Third-Party Accountability

Holding vendors, suppliers, and other third-party contractors accountable can present a challenge, especially when your organization is not their only priority. In fact, priorities between third-party contractors and their client organizations are often in conflict. Of course, customer satisfaction is usually a priority for most third-party providers, which is good—but what’s good for the service provider may not always be good for the service receiver, and vice versa.

For example, let’s assume an organization has outsourced part of its IT function, using a third-party provider to accomplish occasional programming when internal resources are stretched. What the contracting organization wants is superb occasional and immediate programming assistance, whenever they need it. On the other hand, what the service provider wants, ideally, are large predictable and repeatable projects, so it can maximize efficiency and profitability. Consequently, alignment and accountability for results, become serious challenges.

So, if you are a receiver of third-party products or services, how aligned are your expectations with your provider’s strategic priorities? If you say, “Why should I care about that?,” or “When a third-party provider takes a contract, I expect them to deliver,” then you may want to prepare yourself for some disappointment.

To avoid being disappointed by the performance and results of your third-party vendors, contractors, and providers, start bringing them into your expectations chain and applying the Accountability Sequence. Forming expectations is the first step in the Accountability Sequence, which then progresses to Communicating, Aligning and Inspecting your expectations.  These four elements—Form, Communicate, Align and Inspect—present a complete model for how you hold others accountable in a positive, principled way, and that includes third-party vendors.

To begin developing more effective expectations with your third-party contractors—expectations that are both real and clear—make sure you begin by asking, “What do I want to have happen?” Then, continue the process by using the FORM Checklist. This acronym reminds you to apply four crucial elements when forming “key” expectations: Frameable, Obtainable, Repeatable, and Measureable. Returning to our example of the third-party contractor and outsourced programming, Frameable means ensuring your expectations are consistent with your organization’s and the third-party’s current vision, strategy, and business priorities. This will require an open and honest dialogue about conflicting organizational priorities while looking for a viable and mutually-benefiting solution and contract. Obtainable means ensuring that the expectations are achievable in terms of your organization’s and the third party’s current resource and capacity constraints throughout their respective Expectations Chains. No sandbagging, accountability avoidance, or over-promising and under-delivering here. Repeatable means ensuring that the expectation is portable and can be clearly communicated throughout the Expectations Chains of both organizations. No special, unspoken, or sidebar deals wanted. Measurable means ensuring that your organization, as well as the third party provider, can actively and accurately track progress toward achieving the expectations and easily measure the ultimate fulfillment of those expectations. Once the FORM Checklist has helped you and your third-party vendor to become more deliberate and conscious when it comes to establishing mutual expectations, your effectiveness in following through with the remaining steps of continually communicating, aligning, and inspecting your mutual expectations becomes greatly enhanced. To learn more about how to apply the FORM Checklist and the Accountability Sequence, go to www.partnersinleadership.com.