Wai Mun KooPMO Director| Intergraph PP&MSingapore, Singapore
Changing vendor is a common thing as in we do not stick with one vendor forever. However, it is sometimes quite tricky to manage the leaving, probably disgruntled, vendor to avoid any unhappy things to happen (we know how nasty a disgruntled vendor can be). How can we ensure a smooth transition from an outgoing vendor to the incoming vendor without creating too much troubles along the way? What are the DO's and DON'T's to make sure all parties are happy and work cooperatively to achieve the final goals with least friction?
Hope to hear some good suggestions from those who have been there, done that. Saving Changes...
Mark KennyHippo Solutions Founder, Catalyst for Change in Project Management Teams| Hippo SolutionsFranklin, Tn, United States
Having seen both sides of this, my first thought is to be up front. Frustration tends to set in when someone does not know what is happening or why. Be up front with the vendor and let them know your decision and the reasons. Don't be afraid to tell it like it is. I'd like to think (and experience has born out) that most vendors are professional and recognize that change sometimes happens (even if they do not like it). If a vendor does do something "nasty", then you have made a good decision in moving away from them. Saving Changes...
Elizabeth HarrinDirector| RebelsGuideToPM.comLondon, England, United Kingdom
I agree with Mark, it's important to let vendors know why you are leaving. And giving them a chance to put it right can also help. For example, if you are considering leaving because they are expensive, if they want your business and could negotiate on terms, you may be able to keep them if you can reach an agreement.
Having said that, if you are an unprofitable, difficult customer (from their perspective!) they could be glad to see you go, and will work with you. This could just mean that they've chosen not to operate in your industry any more, for example, and that you are no longer a good fit for their company.
Give them lots of notice, try to salvage the relationship if it's worth it, and be generous with your time when ending the deal. Saving Changes...
Wai Mun KooPMO Director| Intergraph PP&MSingapore, Singapore
Mark & Liz,
Agree with both of you that being up front and transparent is important. I have seen people who have been very 'secretive' (who knows? It could be due to character), and only broke the news to the outgoing vendor at the last minute which, somehow, also broke the trust and made a mess out of the transition. Perhaps they think that they are 'smart' to seal up all the information so that they will have the situation under 'control'. However, they missed out the point that no one like to be kept in the dark, and as long as you are doing it professionally and not something unethical, there should not be anything to worry about. So, then what is the point of being 'sneaky'? Saving Changes...
I too agree with Mark and Elizabeth on this. Transparency in such matters is always beneficial in the long run. You don't spoil relationship with the vendors and there is a possibility that the vendor's services may be considered in the near future.
But, we need to ensure before signing the contract with any vendor, that the vendor would require to maintain Confidentiality & Integrity of our company's data/information. Legal Counter-Measures need to be highlighted in case of any breach of information from the vendors. This is a safe-card for the company and an indirect legal pressure on the vendor, incase a disgruntled vendor even thinks of anything close to nasty.
Saving Changes...
Wayne Miller MS, PMPRetired / Volunteer| Conservation OrganizationsPrairie Du Sac, Wi, United States
If a vendor is disgruntled it's very important to understand why. It may have nothing to do with your relationship or it could have everything to do with your relationship. If your handling of the situation contributed to the falling out, then it is likely to be repeated with the next vendor unless the cause is identified and corrected. Besides being unpleasant this will also be costly to your organization. Saving Changes...
Perhaps I can give you a Singaporean perspective. Many of the projects here in Singapore are fixed cost. Hence vendors, under a fixed cost contract and pressure to deliver an IT system can get REALLY nasty about scope and change requests.
The best way I know to contain them is to build up a relationship. Focusing on scope, change requests and contracts will be ok in the short term, but my experience is that it always hurts in the long term. Saving Changes...
Mark KennyHippo Solutions Founder, Catalyst for Change in Project Management Teams| Hippo SolutionsFranklin, Tn, United States
Gary,
Just curious, why are vendors disgruntled about scope and change requests? I understand it may be a nuisance but it is also reality.
Are the projects / contracts not adjusted when a scope and change request is approved so that the vendor is covered?
Mark Saving Changes...
Wai Mun KooPMO Director| Intergraph PP&MSingapore, Singapore
Gary,
The key focus of this topic is managing vendor that the company has decided to replace with a new vendor, not so much on building long term relationship with them. Saving Changes...
If they are that disgruntled I would look at a more assertive approach- speak to your company's legal people, make sure your contract with the supplier is in order and start to enforce it to the letter.
However, I would personally seek to maintain good relations with them, after all you many find in 3-12-24 months time that the replacement supplier cannot deliver on it's salesman's promises at all ( that wouldn't exactly be unusual) and you may need the services of the original supplier to help you deliver some future project successfully. Saving Changes...
Ahmad YahyaCEO| ADAM - Agile Digital Assistant for ManagersPutrajaya, Malaysia
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