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CAUCUS Blog

Answers that really matter!

Answers that really matter!
Every RFP must include Requirements based on at least 3 kinds of ANSWERS. IT Procurement must get Requirements from Stakeholder ANSWERS and also, via Stakeholders, from the Sales Rep ANSWERS. IT Procurement must get What If ANSWERS from the Stakeholders and, if needed, also from the Sales Reps themselves. You are assigned to handle a very...
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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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New role for IT procurement

New role for IT procurement
IT acquisition is most successful when IT, IT procurement, and the affected business units are all aligned with each other in policy and procedures, processes, and sharing of essential internal data. How IT procurement is perceived by IT and affected business units will directly impact how willing they are to share information and align themselves...
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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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Termination for Convenience – what use is it?

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

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!

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!

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

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

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.

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!

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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