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Getting the most from Strategic Sourcing, Vendor Management, Supplier Development, and Contracts
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it’s not
enough.
Still trying to manage
Provider Performance using
Contract Terms?
6 Ways You Need to Track Provider Performance Getting the most from Strategic Sourcing, Vendor Management, Supplier Development, and Contracts
© Vessment, LLC See It In Action at VESSMENT.com Connect with us: [email protected]
The Provider’s key personnel are your key personnel. These talented individuals labor day-by-day on special initiatives that directly
impact your customers and you.
So your performance monitoring needs to change as well.It’s too often that the contract’s required reporting metrics are status ‘green’, yet
you’re dissatisfied with the Provider’s performance.
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But which measurement areas matter most? It’s about relationship building with your Providers as partners who seek to meet
and exceed your expectations.
We’ve found six measurement-critical themes These really make a difference and need to be the foundation of every Provider’s
performance scorecard.
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Provide a Response to each QuestionThere are six areas that require definition and can form the foundation of a Provider’s performance
scorecard.
Determine Quantitative or Qualitative FocusDecide if you will require a Quantitative or Qualitative response for your Provider’s scorecard. Common
examples for provider management, vendor management, and contract management include:
Quantitative: Metrics, Incentives, Penalties, Resources, Cost Savings, Cost Avoidance, Time Savings,
Quality Adherence to Standards, Compliance, Customer Satisfaction.
Qualitative: Operational Review Meetings, Communication Cadence, Dialogue, Education and Training,
Ease of Completion, Risk Avoidance.
TEMPLATE INSTRUCTIONS
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Step 1:
Step 2:
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1. STRATEGYStart with a Strategic foundation.
A common mistake is having a combative relationship with your suppliers and vendors.
That’s the opposite of what you want.
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Question Response Quantitative? Qualitative?
How can the Provider share in your
vision?
How can the Provider align
objectives with yours?
How can the relationship be a win-
win for mutual benefit in
productivity, profitability, and
customer satisfaction?
To meet your needs for the Provider’s service…
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2. PROCESSAddress the method and manner of the Provider’s performance.
As the Provider is a key part of your operation, reliability is key.
Use of quality management principles impacts their performance consistency.
Question Response Quantitative? Qualitative?
When is it expected that the
Provider follow specific routines or
procedures?
How will the Provider address issues
and make process corrections?
How will you both incorporate
process improvements and
recommendations?
To meet your needs for the Provider’s service…
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3. METRICSClarify what you need from your Providers and measure it.
It’s risky focusing only on service levels that simply mandate meeting contractual obligations.
While you’re micromanaging to the Provider’s SLAs, you’ve missed best practices.
Question Response Quantitative? Qualitative?
Are quality thresholds defined and
understood by the Provider?
Are parameters set for measuring
meaningful contributions to achieve
quality?
Are there metrics for progress
tracking that enable course
correction?
To meet your needs for the Provider’s service…
4. ACTIONSSecure the appropriate talent to take action.
No doubt, the Provider’s top talent led the charge to win you as their client.
But is that same talent working for you now?
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Question Response Quantitative? Qualitative?
Which sets of in-role skills and abilities will
the Provider’s team need?
Can you describe situations that will require
the Provider’s staff to demonstrate unique
intellect and insight?
When will you expect the Provider’s talent
to be actively involved in the business
process?
To meet your needs for the Provider’s service…
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5. MATURITYObtain effective delivery of what is promised.
Effective delivery is more than just a passing audit of volume and turn around times.
Work was done, but at what price?
Question Response Quantitative? Qualitative?
How will you communicate about
operating issues?
What intangibles show the Provider
successfully implemented their
service?
How can the Provider’s resources be
involved in greater benefits to the
organization?
To meet your needs for the Provider’s service…
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6. LOYALTYDecide if you’d work with the Provider again.
It’s common to gauge your company’s performance based on customer loyalty to buy from you again.
With your performance ultimately relying on Providers in strategic functions, it’s critical to gauge loyalty to the Provider.
Question Response Quantitative? Qualitative?
How will you judge seamless service
and improved business continuity
with solution Providers?
What counts as Provider value-
adding capabilities that improve your
performance?
What’s needed to build consistency,
trust and loyalty with a Provider?
To meet your needs for the Provider’s service…
Great strategy deserves great execution.
It’s the synergy that realizes goals in a sustainable,
repeatable and meaningful way.
We founded Vessment on a vision to extend
beyond the obvious and prepare clients for the
future. We’re passionate about guiding leaders to
adopt tools and resources that are easy to use,
trusted, and reliable for transforming businesses.
Our team constantly works on innovative
solutions, fresh concepts, and new technology to
assist clients in designing and executing their
unique strategy, producing superior solutions that
optimize resources, time, and attention.
Connect with us at Vessment.com
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VESSMENT DELIVERS PERFORMANCE ASSESSMENT
RESULTS IN REAL-TIME DASHBOARDS. WITH ALL
THE INFORMATION YOU CARE ABOUT IN ONE
PLACE, YOU MAKE DECISIONS FASTER, EASIER,
AND CONNECTED TO BUSINESS RESULTS.
