The Honeymoon is Over: Managing Vendor Relationships After the Deal

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Welcome back, brave souls, to the ongoing circus that is Third-Party Risk Management! We’ve journeyed through the initial chaos of vendor vetting and the wild guessing game of risk assessments, and now we’re venturing into a territory where things get really interesting: managing vendor relationships after the deal is done. That’s right—today’s show is all about what happens after you’ve signed on the dotted line and the honeymoon phase with your vendor comes to a screeching halt.

The Reality Check: Post-Signing Blues

So, you’ve selected your vendor, conducted a risk assessment (with varying degrees of confidence), and now you’re ready to kick back and let them work their magic, right? Wrong. The reality is that the real work begins after the ink has dried on that contract. You see, managing a vendor relationship is a bit like marriage: it starts with promises, optimism, and maybe a little blind faith, but quickly moves into the nitty-gritty of daily life where things can get messy, fast.

At first, everything is sunshine and roses. Your vendor is responsive, enthusiastic, and seemingly perfect. They meet deadlines, they deliver quality work, and they keep you informed every step of the way. But then, as time goes on, you start to notice the little things. The response times get longer, the quality starts to slip, and suddenly, you’re wondering if this is the same vendor you fell in love with. Spoiler alert: it’s not just you—this happens to everyone.

The Communication Breakdown: Silence Isn’t Golden

One of the first signs that the honeymoon is over is the dreaded communication breakdown. In the early days, your vendor was all ears, ready to jump on a call at a moment’s notice. But now? Now, getting a response feels like trying to get a straight answer out of a politician. The emails slow down, the updates become sparse, and suddenly, you’re left in the dark, wondering what’s going on behind the scenes.

But here’s the kicker: poor communication is often a precursor to bigger problems. It’s the canary in the coal mine, signaling that things might not be as smooth as they seem. Whether it’s due to overextension, internal issues, or simply a shift in priorities, a vendor that stops communicating effectively is a vendor that’s on the verge of letting you down.

The Performance Slump: From A+ to C- in Record Time

Remember when your vendor used to exceed expectations? When they were so proactive you almost had to tell them to slow down? Those days can quickly become a distant memory as performance starts to slump. Maybe it’s a missed deadline here, a lower-quality deliverable there, but before you know it, you’re dealing with a vendor who’s gone from A+ to C- faster than you can say “escalation.”

This performance slump often happens because vendors, much like students after the first few weeks of a new school year, start to lose their initial enthusiasm. Maybe they’re juggling too many clients, or maybe they just got comfortable. Either way, you’re left dealing with the fallout, trying to figure out how to get them back on track without turning into the client from hell.

The Escalation Game: How to Play and Win

When things start to go south, you’ll find yourself playing the escalation game—a high-stakes round of “who’s going to blink first.” You’ve got two choices: either you let the issues slide and hope they magically fix themselves (they won’t), or you escalate the problem, bringing it to the attention of higher-ups at the vendor’s organization.

Escalation is an art form. Too soft, and the vendor might not take you seriously. Too aggressive, and you risk damaging the relationship beyond repair. The key is to strike a balance—be firm, be clear, and be prepared to back up your concerns with evidence. And remember, in the escalation game, documentation is your best friend. Keep track of every missed deadline, every broken promise, and every piece of subpar work. You’re going to need it.

The Reality of Managing Vendors: Constant Vigilance

So, what’s the secret to managing vendor relationships after the deal? Constant vigilance. That’s right—you can’t afford to take your eyes off the ball. Just because the contract is signed doesn’t mean the hard work is over. In fact, it’s only just begun. You need to keep your vendor engaged, hold them accountable, and maintain an open line of communication. And if things start to slip, don’t be afraid to escalate the issue and demand better.

The honeymoon might be over, but that doesn’t mean the relationship has to fall apart. With the right approach, you can keep things on track and ensure that your vendor continues to deliver value to your business. But be warned: managing vendor relationships is a never-ending circus act—one that requires skill, patience, and maybe a few juggling balls.

In my next post, I’ll dive into the world of Continuous Monitoring: Spying on Your Vendors (Legally, of Course)—because if you think managing vendors is tough, wait until you try to keep tabs on them without turning into Big Brother. Stay tuned, and remember: in the world of TPRM, the show must go on!

See you in the next act!