What Vendors Don\'t Want You To Know About Software Selection & Contracts
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Advice, lessons learned, and strategies for erp software selection and contracting. From HRMStrategies 2011 Conference, Washington DC.
What Vendors Don\'t Want You To Know About Software Selection & Contracts
- 1. 165What Vendors Don't Want You to Know About System Selection and ContractsMike Harmer & Diane DiamondHR Workforce Solutions & Analytics ManagersIntermountain Healthcare, Inc
- 2. Diane DiamondMike HarmerCurrent Responsibilities- Core HRMS including benefits tracking and absence management- LMS- Student Tracking- Employee Health system- EAP systemEducation- Masters Degree16 years HRIS experienceCurrent Responsibilities- Analytics- HR Data Warehouse- Talent Management- Web DevelopmentEducation- Masters, Brigham Young University14 years HRIS experience
- 3. Intermountain HealthcareOne of the top-ranked integrated health systems in the nationBased in Salt Lake City, Utah
- 4. Nonprofit
- 6. 23 hospitals
- 7. 150+ clinics, surgery centers and physician offices
- 8. Homecare and hospice services
- 9. Insurance company with 500,000 membersPresentation AgendaExperience and PhilosophyPreparationRFP TipsDemo SecretsThe Prioritization MatrixContract Negotiation StrategiesImplementation
- 10. HR Systems ExperienceOn-PremiseHRMS SuiteCore HR
- 13. Payroll
- 14. Self Service
- 19. Surveys
- 23. Recruiting
- 24. Performance
- 25. Succession
- 26. Compensation
- 27. Career DevelopmentHRIS Philosophy du JourPhilosophy#1: If its available and feasible, buy#2: If not, build Current FavoritesSaaS
- 29. Vendors VisionsCurrent PeevesDelivered Analytics
- 30. Weak data export abilities
- 31. Poor Technical PedigreesPreparationResearchSaaS, On-Premise, or Build?Define the ShortlistThe Prioritization Matrix: Step 1
- 32. Preparation: Research3rd Party AnalystsIndustry TrendsPress ReleasesCompany OwnershipAcquisition HistoriesMarket ShareManage Internal Politics
- 33. Preparation: Saas, On-Premise, or Build?
- 34. Preparation: ShortlistClearly define the Deal BreakersCost (base on estimates)FunctionalityDelivery method(s)Finding VendorsTradeshowsAnalyst ResearchCustomer networks
- 35. Preparation: Manage PoliticsClear, Written Project CharterWho has final decision authorityDefine teams (selection, implementation, steering, etc.)Identify guiding documents and timelineAlign with key stakeholders hot issuesKeep stakeholders fully informedUse the Prioritization Matrix
- 36. Preparation: Prioritization Matrix Step 1
- 37. Preparation: Prioritization Matrix Step 2
- 38. RFP TipsCommunicate priorities, but not rankingSell your organization to the vendorFront Page of RFP Terms & ConditionsInclude RFP response in contractUse customers contract (be realistic)Specify 3rd party tool detailsYes/No answers AND explanationAsk vendor to respond to analyst reviews (specific or open-ended)
- 39. Vendor Demo SecretsDont string the vendors along - include only the vendors youre serious aboutDont let the vendors know who theyre competing againstDont just look at end-user experience consider admin and configuration tools too
- 40. Vendor Demo SecretsDo balance your audience with both strategic and task-level peopleConsider the point of view of those rating the demos and understand their biasesDo consider legacy systems in demosDo combine the buy and build options in the analysis and demos
- 41. The Prioritization Matrix: Step 3
- 42. The Prioritization Matrix: Step 4
- 43. Contract Negotiation StrategiesConsider fixed vs. variable cost implementationsSell yourself to the vendor why do they want you as a client?Separate the Lead for contract negotiationsConsider having a Blackout PeriodNegotiate any major gaps as hard deliverables
- 44. Implementation TipsPay attention to the details let the vendor know you are counting penniesAsk for detailed invoices that include all the tasks your paying for
- 45. Implementation TipsIf Internal IT is involved, create a little competition to combat resistance or delays.Build internal skill set the consultants wont always be there.
- 46. Q & ADiane DiamondDiane.diamond@imail.orgMike HarmerMike.harmer@imail.org
- 47. For more information on this or any other HR technology topic go towww.ihrim.orghttp://core.ihrim.org
- 48. IHRIM needs your feedback!Please complete a session evaluation for165What Vendors Don't Want You to Know About System Selection and ContractsThank you!
Editor's Notes
- #9: 3rd party Analysts biases? history? Relationships? Career aspirations?Press Releases Worst source of analysis, but theres good information hiding there lies, damn lies, and statistics, and theres press releases Mark Twain will continue to support both products mutually beneficial merger mergerCompany Ownership workday and peoplesoft what is the owners exit strategy? public vs privateAcquisition Histories do they build or acquire? are they acquiring a competitor or a technology? how well do they integrate?Market Share is this fish going to survive fishing season?
- #11: Deal breakers cost (estimates call to vendors for approximate estimates functionality modules in/out delivery methods do they offer the methods you want? example: saas for tmFinding vendors tradeshows analyst research worth the cost they know history, industry, track deals, etc customer networks often find information that is not avilable anywhere else what is this really like to own?
- #12: Project Charter teams AND ROLES demos who gets votes, who gets to recommend? How many from each involved area?Align with key stakeholders hot issues highly engaged execs will speed up problem resolution critical for contract negotiation phase important for managing internal project obstaclesKeep stakeholders fully informed Deadline visibility Risk management
- #16: RAW NOTESDo not string vendors along for comparison. Your company will have bad reputation that will hurt future. (Consultants and salespeople move around a lot in this industry) Do not let vendors know who their competitors are Consider point-of-view of those rating the demos (data entry people will look for easiest data entry). Balance audience with strategic & task-level people For demos, include the administration and system configuration Combine buy and build options in rfp analysis and demos Consider including legacy system in demos - puts pressure on vendor for contract renegotiation
- #20: RAW NOTESFixed vs variable cost implentations - depends on your team's experience and vendor's configurability/expertise. example of our TMS implementation Negotiate major gap fixes into contract as hard deliverables - BEFORE selecting final vendor Separate lead for contract negotiations (good cop bad cop) Blackout period Sell yourself to vendor - leader in industry, who follow you, why would landing your account benefit the vendor?
- #21: RAW NOTESRead invoices and ask for more detail. let them know you are counting pennies. Ask for details on invoice internal IT: create competition (beat monopoly) with consulting option - always available