|
"Empathy" is a word you don't often hear in IT, especially in discussions about supplier management. Yet empathy and respect between buyer and supplier are emerging as important ingredients of CIO success.
The CIO of a major aerospace firm, for example, recalls a moment early in his tenure when his CEO suddenly stopped him during a presentation about the company's technology suppliers. Several times the CIO had referred to these suppliers as "vendors," and the CEO didn't like it. "At this company, vendors are companies that fill candy machines," he snapped. "Suppliers are trusted partners, critical to the success of the enterprise."
This CEO captured the tone of the new world of IT supplier management, one where key IT suppliers are no longer held at arm's length or treated as adversaries. They are teammates or, as one midmarket CIO characterizes them, "soul mates on a journey to the same destination."
In the wake of Sarbanes-Oxley requirements, future-focused CIOs are getting their IT houses in order by tightening up internal IT processes and re-establishing the ground rules with suppliers. CIOs who view their suppliers as a source of value are adopting a hands-on approach to vendor management. "I invest heavily in my key relationships," says the CIO at a rapidly growing midmarket trucking firm. "I participate in [supplier] panels and advisory councils and take advantage of supplier-sponsored CIO conferences."
To understand today's IT vendor management climate, we surveyed executives at 205 companies (75 large firms, 75 midmarket companies and 55 provider firms). We wanted to know whether organizations like yours view suppliers as a source of value to be maximized or an expense to be minimized (see Figure 1). We also asked whether suppliers view their client organizations as a mere source of revenue or as a lifetime annuity to be cherished.
"A CIO's success is dependent on choosing the right suppliers and maintaining a win-win relationship," notes the IT chief at a global apparel company. "I try to turn vendors into key partners," adds the CIO at a logistics firm. "We attempt to educate them on our more strategic directions."
|
