7. Making the Final Recommendation
 

Makign recommendations deals with negotiating and recommending the final vendor.

This phase is where significant savings can be made for the organization. Having the right negotiation strategy for software and services and understanding how the vendors price and negotiate is the key to achieving these savings.

This phase includes:

MyKnowledge: Gives some background and insight into the negotiation process and some considerations with respect to the negotiation.

MyApproach: Provides the basis for developing the negotiation strategy.

MyDelivery: Provides checklists to finalize the contracts.

MySignoff: Online or downloadable signoff sheet to ensure proper completion of the phase.

 

Key deliverables from this phase are:

  1. Final recommendation on system and related vendor.
  2. Contract with abovementioned vendor/s.
  3. Completed signoff checklist.

 

Phase objectives

On completion of making recommendations you should have:

  1. Clearly identified the preferred vendor;
  2. Successfully completed negotiations and finalized the outcomes;;
  3. Prepared to begin the implementation.

 

Phase risks

The risks of not completing this section include:

  1. Significant additional potential cost, due to poor negotiation outcomes;
  2. Quality of implementation, due to poor scope and resource clarity.

 

This is it; all things should be ready to go now.

Please work through each section before proceeding to the next section:

 

Important to note:

Content under each section of the KADS method will differ, based on the phase being worked on. Initially the focus is on learning, moving to delivery and signoff during the life of the project.


What you need to know

The contract negotiation is what determines to an extent the success of the project. Ensuring you are covered legally for vendor or software shortcomings, as well as getting the right price is all part of this phase.

 

1. The following document gives some guidelines and suggestions on how the making the final recommendation process for preferred vendor should proceed, as well as an overview of considerations for negotiation.

Name: Making recommendations

Priority: 1

Type: READ

Phase: Making recommendations

Estimated time: 10 minutes

Length: 5 reading pages

 

Develop your approach and plans

 

2. Use the editable User file below to develop your negotiation strategy. Also, review the risk and issues logs and discuss any other requirements with the project team, steering committee and project sponsor. Include in the editable negotiations strategy document below.

Name: Negotiation strategy

Priority: 1

Type: User

Phase: Making recommendations

You should now be clear on how and what you will negotiate with the vendor, as well as the process.

 

Delivering the approach and plans

 

3. In delivering the negotiation, follow the process documented in making recommendations READ document.

At this stage you should have achieved the following:

  • Communicated to unsuccessful vendors
  • Communicated to the successful vendors
  • Arranged for the vendors to conduct additional reasonable scoping as required
  • Prepared the contract negotiation document
  • Met with the vendor to set expectations

Remember, everything is negotiable, and given the fees involved with some of these projects, there may be numerous different negotiation strategies used by the vendor to sign the deal on their terms.

Ensure you are clear on what is required, have a clear negotiation strategy, and stick to the requirements and strategy. The taste of a bad contract is far stronger and lasts for longer than the meal that celebrates it.

 

4. The following contract checklist highlights common areas and requirements, which would by now be familiar with to assist with the contract signoff. If there are additional requirements you have identified, please add them for completeness.

Name: Final checklist

Priority: 1

Type: User

Phase: Evaluation

 

You should now have obtained the relevant approvals and signed the contract. The next step is implementing the system.

 

Sign off on the Phase


5. Update the project plan and project milestone document developed in <2. Planning the project>. Report as scheduled.

 

6. Complete checklist when you have completed the phase. Please ensure you have ticked all the boxes as yes before you proceed, and print the checklist result and file on completion.

Phase 7 Making recommendations: Completion checklist

  • Have the resources from the vendor been identified and guaranteed for the project?
  • Have the internal resource requirements been confirmed?
  • Has the hardware been clearly specific by the vendor and the order timeline established?
  • Have all customizations been clearly specified, priced and agreed with the vendor?
  • Have all integrations been clearly identified, priced and agreed with the vendor?
  • Has the data conversion approach been agreed, along with confirmed responsibilities?
  • Has the price been negotiated and does it include all the previous points?
  • Has the approach to and requirements for support been agreed and priced?
  • Is the vendor viable and stable?
  • Has legal counsel reviewed the contract, or alternatively been signed off by senior management ot the Board of Directors?
  • Are you comfortable recommending the solution identified?

 

Move onto the next phase when ready [ Phase 8 - Project close ]