Experience Base: Vendor Negotiation

29.01.2010

The key, he says, was support from the board of directors on down. That was invaluable when overeager vendors attempted to go above Dinterman to get the contract. "We were able to manage this by enlisting strong executive commitment to the RFP principles, including a clear set of engagement rules, a balanced scorecard approach and a fully transparent process that was tough but fair," he says. "In the end, those that attempted to bypass the process hurt their chances rather than improving them."

Dinterman's biggest concern was balancing his desire to hammer out every detail and his responsibility to get the deal done in time. "In large contract negotiations like this, parties can spend many months and sometime years--not to mention dollars--attempting to discuss and resolve every nuance," he says. Dissecting the process into shorter, distinct phases and holding potential partners to the iterative process made that easier, especially given Dinterman's own stressed schedule. "This infrastructure project is a major initiative, [but] it is just one of several efforts underway, all vying for my attention," he says. "I had no choice but to develop my ability to discern when to trust the team and when to dive into the details."

Stephanie Overby is a Boston-based freelance writer.