IT Vendor Risk

IT Vendor Risk Management Co-authored by Steven Nichols, MBA & Dr. Linda Kostic Technology vendors and other 3rd parties create leverage, flexibility, and scale for their clients. They are an essential part of how businesses operate and create stakeholder value. These vendor relationships, however, also increase the risk of an interruption in service, exposure ofContinue reading “IT Vendor Risk”

Vendor Governance for IT Vendors

Vendor Governance for IT vendors By David Johnson MBA, & Steven Nichols MBA Just before close of business one Friday, I get a call from a frustrated ERP Director. “Our application managed services vendor isn’t working out.” he says.  There are 18 months left in the contract. Now is a good time to start theContinue reading “Vendor Governance for IT Vendors”

Vendor Management Skills

Vendor Management Skills vs. Team Management Skills Many IT leaders struggle with the transition from managing internal delivery teams to managing an external service provider. They can hamstring the vendor and limit their effectiveness by micromanaging, meddling, or nitpicking the way the service is delivered. Managed services agreements include the “Management of the Service.” DuplicatingContinue reading “Vendor Management Skills”

Misalignment between vendor goals and business objectives

Misalignment between vendor goals and business objectives In theory, what we expect of technology vendors should be in alignment with what the business expects and needs of the technology function. If we work to improve vendor performance, the business should be in a better position to meet financial objectives and serve our stakeholders. Otherwise, whyContinue reading “Misalignment between vendor goals and business objectives”

Perverse Incentives & Technology Vendors

Perverse Incentives & Technology Vendors Despite best intentions, companies often create vendor relationships with incentives which run counter to the best interest of their firm. These perverse incentives effectively reward vendors to deliver poor business value. Perverse incentives can be created through mistakes in the contracting phase. Lopsided terms, intended to empower the client, ironicallyContinue reading “Perverse Incentives & Technology Vendors”

Measuring Technology Vendor Business Value

Measuring Technology Vendor Business Value Technology vendors are a high point of leverage for creating business value, but that value can be difficult to measure. The importance of a vendor may be obvious to everyone, though the exact return on that investment is unknown. Quantifying business value helps technology leaders make good decisions about whichContinue reading “Measuring Technology Vendor Business Value”