Tasks

Activities & Remarks

i / e

anticipated timelines
(if to be managed by internal resources exclusively)

1. Provider spotting

Internal Alignment

• Define the needs & desires
• Spot / consult with internally accountable persons
• Define a budget assumption (it will be subject to change)
• Screen the market for potential partners
• Contact those you’ve got on your shortlist (suggesting 3-5)
• etc.

i

varies broadly

assume about 4 – 6 weeks at a minimum

CDA signature

Sign CDA (s) if sensitive information will be exchanged with the potential partners

i / e

A new Secrecy Agreement (1-4 weeks)

2. Provider(s) assessment(s) including due diligence

Evaluation

• Elaborate providers capabilities & capacities
• Evaluate their financial stability
• Schedule perform, evaluate audits and due diligence steps [after which you may have to start your selection process again]
• Standardize, develop and document steps & key indicators for future selection processes
• etc.

i / e

Up to 6 months, rarely below 4 months

3. Negotiation Phase

Preparation

Develop or have templates at hand for

• Specifications
• Cost proposals
• Any kind of contracts

i

Ongoing (at the beginning – you can also use vendor templates)

Specifications

Collate specifications into one overview deck that allows you easy comparison & differentiation.

i

Contract

• Prepare
• Negotiate
• Conclude

If available consult with Legal & Compliance early enough to agree on what is required to make your project a success.

i / e

• A new Master Service Agreement 3 -6 months
• A Work Order around 6-8 weeks
• A Change Order / Amendment approx. 4 weeks.

Deliverables

• Elaborate and specify in close collaboration with your vendor.
  (We never see the full picture & can overlook important details.)

Know what you need and be diligent to document what you need to get to your milestones.

i / e

varies broadly

Financials

• Ask -depending on the total volume to be spent- for more than one quotation (recommendation : 3)
• Compare them for details and differentiators and find out what causes them (don't worry about unit fees at this stage. Different providers use different pricing models and may combine several aspects in a different way. You need to get to understand it).

Up-font payment - if requested it should be ideally linked to something that costs the provider money up-front. Try to stay below a certain percentage (7.5 % are mostly reasonable)

Financial “Cap / Ceiling” – consider one of up to 10-20 % and define & agree under which circumstances it can be touched.

Financial outliers – challenge them as a last step, before you grant approval. By nailing down what you NEED, you will deliver „savings“ and stay below anticipated budget (20% on average).

i

Considered at provider selection and/ or at negotiation phase

Fine- print

It is there for a reason, and if you can’t sort it out during negotiations and you can’t live with it, cross the vendor out from your list and walk away. However, if you can, consult your advisor prior to walking away.

i

Considered at Contract Conclusion

Milestones

• Ensure breakdown of fees and define deliverables to be provided at pre-defined milestones.
• Invest sufficient time to detail all deliverables as specific as possible.
• Involve the ultimate project owner to obtain endorsement that deliverables are defined sufficiently so no surprises occur when service performance is not as expected.

i / e

Considered at negotiation phase

Sign off

• Have a Secrecy Agreement signed before you disclose any confidential information.
• If you need to start working immediately and cannot wait for contract to be negotiated,

a) Get a Letter of Intent and

b) Work in parallel on the final contract version, and finalize once specifications have been confirmed.

i / e

Considered at provider selection and / or at negotiation phase

Total

If you are very good and have the capacities ~ 6 months

More likely 9 – 12 months

4. Maintenance

Internal Reviews

Watch it and schedule frequent internal reviews from scratch and throughout the project.

Make sure nobody spends for “nice to haves”.

Set up a formal process for changes to be agreed upon.

Set up a process to check progress as agreed upon vs money spent.

Set up a formal process of accepting deliverables.

Control invoices

(Be aware that quite a few invoices may need revision.)

i

Ongoing throughout performance

Amendments & Renewals

Agree upon a contract review circle

Some collaborations require continuous adaptations and depending on the complexity of the projects it may be difficult to keep control of change orders put in place. Therefore, consider agreeing on an end date or date for contract renewal.

(That way you regain project and spending control.)

i / e

Conclusion

Wrap up

Compare what was agreed upon vs. what was delivered in total. Then have a final invoice with an overview breakdown (outlining provided deliverables and actually invoiced and paid costs).

i / e

approx. 4-6 weeks

Final output

Consider that one for any (more precise) future prediction.

i