaluation scorecard • TCO analysis • Selection and contracting process map
Day 3
Build vendor review and contingency plans
Develop a vendor scorecard and contingency plans for key vendors
• Vendor scorecards and metrics • High-level vendor contingency and transition plan
Day 4
Develop vendor partnerships and track progress of VM
Identify vendor partnership opportunities and define VM success metrics
• Strategic partnership shortlist and development plan • VM success metrics
Day 5
Review final Plan next steps and gather deliverables and wrap feedback up
• Vendor management action plan
Info-Tech Research Group
4
1.0 Introduce VM and assess the current state
1.1 Introduce VM and identify workshop goals
1.2 Conduct a current and target state analysis
1.3 Conduct a detailed risk assessment
Introduce VM
Map vendors to key business objectives
Brainstorm vendor-related risks
Identify workshop goals
Assess the current maturity of VM
Calculate individual vendor risk exposure
Identify the target state of VM maturity
Segment your vendors through a risk-based model Understand approaches to vendor risk management
Info-Tech Research Group
5
2.0 Optimize vendor selection and contracting 2.1 Understand the current vendor selection process
2.2 Build a best-practice sourcing and evaluation methodology
2.3 Apply contracting best practices
Brainstorm standards and policies for vendor engagements
Understand the differences between RFI / RFQ / RFP
Understand different types of agreements and when to use them
Map out and analyze the current vendor selection process
Develop a vendor evaluation scorecard
Account for business risks in contracts
Define the due diligence process
Analyze the TCO and pricing structure of your contracts Apply contract negotiation and management best practices
Info-Tech Research Group
6
3.0 Build vendor reviews and contingency plans
3.1 Build vendor reviews
3.2: Identify relationship best practices
3.3 Build contingency plans for key vendors
Identify current review practices
Map out the vendor relationship communication structure
Develop escalation scenarios
Develop a vendor scorecard
Create a vendor calendar
Prepare for vendor outages or failure
Optimize relationship management techniques
Plan for vendor transition or retirement
Info-Tech Research Group
7
4.0 Develop vendor partnerships and track the progress of vendor management 4.1 Identify candidates for partnership
4.2: Manage strategic partnerships
4.3 Track the progress of vendor management
Recognize the difference between vendors and partners
Understand different types of partnership
Define success metrics
Envision your partners
Review partnership best practices
Establish ownership of success metrics
Assess the fit of strategic partnership candidates
Plan next steps to develop strategic partnership
Info-Tech Research Group
8
5.0 Review final deliverables and wrap up
5.1 Review final deliverables
5.2: Wrap up and gather feedback
Review final deliverables and key outputs
Identify the achievement of workshop goals
Discuss outstanding issues
Gather workshop feedback
Plan next steps to improve vendor management
Info-Tech Research Group
9
Vendor Management Workshop Key Outputs Nine Key Outputs to be produced during the Workshop:
1 2 3
VM Maturity Assessment • Assess the maturity of vendor management in the organization and identify areas to improve.
Vendor Risk Assessment • Identify and prioritize the key vendor risks that the organization is exposed to. Vendor Evaluation Scorecard • Objectively evaluate your vendors during the selection and contracting process with a standardized evaluation scorecard.
4 5
Vendor TCO Analysis • Identify the true cost of your vendors, not just what’s paid to them in the license fee
Vendor Selection Templates • Document and formalize the vendor selection and contracting process with a process workflow diagram. • RFI / RFQ / RFP templates
Info-Tech Research Group
10
Vendor Management Workshop Key Outputs Nine Key Outputs to be produced during the Workshop:
6 7
Contingency Planning • Document escalation scenarios, develop a high-level contingency plan for vendor outages or failure, and prepare for a successful vendor transition or retirement.
9
VM Action Plan
• Plan the next steps for VM capability development.
Vendor Partnership Plan
• Understand what a partner is and how to manage a vendor partnership.
• Identify vendor partnership opportunities.
8
VM Success Metrics
• Define success metrics to track the progress of your vendor management processes.
Info-Tech Research Group
11
Vendor Management Workshop: Built on World Class Research, Experience, and Standards • •
110 page Research Report 12 in-depth activities and exercises
Research Process
Tools & Templates
• • •
• • • • • • • •
VM maturity assessment tool Vendor risk assessment tool RFI / RFQ / RFP templates Purchase strategy tool Vendor evaluation scorecard Vendor TCO analysis tool Contract negotiation plan Vendor assessment tool
•
More...
Team with over 30 years experience. Over 2,800 hours of research. Based on primary and in-field research.
COBIT 5, ITIL, CMMI-SVC, ISO/IEC 20000 Driven •
Grounded in open international standards.
Info-Tech Research Group
12
Info-Tech Research Group
1
Beyond Practical Research – Workshops Get You To Results Workshops: Leverage Best-Practices Research and Get to Action • • • •
Unlike other Research firms, we believe it’s important to help our members implement improvements. An onsite 40-hour workshop, which allows you to make systematic improvements to your core processes. Workshops are designed to help focus attention, create alignment, and ensure best practices are put to work at your organization. Our workshops help you get to immediate impact and results and are tailored to your situation and needs.
Workshops: Focused on You Implementing Improvements
Diagnose Current State
• The goal of each Capability Optimization Workshop is to create tangible benefits • • • •
and clear improvements as a direct result of the workshop. Specific deliverables, goals, metrics, and outcomes are established for each workshop. Successful workshops will leverage our years of analyst experience and written research to provide an engaging experience which focuses on implementing and getting to measurable results. Each workshop begins by diagnosing the current state, and then focuses on designing high impact improvements based on best-practices research. Three and six month follow-up will occur to ensure benefit realization.
Measuring Benefits
Capability Optimization Workshop
Implementation Support
RightSizing Process
Process Design
ITRG Workshops provide the best-practices and implementation support necessary to help an IT leader build a World Class IT Operation Info-Tech Research Group
2
Vendor management is of key importance to any IT organization that sources externally What is vendor management? Vendor management involves all aspects of the relationship between an organization and a vendor or supplier, including:
• The initial selection process and evaluation of a vendor. • Ongoing management of vendor relationships and contracts. • Ongoing management of vendor risk. • Ongoing management of vendor performance and compliance with agreed upon service levels.
Why vendor management? Effective vendor management provides a holistic view of an organization’s vendors, enabling the organization to:
• • • • • •
Objectively evaluate, assess, and select new vendors and service providers. Establish and formalize the vendor relationship to build mutually beneficial partnerships. Manage vendor performance and customer expectations. Manage vendor contracts. Identify, monitor, and manage vendor risk to the organization. Ensure that the organization’s vendors deliver high quality service and value for money.
Info-Tech Research Group
3
This workshop is broken into 5 days to… Name
Goal
List of deliverables
Day 1
Introduce VM and assess the current state
Assess VM maturity and risk exposure
• Maturity assessment • Business goal mapping • Vendor risk assessment
Day 2
Optimize vendor selection and contracting
Create a formal selection and contracting process that follows best practice
• RFP / RFI / RFQ decision criteria • Due diligence plan • Vendor evaluation scorecard • TCO analysis • Selection and contracting process map
Day 3
Build vendor review and contingency plans
Develop a vendor scorecard and contingency plans for key vendors
• Vendor scorecards and metrics • High-level vendor contingency and transition plan
Day 4
Develop vendor partnerships and track progress of VM
Identify vendor partnership opportunities and define VM success metrics
• Strategic partnership shortlist and development plan • VM success metrics
Day 5
Review final Plan next steps and gather deliverables and wrap feedback up
• Vendor management action plan
Info-Tech Research Group
4
1.0 Introduce VM and assess the current state
1.1 Introduce VM and identify workshop goals
1.2 Conduct a current and target state analysis
1.3 Conduct a detailed risk assessment
Introduce VM
Map vendors to key business objectives
Brainstorm vendor-related risks
Identify workshop goals
Assess the current maturity of VM
Calculate individual vendor risk exposure
Identify the target state of VM maturity
Segment your vendors through a risk-based model Understand approaches to vendor risk management
Info-Tech Research Group
5
2.0 Optimize vendor selection and contracting 2.1 Understand the current vendor selection process
2.2 Build a best-practice sourcing and evaluation methodology
2.3 Apply contracting best practices
Brainstorm standards and policies for vendor engagements
Understand the differences between RFI / RFQ / RFP
Understand different types of agreements and when to use them
Map out and analyze the current vendor selection process
Develop a vendor evaluation scorecard
Account for business risks in contracts
Define the due diligence process
Analyze the TCO and pricing structure of your contracts Apply contract negotiation and management best practices
Info-Tech Research Group
6
3.0 Build vendor reviews and contingency plans
3.1 Build vendor reviews
3.2: Identify relationship best practices
3.3 Build contingency plans for key vendors
Identify current review practices
Map out the vendor relationship communication structure
Develop escalation scenarios
Develop a vendor scorecard
Create a vendor calendar
Prepare for vendor outages or failure
Optimize relationship management techniques
Plan for vendor transition or retirement
Info-Tech Research Group
7
4.0 Develop vendor partnerships and track the progress of vendor management 4.1 Identify candidates for partnership
4.2: Manage strategic partnerships
4.3 Track the progress of vendor management
Recognize the difference between vendors and partners
Understand different types of partnership
Define success metrics
Envision your partners
Review partnership best practices
Establish ownership of success metrics
Assess the fit of strategic partnership candidates
Plan next steps to develop strategic partnership
Info-Tech Research Group
8
5.0 Review final deliverables and wrap up
5.1 Review final deliverables
5.2: Wrap up and gather feedback
Review final deliverables and key outputs
Identify the achievement of workshop goals
Discuss outstanding issues
Gather workshop feedback
Plan next steps to improve vendor management
Info-Tech Research Group
9
Vendor Management Workshop Key Outputs Nine Key Outputs to be produced during the Workshop:
1 2 3
VM Maturity Assessment • Assess the maturity of vendor management in the organization and identify areas to improve.
Vendor Risk Assessment • Identify and prioritize the key vendor risks that the organization is exposed to. Vendor Evaluation Scorecard • Objectively evaluate your vendors during the selection and contracting process with a standardized evaluation scorecard.
4 5
Vendor TCO Analysis • Identify the true cost of your vendors, not just what’s paid to them in the license fee
Vendor Selection Templates • Document and formalize the vendor selection and contracting process with a process workflow diagram. • RFI / RFQ / RFP templates
Info-Tech Research Group
10
Vendor Management Workshop Key Outputs Nine Key Outputs to be produced during the Workshop:
6 7
Contingency Planning • Document escalation scenarios, develop a high-level contingency plan for vendor outages or failure, and prepare for a successful vendor transition or retirement.
9
VM Action Plan
• Plan the next steps for VM capability development.
Vendor Partnership Plan
• Understand what a partner is and how to manage a vendor partnership.
• Identify vendor partnership opportunities.
8
VM Success Metrics
• Define success metrics to track the progress of your vendor management processes.
Info-Tech Research Group
11
Vendor Management Workshop: Built on World Class Research, Experience, and Standards • •
110 page Research Report 12 in-depth activities and exercises
Research Process
Tools & Templates
• • •
• • • • • • • •
VM maturity assessment tool Vendor risk assessment tool RFI / RFQ / RFP templates Purchase strategy tool Vendor evaluation scorecard Vendor TCO analysis tool Contract negotiation plan Vendor assessment tool
•
More...
Team with over 30 years experience. Over 2,800 hours of research. Based on primary and in-field research.
COBIT 5, ITIL, CMMI-SVC, ISO/IEC 20000 Driven •
Grounded in open international standards.
Info-Tech Research Group
12
