Red Flags and Warning Signs: When Your Vendor Starts Acting Like a Toddler

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Welcome back to the TPRM circus! After mastering the art of continuous monitoring, it’s time to focus on what all those vigilant efforts are meant to uncover: the red flags and warning signs that your vendor is about to throw a tantrum—or worse, implode entirely.

If you’ve ever dealt with a toddler, you know the signs: the quiet before the storm, the sudden mood swings, and the inexplicable refusal to do something they were happily doing just yesterday. Well, vendor relationships aren’t all that different. Vendors, much like toddlers, can be unpredictable, temperamental, and prone to causing headaches when you least expect it. The key is knowing when to intervene before things spiral out of control.

The Silent Treatment: Communication Breakdowns

One of the first red flags in any vendor relationship is the dreaded silent treatment. If your once-communicative vendor suddenly goes radio silent, it’s time to raise an eyebrow. Maybe they’re just busy, or maybe something more sinister is afoot—like a project falling behind, or worse, a potential breach they’re scrambling to cover up.

When communication breaks down, it’s often a sign that your vendor is struggling. They might be avoiding the truth, hoping to fix things before you notice, or simply overwhelmed by internal issues. Either way, silence is never golden in TPRM. It’s your cue to start digging deeper and asking the tough questions.

Missed Milestones: The Domino Effect

Missed deadlines are like the domino effect in action—one missed milestone can quickly lead to another, and before you know it, the whole project is on the verge of collapse. If your vendor starts missing deadlines or consistently delivers late, it’s a clear sign that something is off.

Perhaps they’re understaffed, maybe they’re overcommitted, or it could be that they’ve bitten off more than they can chew. Whatever the reason, missed milestones should never be brushed aside. They’re a flashing neon sign that your vendor relationship needs immediate attention.

Quality Deterioration: From Gold to Garbage

Remember when your vendor used to deliver top-notch work that made you feel like you’d hit the jackpot? If that quality has started to slip—whether it’s a decline in the caliber of deliverables, cutting corners, or an increase in errors—you’re dealing with a serious red flag.

Quality deterioration is often a symptom of deeper problems within the vendor’s organization. It could be financial strain, staff turnover, or simply a lack of motivation to keep up the standards they initially set. Regardless, it’s a warning sign that you can’t afford to ignore.

Scope Creep: The Hidden Red Flag

Ah, scope creep—the silent killer of projects everywhere. This is when your vendor starts pushing the boundaries of the original agreement, adding extra tasks, extending deadlines, and generally making the project more complicated than it needs to be. While it might seem like a vendor being proactive, scope creep can actually be a sign that they’re losing control over the project.

Scope creep often indicates that the vendor is trying to cover up inefficiencies or is struggling to meet the original requirements. It’s like a toddler asking for just one more cookie, and then another, and another—it’s a slippery slope that can lead to bigger problems down the line.

Financial Red Flags: When the Numbers Don’t Add Up

Keep an eye on your vendor’s financial health. If they start asking for payments in advance, delay invoicing, or offer unexpected discounts, it might be time to worry. Financial instability is one of the biggest red flags in a vendor relationship—it can lead to rushed work, corner-cutting, or even the vendor going out of business entirely.

Just like a toddler suddenly getting quiet (because they’re up to something), a vendor’s financial shenanigans can indicate that they’re in trouble. Make sure you have a clear understanding of their financial position and be wary of any sudden changes.

How to Manage Vendor Red Flags: Intervene Early

So, what do you do when you spot these red flags? The answer is simple: intervene early. The longer you wait, the worse the situation can become. Address communication issues head-on, re-evaluate project timelines if milestones are being missed, and have frank discussions about quality expectations.

If necessary, bring in senior management to escalate the issue and consider whether it’s time to start looking for an alternative vendor. Remember, the goal is to catch these issues early, before they turn into full-blown crises that could derail your entire project.

But what happens when those red flags escalate into full-blown disasters? In my next post, we’ll dive into “When Vendors Go Rogue: Handling Third-Party Breaches and Failures,” where I’ll explore how to manage those vendor-induced catastrophes that can leave your business reeling.

Until then, keep those eyes peeled for red flags, and remember: in the world of TPRM, vigilance is your best defense against toddler-like tantrums from your vendors.

See you in the next act!

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