A supplier has been buying training and the employees being trained are still falling short of the mark, although the contract is being satisfied.  The customer is trying to decide how to respond.

This issue arises quite often.  Few negotiators know how to deal with the issue, or so feedback suggests.  So what are some steps you can take to deal with this negotiation scenario?

Ask questions about the results that you can expect when your employees are trained.  

Discuss the concept of performance-based contracting and find out if the supplier is receptive to the idea and whether the supplier has used it on similar projects previously

Speak with the supplier’s references about results that they realized.

Talk about the results they are seeking and ask the supplier to suggest a strategy for achieving these results.

Explain the goals that are to be supported with the training.

Include performance expectations (and incentives/penalties) in the contracts.

Measure results according to a plan that is established in the contract. 

Discuss the results that are achieved.  If the results are below expectations, work with the supplier to improve the results.

Build relationships with the supplier so that you both understand what is expected.

Accept the situation as it is and replace the supplier with another firm who is (hopefully!) more suitable to meet your needs when the contract expires.

Filed by Coleen Davis at 1:35 pm under Business Acumen, Business Tips, Negotiations, Planning Tips, Solving Problems, Training