Enterprises report having the best business relationships with vendors they view and treat as partners. As partners, enterprises are clear about business requirements and expectations, and vendors are attentive and proactive toward fulfilling requirements and meeting or exceeding expectations. When partnership practices are fully implemented, relationship equity is achieved. Partnership does not occur organically, though; it requires mutual vision, alignment, and collaboration led by a Vendor Management Office (VMO).
What Our Data Says
In a recent AOTMP® Research study, only 43% of enterprises reported having an extremely or very mature vendor management practice. This finding indicates that opportunity exists for 57% of organization to elevate vendor management to a new level of performance. The key element in leveling up is partnership.
VMO Impact on Success
Enterprise VMOs play a significant role in business relationship success. The VMO is ultimately responsible vendor performance. To that end, it is imperative that the VMO understands business requirements, how each vendor satisfies those requirements, and the measures that illustrate how each vendor performs against objectives. The VMO is an advocate for the business and an advocate for the vendors; if vendors don’t perform, business requirements will not be satisfied. The VMO builds and maintains the partnership bridge between the business and the vendor.
Elevate your vendor management game by dedicating resources to become experts at building partnerships. VMO resources should immerse themselves in understanding business-side requirements and vendor-side commitments. They should chart resolution paths to partnership challenges and own resolution results. They should advocate for relationship equity and champion business results delivered through partnerships.
If you’re like most organizations and need some help making vendor management improvements, AOTMP® has the tools, training, and expertise to ensure your success. Enroll in our Managing Vendor Performance & Accountability Course to start upgrading your technology management relationship practice today!