How do you hold IT vendors accountable?

1 Define clear goals and expectations

Before you engage with any IT vendor, you need to have a clear vision of what you want to achieve, what you need from them, and how you will measure their success. You should communicate your goals and expectations to your IT vendors in writing, preferably in a formal contract or service level agreement (SLA). This document should specify the scope, deliverables, timelines, quality standards, and payment terms of your vendor relationship, as well as the roles and responsibilities of both parties. Having a clear and detailed agreement will help you avoid misunderstandings, disputes, and disappointments later on.

2 Monitor and measure performance

Once you have a contract or SLA in place, you need to monitor and measure your IT vendor's performance regularly and objectively. You should establish key performance indicators (KPIs) and metrics that reflect your goals and expectations, and track them using tools, reports, and dashboards. You should also schedule regular meetings or calls with your IT vendor to review their progress, provide feedback, and address any issues or concerns. By monitoring and measuring performance, you can ensure that your IT vendor is delivering on their promises, identify any gaps or risks, and take corrective actions if needed.

3 Provide incentives and penalties

Another way to hold your IT vendors accountable is to provide incentives and penalties based on their performance. Incentives can be positive rewards or recognition for exceeding your expectations, such as bonuses, referrals, testimonials, or contract extensions. Penalties can be negative consequences for failing to meet your expectations, such as deductions, fines, disputes, or contract termination. You should include these incentives and penalties in your contract or SLA, and apply them consistently and fairly. By providing incentives and penalties, you can motivate your IT vendors to perform better, and protect your interests and rights.

4 Build trust and collaboration

Holding your IT vendors accountable does not mean being adversarial or micromanaging them. It means being respectful, transparent, and collaborative. You should treat your IT vendors as partners, not adversaries, and build trust and rapport with them. You should communicate openly and frequently, share information and feedback, and listen to their suggestions and concerns. You should also respect their expertise and autonomy, and give them the resources and support they need to do their job. By building trust and collaboration, you can foster a positive and productive vendor relationship that benefits both parties.

5 Review and evaluate outcomes

Finally, you should review and evaluate the outcomes of your IT vendor relationship at the end of each project, contract, or period. You should compare the actual results with the expected goals and expectations, and assess the value and quality of the vendor's work. You should also solicit feedback from your stakeholders, such as your team, your customers, or your management, and ask them how satisfied they were with the vendor's performance. You should share your findings and feedback with your IT vendor, and acknowledge their achievements and areas for improvement. By reviewing and evaluating outcomes, you can learn from your experience, celebrate your success, and improve your future vendor relationships.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?