Secrets of a Vendor

KIRK HOAGLUND

Principal Consultant and CEO

Clientek

kirk.hoaglund@clientek.com

clientek.com

Topic: Technology

I’ve been running Clientek for 17 years, now. We’ve provided technology services to hundreds of customers of every size and in nearly every market. We’ve always insisted that business relationships should be completely transparent. There are no secrets here: you are trying to make money and I am trying to make money. Let’s do it together.

So let me come clean with a few details that will help you and I and others like me work better together.

Buy First Quarter in Fourth Quarter The best tech service firms have sold out their capacity for fourth quarter by about now. They’ll be able to take on some new work by being creative with staffing, but they are starting to look at first quarter of next year. And, as always, they are nervous about their pipeline. They want to start seeing some real potential for early next year. So prices are soft and deals can be made more quickly when you are shopping for IT projects slated to start in January. Shop when the deals are better.

Be Careful What You Ask For Service firms desperately want to please their customers, especially the clients they are working with right now. It is about making money, but it also about philosophy. No one runs a service firm unless they genuinely want to please their clients. So when you ask them for something, they will want to make it happen. Be sure it is what you want. And be sure to talk with them honestly about what they can deliver. When you are both realistic, you get better results.

Don’t Micromanage Your Vendor Although it sounds awfully self-serving to suggest that you ought to let your vendors manage themselves, it is important to remember for a few reasons. If they are good at what they do, then they are good at this. Let them do their jobs. Nothing shows the quality of a tech service firm more than their ability to manage your project. If they aren’t good, you’ll find out much more quickly this way and you can cut them loose before real damage is done. And it is a little like telling the chef at an expensive restaurant exactly how to cook your meal. If they do take your advice and the meal turns out bad, whose fault is it? When they cook it and it turns out terrible, you stop visiting that joint! Count on them to be good and hold them to it.

Renew Your Vows Regularly Regardless of the duration and size of your project with the vendor, they should be selling themselves to you on a regular basis. If their invoices don’t make it clear what they’ve accomplished, bring in that account rep for a detailed explanation – it’s your money. In project work, regular status meetings and reports are a part of doing the job. But that is more about tactical execution. You need to hear more than that, and often. Yes, it opens the door for up-sell, and you’ll need to hear that. But any good relationship should be constantly refreshed with reminders of why it is good for both parties.

2010-04-26 00:00:00 -0500