How to learn to love your System Integrator

Protecting your Business – leveraging the best from your SI

One of the things I hear the most from businesses who are working with system integrators - we just don’t talk the same language.

One of the things I hear the most from system integrators and the more wider outsourcing industry - the customer doesn’t understand us.

So simple – the way to be successful on both sides of the implementation divide is communicate. Problem solved. If only it was so easy!

Communication is the key to it all, but it comes as part of the package and other elements need to come together as well. Its all well and good a great communication between client and vendor, but if nothing is being delivered then goals are still not being met.

So what is the point of failure and how do you avoid hitting it when software development outsourcing?

To do so, means actually going back to the original RFP stage and perhaps taking a different approach to the process at the beginning. The resulting outcomes will cascade through what should be a successful and productive relationship.

Selecting your Vendor

These days there is very little to differentiate between the myriad of suppliers; expertise, rates, track record and resource availability are fairly basic comparators but limited as tangible differentiators. If you are talking to a supplier about a key skill then they will have carried it out before, they will have expertise and they will be priced competitively. None of these will prove whether the supplier is suitable for you. Look beyond the glossy power point, the slick sales pitch, the ‘structured cost models’, the hospitality on the requisite India site visit and focus on the key people you will be dealing with on a daily basis. Can you work with them and importantly do they really understand your business and its goals? Are they articulate and knowledgeable? Are you hearing what you want to hear or are they challenging your thought process? Negatives are good – you want them to deliver your vision through their expertise and that doesn’t necessarily mean doing it all your way.

Challenges

As a customer and a business you know what you are trying to achieve. But is it documented and articulated exactly the way the board sees it? Are there any vagaries or unknowns? Have the vendors noticed this, have they challenged you on it? There is a rising trend in customers at the moment to believe the SI should be providing thought leadership – but the reality is this should never be seen as an excuse for not having your own vision and plans. SI’s are there to integrate your new system into your business – not to take over and dictate how your business should operate. Your vendor should challenge and stimulate thought and ideas, draw on experience, expertise and ideas but only you know your business. Your role is to drive these ideas forward – if your vendor has to navigate through your internal company politics to obtain decisions and direction then they aren’t able to focus on achieving contractual commitments and goals.

Managing The Vendor or Managing the Project

An increasing trend in customers is to assemble an internal team to manage the SI and leave the project management to be run by the SI’s team. That’s all well and good but inevitably the project is change the business not run the business. If you are relying on the SI to manage your project for you, how are you going to trust and communicate upwards the information you are being given? Your energy and that of your internal team is better spent imbedding into the project team and being part of the deliverables. That way your decision making process improves through a closer knowledge of the daily activities, issues are highlighted sooner by your own business experts and your reporting, programme and project governance is more rigorous and structured with authoritative delivery to your stakeholders. Work with your SI to structure your engagement and embed key resources to more manage the project and less manage the SI – trying to manage the SI invariably leads to cost overruns, a deterioration in relationship and missed milestones – it becomes a distraction and consumes time on both sides counteracting the inevitable point-scoring. Focus on the goals and the milestones and bring in expertise to harmonise the overall project structure.

Upselling

Internally vendor’s account managers have targets that they need to meet, utilization and billing predominately. Rather than view negatively the whole sales process, use this advantageously towards both your business and your cost model. Structure short term deals for resources or additional work, whether change control, or staff augmentation to tie in with your account managers targets. Don’t disregard opportunities for your vendor; working in tandem will lead to a more harmonious working relationship. Be honest and upfront though, open relationships are more productive and successful.

That brings us back to the beginning statement about communication – work with your SI, be involved and open, make decisions and you will be rewarded with a successful and productive relationship.

In future articles I will delve deeper into specific areas of vendor management and draw on examples from previous engagements as well as highlighting what your SI needs to do for you.