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About: Elgin Ward

Recent Posts by Elgin Ward

Why RFP for unneeded info?

Why RFP for unneeded info?
An RFP can gather tactical or needed commitments AND strategic commitments. Strategic commitments may be outside the current project scope. A wise Customer uses RFP resources wisely to gather both tactical or needed commitments AND strategic commitments. After working with your Stakeholders and other members of your Advisory Team, you have come up with about 100...
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Negotiating the hopeless case

Negotiating the hopeless case
A Vendor will make little or no concessions to a Customer if the Vendor believes the Customer has no other alternative. Words from Procurement alone will not likely be enough to create the uncertainty needed to convince the Vendor to make concessions. Vendors are more likely to make concessions when the Customer Business Unit aligns...
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Beware the “mutuality” pitfall!

Beware the “mutuality” pitfall!
Vendors frequently try to use “mutuality” to make objectionable contract provisions more acceptable to Customers. Customers should carefully evaluate each use of “mutuality” to determine its IMPACT on the Customer vs the Vendor. The Customer should reject any use of mutuality that disadvantages the Customer in favor of the Vendor. 1. Vendors often try to use...
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Vendor vs Customer – Whose Contract Management is Better?

Vendor vs Customer – Whose Contract Management is Better?
Both Customers and Vendors have a huge stake in Contract Management with a lot of money at risk. A Vendor will attempt to manage each Contract to its advantage. A Customer will succeed best when it first manages its own Customer Obligations and then those of the Vendor. Not all Contract Management is the same. We...
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Mirror, mirror on the wall…

Mirror, mirror on the wall…
Without the benefit of a mirror to gaze in, we might miss the opportunity to improve ourselves or our performance. If those we seek to serve are asked, they may be willing share with us a perspective we have overlooked. Rather than taking offence at the comments of others, we should use such comments like...
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Taming the Maverick Manager

Taming the Maverick Manager
Alignment between negotiator and the Stakeholder Manager is important for successful negotiations. Sometimes a negotiator is assigned to represent a Maverick Manager who doesn’t want to be represented, who won’t take advice, and insists on inserting himself into the negotiations. Rather than argue with a Maverick, a negotiator will be most successful focusing on what...
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Vendors view SOWs as Siloed opportunities to win!

Vendors view SOWs as Siloed opportunities to win!
Customers are wise to approach negotiation of Master Agreements with a strategic, enterprise-wide view, for both the present and the future of the Customer. But, Vendors can change pricing and other terms and conditions by encouraging Customers to focus narrowly and tactically on the SOW without regard to the whole Customer enterprise, present or future....
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Vendor Management by the numbers!

Vendor Management by the numbers!
Vendors spend a lot of money to acquire, operate, and maintain CRM systems to help manage how Customers “feel” about the Vendors, their products and services. Without investigation and analysis of Vendor performance, a Customer may be relying blindly on “feelings” in dealing with its Vendors. Investigation and analysis of Vendor performance may help a...
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How Service Levels can improve IT procurement

How Service Levels can improve IT procurement
Vendors perform better when Service Levels are used to focus their attention and   change their behavior. Even an IT Department may perform better when Service Levels are used to focus their attention and change their behavior. Service Levels for IT Procurement can be one way to effectively engage and align internal Stakeholders in the Technology...
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Who is Stakeholder’s real Partner?

Who is Stakeholder’s real Partner?
A partnership is where 2 persons share profits and losses. Stakeholders may be taught by Vendors to call them partners to promote info sharing by Customers; but, Vendors don’t share their profits with Customers and always try to escape paying for any Customer losses. The real Stakeholder Partner is IT Procurement that seeks to help...
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Using Vendor “NEEDS” to improve negotiations.

Using Vendor “NEEDS” to improve negotiations.
The greatest negotiation leverage comes from knowing and leveraging the “NEEDS” of the opposing party. A Vendor spends a lot of time learning and shaping Customer “needs” to guide a Customer into buying solutions from the Vendor. Customers succeed best in negotiations if they learn and leverage the “NEEDS” of Vendors like the need to...
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Why should Customers license their data?

Why should Customers license their data?
In Telecom, Cloud service and other agreements, Vendors will often seek ownership or other improper use rights in Data of the Customer. Customers can prevent Customer Data from being lost or improperly used if the Customer takes appropriate pro-active steps. Customer Data can be protected by establishing exclusive ownership in the Customer and limiting Vendor’s...
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Beware of false signs!

Beware of false signs!
It is important that the Customer, NOT the Vendor, control the Customer’s procurement process. If not properly managed, Vendors will take orders from and make contracts with Customer employees who have no EXPRESS AUTHORITY to purchase. Customers must take specific actions to prevent Vendors from making any contract with Customer employees who do not have...
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Two scenarios for every procurement

Two scenarios for every procurement
Salesmen make representations based on an IF THINGS GO RIGHT scenario and often fail to address the IF THINGS GO WRONG scenario. Vendor contract templates don’t generally contain detailed Salesman representations on what the Vendor product will do IF THINGS GO RIGHT and hardly ever address the IF THINGS GO WRONG scenario. The Procurement Professional...
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Watch out for Trojan horse SOWs!

Watch out for Trojan horse SOWs!
Vendors are highly motivated to improve their profit and risk position in every SOW. Left unchecked, Vendors can and often will include in SOWs Trojan Horse wording to undermine benefits negotiated by the Customer in a Master Agreement. To defeat Trojan Horse wording, Customers must diligently review SOWs and should also include in each SOW...
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Three Keys to Failsafe Service Levels

Three Keys to Failsafe Service Levels
Service Levels succeed when they are designed and carried out to FOCUS ATTENTION and to CHANGE BEHAVIOR of the Vendor. Vendors sometimes are able to subvert Service Levels by influencing Executives with pleas for one-time forgiveness, or just giving small, inconsequential credits. By having Service Levels with the right purpose, pro-actively getting Executive support in...
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What are your IP goals?

What are your IP goals?
IT purchases are always impacted by IP. Vendors sell limited IP today in order to sell more IP tomorrow. If the Customer doesn’t have clear and broad IP goals, he will likely be purchasing according the Vendor’s IP goals. “What do you mean, IP?” you ask.  You know, IP, as in Intellectual Property. And you say,...
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AUDIT – Customer’s multi-purpose TOOL

AUDIT – Customer’s multi-purpose TOOL
It is important to have the SW Vendor and Cloud Service Provider commit in a written agreement to implement and carryout best-practice network and data security. Naked promises are not enough. SW License and Cloud Service agreements MUST include AUDIT provisions allowing the Customer, its third party designee, and government regulators to AUDIT the Vendor...
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RFP – have you the courage to win?

RFP – have you the courage to win?
The RFP is critically important tool Customers can use to maximize COMPETITION to get the best price, best terms and conditions, and best concessions. Some Vendors will try to COMPETE with the RFP process by attempting to subvert it. For a successful RFP, IT procurement must exercise courage and stand up to all attempts to...
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What does Procurement sell?

What does Procurement sell?
To win Customer business, Vendors sell NEEDS to Customer Stakeholders. The Vendor which sells best wins! To get necessary PROTECTIONS for the Customer, Procurement must sell the NEED for protection to the Customer Stakeholders. Vendors sell AGAINST the need for PROTECTION. This competition may be won by Procurement or by the Vendor, depending on who...
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