Client Vendor Relationships

1

• Client / Vendor Relationships
• (from the inside out)
• Bill Terry Vassar College
• Steve Fredette TAG Solutions

2
Why Enter a Vendor Relationship?

• The vendor must
• Do something I cant do
• Do something I cant afford to do
• Do something I dont want to do
• Be better, faster, cheaper

3
Whats in it for me?

• Mutual benefit is critical
• Vendor wants
• to make a profit
• to grow the business
• to earn a reference
• to increase market share
• Vendor needs
• to know why they are there what is expected?
• to know where the boundaries are not be greedy
• to understand the Rules of Engagement
• clear direction, redirection, and criticism

4
Whats in it for me?

• Mutual benefit is critical
• Customer wants
• to eliminate pain
• demonstrated value improvement vs. cost
• to keep some information private
• Customer needs
• to know how his own organization operates
• Staff, purchasing, contracts, bidding, politics
• to identify key deliverables
• to provide ongoing correction, criticism, and
  prioritization

5
Make sure it is worth doing

• Vendor relationships may not work if
• Vendor churn is part of your culture
• You cant agree on the value proposition
• You cant put your pain points in a box
• You are simply sourcing commodities
• You cant consider a vendor a partner
• You cant show your cards (or at least some of
  them)

6
Key Elements of a Successful Relationship

• Open Communication
• Builds trust - trust builds long-term
  relationships
• Is open, honest, and direct
• before, during, after the contract
• Is regular and routine - make time to do it and
  stick to it
• (face to face is important)
• Requires expression of compliments and concerns
  with equal directness
• Donts
• Promise something you cant deliver
• Take advantage of any situation

7
Key Elements of aSuccessful Relationship

• Active Listening
• Understand what the customer wants (and doesnt)
• Learn to extract the pain points
• Translate pain points into solutions
• Understand that customers may just want to vent
• Take it slowly deliver on commitments
• Small steps build trust

8
Key Elements of a Successful Relationship

• Managing Expectations
• Know what youre asking for
• cheapest v. value-added
• Vendor may present another way to achieve your
  goal
• Do your due diligence on solving your challenges
• Dig into vendor reputations and experience
• Prioritize your pain points everything cant
  come first
• Small steps build trust

9
Key Elements of a Successful Relationship

• Clarity, Honesty, and Contracts
• Clarity and Honesty are the foundation of future
  agreements
• Build your contracts together
• Contracts are easier to amend as relationship
  grows
• Contracts eliminate misconceptions
• Define timeframes
• starting dates and length of engagements and
  renewals
• Contracts must work for both parties

10
Like any relationship

• The underpinnings are the same
• Trust, respect, communication, flexibility,
  responsiveness, honesty
• Relationships built on trust will be long-term
• Deliver on your commitments
• Accountability is paramount
• Give each other a chance to address mistakes
• If the relationship is worth keeping, work at it
• Relationship and mutual benefit will grow

11

• Bill Terry
• 845.437.7221
• witerry_at_vassar.edu
• Steve Fredette
• 518.292.6523
• sfredette_at_tagsolutions.com
• www.tagsolutions.com