September 29, 1997

Tips On Partnering With Vendors By Richard Adhikari efore searching for a vendor to partner with, check your corporate charter or articles of incorporation. Not all companies can enter partnerships with vendors. Once you've established that partnering is allowed, make sure you know exactly what you want. That may sound obvious, but it's not. "It amazes me when we go to organizations that have entered into selective partnering, and they're fuzzy about their requirements even though they've spent half a million dollars on the project," says Ann Laffaye, a VP and service director at Gartner Group Inc. "You must take time to figure out what you want and who's going to do what, and get very strong requirements and d esign." Next, be sure to pick a compatible partner. To be sure, this is more art than a science. "It's sort of like a marriage," says Gene Stiefel, VP of information services at Hunt Manufacturing Co. "The key thing is make sure the partner you pick is compatible with you." Important factors for Stiefel are company size, company culture, and interpersonal relationships between those involved on both sides. "It's one thing to have a contract, but the trust and understanding you have between the partners is more than a contract," he explains. If your organization is one of a group that seeks to partner with a software vendor, clarify just how much influence you'll have over the finished product. "When you pay money to be a partner, you want a lot of influence and input into what the software will ultimately look like," says Joseph Simpson, manager of business resource planning at Andersen Consulting. "Where there are many partners, you can't always influence the software development as much as yo u'd like." Next, draw up as comprehensive a contract as possible with the software vendor. You must get down on paper what the vendor is committing to. Also, always set deadlines. Projects can go on forever without a delivery date. Finally, include in the contract some way to ensure compliance with its terms. The ability to force the vendor to do what it promised is crucial for success. Return to story " Partner Power " Back to News in Review Send Us Your Feedback Top of the Page

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