Why The Need For Performance Reviews?
Performance reviews answer the simple question — "How is the vendor actually doing?"
By conducting periodic performance reviews, you can...
- Identify vendors that are performing poorly or below expectations
- Spot trends — has a vendor's performance gotten worse over time?
- Address problems with the vendors early in the process
- Be better prepared at contract renewal time
Aren't We Already Doing That With Risk Assessments & Due Diligence Checklists?
Not really. Risk assessments classify each vendor's importance to your company, so that you know where to focus your on-going vendor management efforts. Due diligence reviews collect all the information on your vendors to ensure that they are capable of performing the expected role with your company.
Performance reviews are your vendors' "report cards" — a periodic review of the quality of their work compared to expectations. They are also referred to as performance scorecards, performance monitoring and performance audits.
What Should You Be Monitoring?
The information you'll be reviewing may vary by the type of vendor and their role in your company, but in general you'll be measuring...
- Quality of service
- Quality of support
- Quality of communication
- Client/customer satisfaction
- Actual value vs. expected value
A Real-World Example: Your Web Hosting Provider
Let's assume that your company's website is critical to your company — you rely on it as your primary communication channel to your customers and is a strong reflection of your company.
Sample performance questions you'd ask each review could be:
- Was the website down and inaccessible at all during this review period?
- If yes, was the issue addressed to our satisfaction?
- If there were any support tickets filed, were they completed quickly and in accordance with our SLA?
- Did any of our customers report website issues to us — such as bugs, slowness, browser issues?
- Has the vendor addressed past issues we've raised to them?
How Can VendorRisk Help?
Allows unlimited review templates
You may need multiple performance review templates depending on:
- Risk level — a longer and more detailed performance review for high-risk vendors
- The type of service/deliverable the vendor provides — such as a technology-specific performance review
VendorRisk lets you create as many review templates as you need, and each one can be as many questions as you need.
Automates the scheduling of reviews
By entering a "next review date" and the review frequency, VendorRisk will notify you ahead of time that a review is due. When you complete the review, it will then automatically set the "next review date" to the appropriate date in the future.
Tracks progress of each review
Every review not yet completed will have a completion percentage between 0 and 100%, based on the number of items marked as completed within the review. By having a percentage clearly visible, you can quickly view all outstanding reviews and their likely time to completion.
Supports the review process
If your company policy is that all completed performance reviews need to be approved by a review committee (even if just one person), then you can establish review committees in VendorRisk and when a performance review is marked as completed, then the review committee will receive an email with instructions to view the completed form. The committee can then approve or reject the review.
Receive automated email reminders for...
- Upcoming performance reviews
- Performance reviews that need to be approved by you
- Performance reviews that were just approved/rejected
Examples of reports you can run, save & export...
- All performance reviews conducted in the past 3 months for high-risk vendors
- All performance reviews with a status of "In-process"
- All completed performance reviews conducted by the Marketing department in the past 6 months