Here's how you can drive vendor performance and accountability through leadership.

Open Communication , Regular Meets ,Performance Review ,Fostering , Benchmarking , Resolve issues ,Training , Arranging Recognition Sessions

At my organisation, we have partners with multiple parties for IT solution Delivery. In my role, I regulary work with at least three partners. There is no one-size-fits-all strategy for working with multiple partners. Each partner has their own agreed-upon SLAs and their own way of managing deliveries. Collaboration, regular performance reviews against SLAs and feedback loops help make sure the service is delivered as agreed. However, it is also important to encourage the development of assigned resources and treat them as you would treat your own team members, which will help to improve the quality of the service.

To drive vendor performance and accountability, start by clearly defining expectations, including scope, timelines, and quality standards. Foster a collaborative environment by treating vendors as partners and involving them in decision-making processes. Regularly monitor performance using key performance indicators (KPIs) and schedule check-ins to discuss results and address issues promptly. Provide constructive feedback that is timely and actionable, promoting continuous improvement. Encourage vendor development through training and staying ahead of industry trends, and resolve conflicts with a problem-solving approach to strengthen relationships and ensure long-term success

Driving vendor performance and accountability through leadership involves a few key strategies. First, set clear expectations and communicate them effectively. Transparency and consistent feedback help vendors understand what is required. Second, foster a collaborative relationship, viewing vendors as partners rather than mere service providers. Regular check-ins and open dialogue build trust and encourage high performance. Third, lead by example. Demonstrate commitment to quality and accountability in your own actions. Lastly, recognize and reward good performance, motivating vendors to maintain high standards. This approach not only enhances performance but also builds strong, lasting partnerships.

Maintaining a constant channel of effective communication and fostering team bonding through various activities outside of work, such as group activities- sports, environmental and social events, can significantly enhance collaboration with vendor partners. It's crucial for vendor partners to feel like part of the team and to share your perspective on the business and its customers. When vendors truly value your business and align with your customer-centric approach, they will offer greater value in their services.

Maintain open lines of communication with vendors through regular meetings, updates, and feedback sessions. Foster transparency by sharing both positive and negative performance data promptly.

Driving vendor performance and accountability is fundamentally about fostering strong, collaborative relationships rather than simply managing transactions. Effective communication is the first key. Open, transparent channels ensures that both parties are always aligned and can address issues promptly. Next, leveraging the right technology can facilitate and enhance overall performance. As an example, use the same confluence and JIRA boards to manage work! Finally, augment traditional MSAs and SOWs with develop flexible, dynamic working agreements that have defined definitions of done. By focusing on relationships, we can create an environment where everyone has trust and is invested in the shared goal of delivering exceptional value.

I firmly believe that collaboration yields some great results for the business. With an attempt to collaborate well, we not only break the ice with our vendor/partner but we also get to know about their skillset which eventually enable us to get the best out of them through various activities.

Collaborative Goal Setting: Focused brainstorming sessions.Clearly define the overarching objectives for the year(Cost reduction, efficiency gains, quality improvement, Ai solutions etc) – what do you want to achieve together? Translate objectives into SMART goals(very imp to hold partner accountable) Establish baseline. Metric Identification & Tracking: Insightful metrics for each goal. These should directly reflect progress towards the desired outcome. Ex Precision & Recall for CoMO, Lead generation growth for Ads.Track these metrics consistently: dashboards/tools. Performance Reviews: Analyze and compare it to the established baselines.Discuss and adjust strategies as needed to ensure goals remain on track.

Regular monitoring of vendor performance is crucial. Follow these steps: Establish KPIs: Define key performance indicators that align with your business objectives, such as delivery times, defect rates, and compliance rates. Tracking System: Implement robust tools like dashboards or analytics platforms to monitor KPIs. Regular Check-ins: Schedule consistent meetings (weekly, monthly, or quarterly) with vendors to review performance. Address Issues Promptly: Tackle problems with a focus on collaborative solutions, avoiding blame. Continuous Improvement: Reinforce standards through regular feedback, encouraging vendors to meet and exceed expectations. This ensures ongoing enhancement and accountability.

Vendor performance evaluation and review should be strictly performed. Should collaborate on the exceptions and outlined area and take action points jointly with the vendor would help to achieve those areas positively. Communicating to external stakeholders on progressive updates of the action plans who were impacted is also very essential to get the trust back on your team.

Another approach I have seen used in vendor performance management is to adopt a Champion Challenger approach where you split the spend between two vendors say 70/30 percent where the Champion has the larger share and the Challenger gets the smaller share. This has the effect of the Champion vendor striving to exceed SLA’s and keep their larger share of revenue and the Challenger vendor doing the same striving to be the new Champion. The spend split can be moved back and forth across both vendors based on overall performance. This is most effective when negotiating price.

In my experience, it is crucial to be realistic when establishing a monitoring program for vendor performance. While key performance indicators (KPIs) are essential for measuring vendor output and ensuring alignment with business objectives, it's important to keep the process manageable for both the vendor and the client. If the KPIs and monitoring processes are too complex or resource-intensive, the program will be ineffective and costly for both parties. The key is to find a balance between comprehensive monitoring and practical implementation. You can foster continuous improvement without overburdening either side by focusing on the most critical metrics, scheduling regular check-ins, and addressing issues promptly and constructively.

Feedback is necessary to have a transparent information of Vendor performance as he is helping the organisation by becoming a one of the supportive tool towards meeting the Goals of management

Timely Feedback needs to be provided to vendor partners to promptly address the issues before they escalate. The feedback provided should be constructive and balanced where both strengths and areas for improvement are communicated in a clear and transparent manner to maintain a positive relationship. The feedback provided should be specific and actionable. You can cite specific examples and actionable suggestions for improvement. A feedback loop should always be a two-way dialogue; so that vendor partners feel comfortable sharing their concerns and suggestions.

There is a huge difference in providing feedback and opinions. - Opinions: “We need to improve” “We can do it in better way” “I need better results” “I simply don’t like it” “Please increase your resources” etc etc - Feedback - Discuss and explain your point of view. - Listen to other’s point of view Patiently - Respect each other POV - Identify the Gaps - Action plan to fill the gaps from both sides. Companies can’t stand alone without vendors and vendors are nothing without clients. Similarly, they can’t improve alone. After dealing with this kind of feedback, you don’t find issues to give further feedback for an extended period of time.

Treat vendors as partners rather than just service providers to encourage mutual growth and collaboration. Involve them in strategic planning and problem-solving discussions.

From my experience, timely, complete, and actionable feedback aligned with the contract's expectations is crucial for success. Delayed feedback leads to misalignment. Constructive feedback, both positive and critical, drives vendor performance. Specific and actionable feedback enables quick adjustments. Regular feedback loops promote continuous improvement and show commitment to the partnership. Untimely feedback hinders growth and effectiveness.

Firstly vendor should be called a partner. Secondly the partner should align with company goals which will make them feel to be part of the organization. Also you should assign target driven bonus and penalty to keep them engaged. Monthly/quarterly performance review should be conducted to monitor the progress and shortfalls.

Investing in vendor development is a strategic move that can drive mutual growth and innovation. By offering training and introducing new technologies, businesses can enhance vendor performance and service quality. Co-investing in development programs not only keeps vendors ahead of industry trends but also strengthens loyalty and fosters long-term partnerships. This approach is a win-win, benefiting both the business and its vendors.

Give ample opportunities to the trusted partners who have been around and delivered nothing short of great experi3nces and numbers and don't shy away from putting a referral word.

Investing in vendor development is a powerful catalyst for performance and innovation. Throughout my tenure as a healthcare leader, I have crafted tailored training programs and facilitated industry certifications to elevate vendor skills and ensure compliance. I introduced tech demonstrations, pilot programs, and collaborative projects, provided trend reports and forums, and implemented shared funding and joint R&D projects. Additionally, our recognition programs honor vendors for outstanding performance with awards, acknowledgments, and bonuses. These initiatives foster loyalty and motivate excellence. By promoting continuous improvement, they strengthen partnerships and elevate service delivery and innovation.

Remain interested in the vendor products roadmaps and understand how the evolution of their products might impact the relationship long term. Make innovation key in your quarterly business reviews and provide product design input especially if you are buying SAAS where product features tend to be rolled in new releases.

Most of the time a conflict situation is approached with a confrontational attitude which makes the resolution a very difficult objective to achieve. In my experience, when a conflict situation is addressed with a constructive and collaborative attitude keeping in mind the overall growth of both parties then the resolution is always quick. It also leads to more open dialogue which fosters innovation and ideation. This also creates an environment where proactive steps are taken to ensure that there is minimal confrontation and more collaboration. The discussions should focus on addressing the issue and not on finding fault with individuals.

Conflicts are a natural part of any business partnership. The key is managing them effectively. Approach conflicts with a problem-solving mindset, concentrating on the issue at hand rather than the individuals involved. Maintain open and transparent communication to work towards resolutions that are equitable for both parties. Successful conflict resolution can actually strengthen the business relationship and prevent similar problems from arising down the line.

Conflicts can happen anytime you have two organizations with different goals trying to work together. Dispute resolution for major issues like breach or stolen IP need to be clearly documented in the contract. For more minor disputes there should be an escalation protocol to follow. Both parties need to be reasonable and weigh the short term disruption against the long term expectations for the relationship as resolution is being discussed.

Clear communication and identifying and defining the KPI and monitor the progress make sure the KPI data is accurate and transparent, when conflict arises it is most important to focus on the issue and root cause of the issue , defining RACI matrics will help to reduce the conflict. Rather than blame games it is better to identify the problem and root cause of it then solution , if possible time to resolve , in case of any conflict which has more impact to the vendor or customer we may do the added value service if possible to make them back happy,but make sure for added value service vendor creates the false conflicts.

Approach conflicts with a problem-solving mindset, focusing on the issue rather than the individuals involved. Maintain open communication and strive for resolutions that are fair and beneficial to both parties.

Celebration & sharing impact: Recognize and celebrate milestones and successes to maintain momentum and motivation. Sharing real time impact of vendors work will drive the team to deliver high performance (ex: your reviews last quarter has helped users from a harmful phishing scam etc.)

Driving vendor performance and accountability involves clear communication of expectations, regular performance reviews, and data-driven insights to monitor key metrics. Implement performance-based incentives to align vendor interests with organizational goals and maintain open communication channels for updates and issue resolution. Foster collaborative problem-solving, invest in vendor training and development, and implement risk management strategies to mitigate potential issues. Recognize and reward exceptional performance to boost morale and share best practices. Establish a feedback loop for continuous improvement, ensuring vendor relationships are productive and aligned with your organization's objectives.

Vendor shall be considered as partner not only by Functional team (Like IT only) but from whole organisation perspective including Business teams like Sales & Marketing. Then only a feeling of Partner Congress into picture. Also, CSI ( Continuous Service Improvement) shall be part of the contract with clear expectations and associated rewards aligned with Customer Organizations vision. It shall be a win-win situation for both. Often seen rewards, if mentioned in contract, are settled against applicable SLA breach service credits which shall be avoided.

You need to make the vendor a partner, so that he understands what he needs to deliver and how he can support the organization and exceed the SLAs and KPIs. If he feels that he is a very important part of your team he will ensure quality and provide the support. Then you will not waste time doing standard vendor management.

????? ???? ???? ?? ?? ???? ?? because a well-maintained building might not necessarily meet all the Vendor KPIs and pass the audit hence move away from manpower-based contracts to service level-based contracts. Consider hiring a third-party software solution that uses a mobile application driven by Artificial Intelligence to track these KPIs and SLAs. This will ensure that, as a client, you have direct real-time access to the WebApp, guaranteeing "Net Zero" data manipulation and 100% data accuracy.