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Recent Posts by Elgin Ward

Termination for Convenience – what use is it?

Some contracts contain a provision allowing the Customer to terminate for convenience. Some States require that this provision be exercised in good faith to be enforceable. When properly worded and excised in good faith, a Termination for Convenience provision may help a Customer escape a bad contract or have leverage to negotiate needed improvements. One of...
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Kaizen through positive Hansei

Using a Kaizen process for continuous small improvements can improve both individual and team performance. One effective approach to Kaizen is Hansei or deep reflection on ones performance in a project, whether the project is a success or a failure. Hansei is best done with positive rather than negative or self-critical questions. The Japanese word “kaizen”...
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LOL – no laughing matter!

Vendors use LOLs to minimize their Risk and remove Customer Protections.  The negative effect of LOLs in existing contracts can be avoided or lessened ONLY when they are identified and managed by the Customer. IT procurement may be in the best position to help point out LOLs in existing contracts. Vendors are in business to maximize...
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Misalignment makes for mayhem!

Alignment is required for more than people – policies, procedures, contract templates, etc., all need to be internally aligned in support of the Customer goals. Misalignment among policies, procedures, contract templates, etc., can result in frustration of the Customer’s goals and general mayhem. To be truly “strategic”, Sourcing should assess whether applicable policies, procedures, contract...
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How Sales Reps view training

Vendors invest large amounts of time, money, and other resources in training their Sales Reps. Sales training by Vendors is Lengthy, Frequent, Skill-focused, Goal-oriented, and designed to be highly Motivational. Customers, to be pro-active, strategic and successful in procurement, should also implement procurement training that is more Lengthy, Frequent, Skill-focused, Goal-oriented, and designed to be...
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Why SOWs need creativity

SOWs contain the specific details on Products and Services needed for the business SUCCESS of the Customer. Master Agreements, though necessary, often are too general to address effectively all of the critical specific Requirements in a well-written SOW. IT Procurement and the Customer Stakeholders need to be creative in SOWs in detailing both specific Requirements...
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How Vendor Management can avert crisis.

The unexpected can happened in any contract, despite both parties’ good intentions. Trying to solve a serious contract problem under the breach language of a contract can often be time consuming, expensive, and have extreme negative impacts of the relationship on the parties. A well-run Vendor Relationship Management program can help create positive relationships between...
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SLs – Multipurpose Tool of Choice!

Regardless of how good our business processes are, there are always pain points that need to be improved. IT procurement, working with a broad, cross-functional team of Customer stakeholders, can help locate and document those pain points. Agreement among Customer Stakeholders on what are the pain points can help develop important Requirements, Service Levels, and Remedies,...
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The devil is in the derivative works!

Most, if not all, SW can and will be used in ways that generate what is arguably Derivative Works. Ownership of and usage rights in Derivative Works will almost always belong to the SW Vendor UNLESS clearly specified otherwise in the SW License Agreement. Every SW License Agreement should address this critical issue and none...
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Software Audits: End it write!

During a SW Audit, a vigilant Customer can keep control and gain victories in limiting the Audit to the SW License Audit provisions. If not documented in writing, helpful clarifications and victories gained by the Customer will be forgotten and lost. The Customer should be adamantly committed to preserving in writing all victories from an...
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Software Audits: Don’t lose control!

Customer must not allow itself to be or think of itself as a victim in a SW Audit. Customer will fare best when it does everything it can to control how a SW Audit is conducted. Customer should know SW License Audit provisions completely, insist on a written scoping agreement before the Audit begins, and...
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Software Audits: Beware the bad start!

If a Software Audit is unavoidable, the exact way it is to be started should be clearly defined and specifically limited in the Software license document. No Software Audit of any kind should be started until the Software Vendor has given the Customer formal, written notice in advance. The Customer and all its personnel must...
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Room for improvement!

Purposes of the RFP, such as controlling communication and maximizing competition among Bidders, must be understood and written down. The RFP process must be clearly, simply, and concisely written in a manner adequate to accomplish each of the purposes of the RFP. Written process alone is not sufficient but must be supported by rigorous practice...
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Don’t burn your bridges

In IT procurement negotiations, whether with Vendors or negotiations with internal stakeholders, we can be absolutely certain that our present actions will have a significant future impact on the human relationships involved. Because we are human, we may be offended by the personality or misdeeds of another person and we may be very tempted to...
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Prepare for SW MADness

SW Vendors are predictable and want to structure SW deals to be able to charge multiple times for the same SW licenses. Customers should anticipate the possibilities of MAD or government reorganizations and possible multiple charges for the same SW licenses. The Customer should draft and negotiate SW licenses that are transferable in whole or...
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Don’t overlook the EXCEPTIONS!

Ideally, the Customer should develop sufficient negotiation leverage to enable removal of all provisions oppressively in favor of the Vendor. Failing such removal, the Customer should identify each provision that is oppressively in favor of the Vendor and what EXCEPTIONS might apply. Then the Customer should negotiate into the Contract specific written EXCEPTIONS for each...
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Who is our Audience?

Some IT procurement professionals might think they have done their job if they negotiate a deal that saves the Customer a lot of money and includes terms and conditions that protect against most major risks. These things are important. But, here’s an important question: What duty, if any, does the IT procurement professional have to negotiate...
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Kaizen is our duty!

Every IT procurement process, like all processes, has a need for continuous improvement. Process improvements do not accidently occur but require careful study, planning and execution to be realized. IT procurement professionals have a duty to use the concept and principles of Kaizen or Continuous Improvement to constantly change for the better their contracting process,...
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How important is alignment?

The duty of IT procurement is to help its internal Stakeholders consider the ALTERNATIVES before aligning with a particular vendor or solution. Sales Reps seek to be the first and best at identifying and influencing the Customer Decision Making Team. To succeed, IT procurement must proactively involve itself early, when the Sales Rep first engages,...
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Two Pitfalls of SoftWare Training

Training is an absolute necessity for successful use of many Software packages or Cloud services. Training is often a profit center for Software Vendors and Cloud service Providers. Customers can and should use their negotiation leverage before signing initial contracts to get Vendors to commit at no additional charge to train the Customer’s End Users...
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