Can a Vendor Management Initiative Influence Organizational Performance?
Can a vendor management initiative influence organizational performance? The concise answer to this question is yes. However, this influence doesn’t occur overnight. Your vendor management initiative must progress through four levels of influence from tactical to strategic to achieve organizational impact. Exploring Info-Tech’s Four Levels of Vendor Management Performance will guide you through your vendor management initiative’s maturation of organizational influence.
The Four Levels of Vendor Management Performance are:
- Basic Vendor Management
- Vendor Performance
- Vendor Management Performance
- Organizational Performance
Basic Vendor Management
Starting with the Basic Vendor Management level, the vendor management team must identify opportunities and execute tactical fundamentals of vendor management. These tactical fundamentals typically include contract negotiations, contract management, spend analytics, and routine sourcing activities.
Monitoring vendor performance is the next level in our progression of influence. The vendor management team needs to perform vendor service level agreement/objectives (SLA/SLO) monitoring with periodic business reviews along with market intelligence/benchmarks to influence the vendors' performance.
Vendor Management Performance
Upon establishing competencies at the Vendor Performance level, the vendor management team needs to perform self-evaluation by examining how well the vendor management team is performing. Measuring the team’s performance in areas such as value creation, the quantity of negotiated contracts, spend addressed, and vendor management return on investment will provide insight into the opportunities for improvement and successful accomplishments to highlight.
The ultimate aspirational level of the vendor management team is influencing their organization’s operational and financial performance. Leveraging the vendor management team’s knowledge and fluctuations in the market place allows the team to influence the organization’s IT strategy and architecture and even the organization’s products and services. The vendor management team’s success in cost reductions, improving efficiencies, and value creation will contribute to the organization’s financial performance.
The graphic below summarizes the Four Levels of Vendor Management Performance explored above.
Four Levels of Vendor Management Performance
A significant amount of an organization’s decisions involves information provided by IT. Thus, a highly competent, experienced vendor management team should aspire to influence the operations and financial performance of their organization by being a business solution architect that is a trusted advisor for IT strategy that drives business value by improving operational and financial performance. Understanding the Four Levels of Vendor Management Performance will establish your vendor management initiative in an optimal position to influence the operational and financial performance of the organization.
Want to Know More?
Manage Your Vendors Before They Manage You
Capture and Market the ROI of Your VMO
Five Steps for Building a Winning Business Process Automation Practice
Automation is not a silver bullet solution to your workforce productivity challenges. Optimization and automation (optimation) must be used together to remove root cause inefficiencies and best use the features and capabilities of your automation solutions.
Twilio Breach and Cloud Security
By exploiting a five-year-old configuration error, a hacker was able to access Amazon’s S3 cloud storage buckets on which Twilio’s code was loaded. As a result, customers were able to unknowingly download the modified code for twenty-four hours.
Qualys and Ivanti Partnership Boasts an Incredibly Robust Vulnerability Management Platform
Qualys VMDR and Ivanti have announced a new partnership dedicated to improving the detection and patching of vulnerabilities. Announced July 30, the Qualys and Ivanti Partnership have already gone live as an integrated component of the VMDR solution.
IBM Raises Price on Software Support; Shoves Customers Toward the Cloud
IBM is changing the terms of its ubiquitous Passport Advantage agreement to remove entitled discounts on over 5,000 on-premises software products, resulting in an immediate price increase for IBM Software & Support (S&S) across its vast customer landscape.
RiskSense Releases a Unified Infrastructure Security Risk Management Program
RiskSense announced on July 13 its new version of the cloud-delivered RiskSense risk management platform. The main draw of the program is its holistic risk calculation across CVEs and CWEs.
Address the Root of Your Vulnerabilities in a Resource-Tight Period
Cyberthreats are omnipresent for any enterprise. Monitoring ingress and egress points while still conducting business is a balance security professionals attempt to strike. Couple this with the continued security issues around remote work during the pandemic, and security teams have their hands full.
CORL Technologies Launches Its Vendor Risk Management Resource Center
Navigating the vendor risk management space, particularly in the current environment that consists of a mix of cloud, managed services, and critical supply chain, is key to ensuring that you don’t inadvertently introduce new risks through this dynamic channel.
Kenna Security Releases Tool for the Custom Benchmarking of Vulnerability Management Programs
On May 26, Kenna Security released its new Prioritization to Prediction Benchmark Survey. This free tool provides organizations with the ability to compare their vulnerability management programs to industry averages Kenna Security has compiled over the years.
Oxial – How Coronavirus Has Impacted Risk Management
From employee management through leadership and communication, increased cyber threats, logistics and operations to post-pandemic planning and risk mitigation, the threat landscape has experienced enormous change. These noticeable shifts force us to consider rethinking and retooling how we address risk.