VENDOR RELATIONSHIP & CONTRACTING PROCESS
EQUIPPING YOUR ORGANIZATION TO HAVE SUCCESSFUL TECHNOLOGY IMPLEMENTATIONS & HEALTHY LONG-TERM VENDOR RELATIONSHIPS
Striking a balance between the best interests for your organization and your technology vendor is essential to having a productive relationship. We often make reference to client-vendor and other important technology relationships as “marriages.” Technology programs and software platforms often evolve into ten – or twenty-year relationships for your organization. These “marriages” with vendors or suppliers can become unproductive, but replacing a core technology platform represents a high replacement cost in time, effort, and dollars and is highly disruptive. Establishing a fair agreement from the beginning sets the stage for a multi-year “marriage” that will dictate how flexible, productive and cost-effective your organization is for many years to come.
You need the vendor’s tools and services to build the technology foundation that runs your business. Vendors need your business. In order to close a deal, they often make promises they may not be able to deliver; this can develop into a spirit of distrust, or worse.
Your organization will invest a great deal in these projects and software and will be dependent on their success. It is important to ensure that they start well, run well and end well, within a timeline that aligns with your needs and at a cost that fits within your budget. By leveraging the experience and knowledge of FPOV, you will make your vendor projects a success and cultivate healthy and productive vendor relationships.
The VENDOR RELATIONSHIP & CONTRACTING PROCESS (VRCP) was developed by FPOV with a team of technologists and legal advisors to equip you to look out for your organization’s best interests and establish excellent agreements from the start. It is designed to set up your team and your organization for the best possible outcome.
WHAT YOU RECEIVE
With your purchase of our process, we will deliver a collection of best practices, checklists, guidelines, and sample legal clauses. In addition to this, the team at FPOV will provide access to a two-hour training session and an additional 12-14 hours of hands-on coaching and guidance as you navigate your first deal. This will teach you how to apply the process and equip you to use it in the future. Your purchase also qualifies you for a “ride along” from your consultant with your first negotiation.
A COMPREHENSIVE PROCESS
Our exclusive licensed content addresses installed software, Software as a Service (SaaS), and Professional Services agreements, and helps you navigate the relationship from the earliest phases, through negotiations, selection, and service delivery. To keep up with the evolving state of the technology landscape, our team is continually improving things. In order to keep you apprised of changes and emerging best practices, we will release regular periodic updates to the process and licensed content.
WHY IT IS IMPORTANT?
Technology vendors negotiate many agreements each year while most business organizations may conduct only a handful of large technology agreements over multiple years. Most contracts are originally constructed by the vendors’ lawyers, and they are not meant to be balanced in terms of who they protect. By design, they are written to give the technology vendor the edge.
This process will equip your team to enter into negotiations on an equal footing, and thereby foster healthier vendor relationships. It provides clear and fair language to establish the best interests of your organization at the outset of the relationship. The VRCP process provides a framework which, if followed, will ensure more consistently productive and mutually beneficial technology vendor relationships.
AN EXCERPT OF THE TOPICS ADDRESSED IN THE DOCUMENT COLLECTION
GENERAL CONTRACTS: BEST PRACTICES, CHECKLISTS + CLAUSES
- FunctionalityService Level Agreements (SLAs)
- Cloud SLAsPrimary Term & Renewals
- Uptime / Response Time
- Termination Clauses
- Maintenance / Upgrades / Fixes
- Release Planning
- Support / Issue Resolution / Account Manager
- Services / Resources
- Named Resources / Costs
- No Change Option
- Role and Responsibilities
- Work plan / Dates – Project
- Management Process
- Methodology Used
- No Hire Clause
- Change Control Process
- Acceptance Process
- Fees / Increases
SOFTWARE AS A SERVICE + INSTALLED SOFTWARE: BEST PRACTICES, CHECKLIST + CLAUSES
- Disaster Recovery / Failover
- Backup / Recovery
- Data Ownership & Transfer
- SOC 2 Audit Reports
PROFESSIONAL SERVICES AGREEMENTS: BEST PRACTICES, CHECKLIST + CLAUSES
- Named Resources / Roles & Responsibilities
- Covered period (from-to)
- Named Resource Replacements
- Intellectual Property Rights
- No Hiring of Each Other’s
- Tax Liability
- Specific Scope of Work
- Specific Deliverables / Outcomes
- Steps / Process / Plan
- Deliverables Turnover
- Issue Resolution
- Acceptance Process / Project
- Change Control
- Rates / Expenses
- Payment Terms