Some of the key questions when managers move to a supplier management role;
How do they "manage" a number of people from an external organisation to ensure that they deliver against an agreed service level agreement and a set of key performance indicators?
What are the implications of managing a situation where your dependency on the supplier is at least equal to their dependency on you? This can be especially true where business critical services have been totally outsourced?
What are the differences between changing the targets and performance standards for an external supplier compared to the same exercise for in house staff? The latter can be handled via the performance review process; the former may involve contract changes, with possible budget implications.
What skills do your managers have in managing the supplier and the customer relationship? In outsource contracts the manager has the responsibility to deliver to the customer, be they internal or external via the effective management of the supplier.
How do disputes get resolved without resorting to waving the contract in the supplier's face and accusing them of breach of contract? Remember, particularly where the supplier is providing a critical service there is normally a lengthy contract and a high degree of dependency.
How skilled are the managers at planning and managing supplier review meetings? Yes there are similarities with running staff meetings, but there are also fundamental differences.
What levels of negotiation skills are required for contract negotiation and for the ongoing negotiation points that need to be resolved during the life of the contract?
How is a manager able to maintain supplier performance during the exit stage of a contract?
What is the value of developing a partner rather than a supplier relationship? What is involved? What is the pay off?
