How do you manage vendor changes in your projects?

1 Define clear change management processes

Before working with a vendor, it's essential to establish a clear and mutually agreed change management process that outlines how changes will be requested, approved, communicated, implemented, and tracked. This process should be documented in the contract or statement of work (SOW), detailing the roles and responsibilities of both parties in initiating and approving changes, the criteria and methods for evaluating the impact of changes on scope, budget, timeline, and quality, the format and frequency of change requests and change orders, the escalation and resolution procedures for disputes or disagreements, as well as the reporting and monitoring mechanisms for tracking changes and their outcomes. Having a clear change management process will help to avoid misunderstandings, confusion, and frustration when changes occur. It will also ensure that both parties are aligned on expectations and deliverables.

2 Communicate changes promptly and effectively

Communication is essential for managing vendor changes in your projects. You should notify any changes that affect your vendor immediately, and vice versa. Utilize the right channels and tools such as email, phone, video conference, or project management software to communicate changes. To ensure effective communication, be clear and concise about the nature, reason, and impact of the change. Additionally, provide supporting documentation or evidence for the change like a change request form, a revised SOW, or a revised project plan. Ask for feedback and confirmation from your vendor on the change. Address any questions or concerns they may have. Monitor the progress of the change implementation and update them on any issues or risks that may arise. Make sure to document and archive all communication related to changes for future reference and audit purposes. Prompt and effective communication will help you and your vendor maintain trust, transparency, and collaboration throughout the project lifecycle.

4 Manage changes proactively and adaptively

Managing vendor changes in your projects is an ongoing process that requires proactive and adaptive management. Establish and use KPIs and metrics to measure the results, conduct regular reviews with your vendor, implement corrective or preventive actions to address any deviations, celebrate successes, and learn and improve from experiences. All of these efforts will help you and your vendor deliver the project successfully and efficiently, while also enhancing your vendor management skills and competencies. Monitoring and controlling the performance and outcomes of the changes, as well as adjusting plans and actions accordingly, are essential for proactive and adaptive management.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?