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About: Elgin Ward

Recent Posts by Elgin Ward

Finding and filling HOLES

Finding and filling HOLES
There are always HOLES in our processes, all need improvement. Such HOLES can be difficult to see, especially if we are too satisfied with current outcomes. Using Hansei or deep reflection, IT procurement  can find and fill the HOLES as part of Kaizen or a continuous improvement program. I. Ask yourself, how are things going with...
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Alignment alone won’t do!

Alignment alone won’t do!
Internal alignment of Stakeholders at a Customer does not by itself guarantee a successful outcome. If Customer internal alignment is based merely on the desires or aspirations of a Stakeholder without regard to best-practice principles, the consequences may be dire! Alignment is most beneficial when the Customer’s Stakeholders have all identified, agreed upon, and aligned...
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Training isn’t one and done!

Training isn’t one and done!
Some if not many Cloud Services may be usable ONLY if the Customer employees have been trained. Cloud Providers may charge a lot of money for training and training may be a significant profit center for them. Before signing and while still having negotiation leverage, wise IT procurement professionals explore with internal Stakeholders possible future,...
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Why SOWs fail!

Why SOWs fail!
The Vendor MUST be responsible for 2 things: a) providing the required RESULTS; and, b) managing Vendor’s personnel and resources necessary to produce the RESULTS. The Customer MUST NOT be responsible for results; rather, for 2 things: a) a small, specific set of Customer Obligations (like access to the Customer facility, to computer networks, diagrams,...
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Look outside the box for better VRM!

Look outside the box for better VRM!
A Contract must be managed effectively for a Customer to get what it is paying for. There are many important aspects of the relationship between a Customer and its Vendor that cannot be controlled or managed by Contract Management. A Customer with an ongoing relationship with a Vendor should, in addition to Contract Management, use...
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Positive incentives can improve Service Levels!

Positive incentives can improve Service Levels!
Vendors required to pay Remedies for missing Service Levels often want the right to earn a Bonus for exceeding Service Levels. Vendors often work harder with a better attitude to achieve a positive reward than to avoid a negative consequence. Even if Customer policy or tradition prohibits giving a Vendor a monetary reward for exceeding...
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Else – little word, big impact!

Else – little word, big impact!
If a SW license grant does not adequately cover the needs of a Customer before the SW License Agreement is signed, the Vendor will demand more money to license for additional needs. Using the five (5) Ws can help IT Procurement ask good initial questions to learn what a SW License grant should cover. Asking...
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Non-SW audits

Non-SW audits
Bad provisions in Contracts can really hurt Customers. The 3 to 5 worst provisions should be identified and kept OUT of contracts currently being negotiated. Internal Audits can be used to pro-actively find in existing Contracts these 3 to 5 really bad provisions, and FLAG the Contract to ensure removal or modification of the provision...
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Use CHOICES for a more powerful RFP.

Use CHOICES for a more powerful RFP.
RFPs can be written narrowly, in a yes-or-no fashion with few CHOICES. It is possible to add CHOICES to the RFP, to require the Bidders to bid on multiple Alternatives, Options, or Phases. Customers can and should add CHOICES to the RFP which will increase opportunities for a Bidder to “get its foot” in the...
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Get credible or fail!

Get credible or fail!
Desirable Vendors resist making concessions without a credible threat to losing a deal. Part of a credible threat must come from the Customer’s developing ALTERNATIVES to the preferred solution. A threat can be made more credible if the Customer researches and uses to its advantage a Vendor’s weaknesses. Your IT procurement group sends out an RFP...
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Using the “Neg-to-Pos What If filter”

Using the “Neg-to-Pos What If filter”
You are putting together a Contract document for your Stakeholders. How can you be sure that every business requirement is covered by an appropriate Performance Warranty and Remedy for failure? Allow me to introduce the “Neg-to-Pos What If filter.” We all know about “What if” questions. They can be negative or positive. Say you are buying an...
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Tickler file – an essential K Management tool!

Tickler file – an essential K Management tool!
Contracts often contain renewal dates and other critical deadlines. Failure by the Customer to promptly meet critical deadlines can be extremely costly to the Customer. Contract Managers SHOULD establish, maintain, and effectively operate a TICKLER system to ensure critical deadlines and other dates aren’t overlooked. Consider Scenario One (1). Here’s a painful situation. The Customer has...
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How might kaizen produce better SOWs?

How might kaizen produce better SOWs?
Vendors are motivated to draft SOWs in a manner that shifts RISKS away and over to the Customer unless IT procurement catches and renegotiates dangerous wording. Kaizen, or small, continuous improvements, is a process improvement approach that can engage all parties in finding and applying ways to improve an ongoing process. Kaizen can be applied...
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We don’t do standard vendor!

We don’t do standard vendor!
Vendors align their contracting and selling practices with their motivation to MAXIMIZE their profits and to MINIMIZE their risks. This Standard Vendor approach often ignores the business needs or requirements specific or unique to the Customer. The Customer must contract to ensure its needs for Protection are met; hence, the Customer should NOT do standard...
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Should Vendors pay for Customer training?

Should Vendors pay for Customer training?
As Remedies, Vendors sometimes offer things that cost them less than cash and may even have minimal value to the Customer. While Training by Vendors may be valuable, it may also be a poor Remedy and may be a sales opportunity to further entrench the Vendor. Training as a Remedy is of greater value when...
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SW Audits – why be a victim?

SW Audits – why be a victim?
SW Vendors use audits to seek additional revenue from Customers, especially in economic downturns, non-renewal of MX, or slow up in buying of new SW licenses. Vendors will be less likely to audit a Customer who appears obsessively focused on SW license compliance. Proactively engaging a SW Vendor usually costs less than an Audit. Software Audits...
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Best IP defense is a strong offense!

Best IP defense is a strong offense!
Negotiating only defensively or tactically is usually reactive. Defensive, tactical or reactive are not strategic, or proactive, do not anticipate future possibilities, and leave the Client exposed to many expenses and delays that might otherwise be avoided. A wise SW Licensee will proactively go on the offensive, take a strategic view, and negotiate numerous IP...
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SLAs are about the “WHOs”!

SLAs are about the “WHOs”!
The creation, negotiation, implementation, and enforcement of SLAs take time. CIOs, other senior management, and operation personnel may resist allocating resources to SLAs unless there is evidence the right WHOs are receiving beneficial results. Creating, negotiating, implementing and enforcing good SLAs can save money and solve problems more economically than under contracts with no SLAs...
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VRM – When are general feelings not enough?

VRM – When are general feelings not enough?
“Soft” or general feelings have limited ability to justify allocation of budget or spending by the Customer. More effort is required to obtain “hard measurable” data but the impact on budget allocation and spending decisions is much greater. VRMs, looking to justify additional resources, will be more successful by obtaining “hard measurable” data rather than...
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How SOW Riders can help

How SOW Riders can help
Historically, by training, and by inclination, Vendors have written and will continue to write some or all of the SOWs for Customers. Vendors will often write SOWs in ways that dilute Customer protections in the Master Agreement. By developing a standard form preprinted Rider and mandating it be attached to each SOW, Customers can go...
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