In order to deliver excellent service to the organization, IT must ensure that the services delivered by key vendors are of adequate quality and meet time commitments. Achieving a high level of service or product delivery from vendors generally requires three components: establishing a set of performance targets with the vendor, measuring performance against these targets, and promptly addressing issues and gaps between the actual and the target performance.
Manage Vendor Performance has three steps:
- Establish Performance Measurement Process.
- Evaluate and Improve Performance.
- Renew, Renegotiate or Terminate Contract.
When you have completed the first two steps, you will have a solid basis for ensuring that the vendor is meeting their obligations and that any issues are resolved in a timely manner. The third step will ensure that the organization maintains contracts only with vendors that deliver to agreed standards.