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CAUCUS Blog

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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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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Attack self to win!

Attack self to win!
Process or system weaknesses can cause a Customer lots of damage or cost a lot of money. Discovering and repairing your weaknesses in advance are essential to prevent such damages or loss of money. One helpful way to such discovery is: Attack yourself to win; or, Test your defenses; or, Do a self-Audit. Another way to...
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