Due Diligence and Ongoing Monitoring

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  • 1.  Calling References

    Posted 09-23-2019 12:41 PM
    I know when you ask a vendor for references, of course they are going to give you references that see them in a favorable light.  I'm curious to know what types of questions you ask your references as part of your due diligence process?


  • 2.  RE: Calling References

    Posted 09-23-2019 12:58 PM
    I only used references as an absolute last resort for exactly the reason you mentioned - selective pruning of whom they choose to supply as references. If I did call references, I generally tried to probe about how cooperative they were in difficult situations and how forthcoming they are when issues arise. I'd be interested in having other people whime in with their experiences as well. Thanks!
    Original Message


  • 3.  RE: Calling References

    Posted 09-24-2019 07:32 AM
    Hello!
    ​I pulled these from a document I cobbled together over the years.  See if any seem like they would be helpful to you:

    1) Call the references at a time when you think they won't answer the phone, either at lunchtime or before or after work hours. Then leave a message identifying yourself and the purpose of your call and ask that the person call you back if they feel the vendor was exceptional. Note the time you called and how long it takes the person to call you back (or if they call back). That, in and of itself, is a clear indicator.

    2) Ask the reference to describe their relationship with the vendor. You'd be surprised how many will identify a personal relationship. "Oh, Mary! We worked together at a previous company, I have known her for 15 years..." On the other hand, they may strictly have a professional relationship, which might allow you to get a non-biased reference with solid information.

    3) Ask the reference to give you a general idea of the services the vendor performed for them. Understand the scope of services you wish to hire the vendor for and match it up with the services provided to the reference. Make sure there is common ground.

    4) Do a little soul searching to bring to light any pet peeves you may have and address them with the reference. Make note of anything the reference says that reminds you of things you liked from previous vendors that worked well for you.

    5) Ask the reference to identify a time they were less than pleased with the vendor and ask how the vendor handled the situation.

    6) What were you hoping to achieve by hiring the vendor's services? Do you feel you achieved them?
    7) What would you wish had been different about your project or your relationship with the vendor? If you could have changed one thing, what would it have been?

    8) How long did it take before you saw the results of the project? Did the vendor stay on schedule?

    9) How did you know when the vendor succeeded at what was promised?

    10) How well did they understand your needs?

    11) How did they handle conflict-resolution?

    12) What was their response time to your questions or requests?

    13) Did the vendor exceed your expectations?

    14) Is there anything else I should consider before I hire this vendor?

    15) Would you hire this vendor again? Do you have plans to expand services with them in the future?



    ------------------------------
    Jenn Wilkinson
    Vice President
    Strategic Vendor Management
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    Original Message


  • 4.  RE: Calling References

    Posted 09-24-2019 08:59 AM
    I find references​ most helpful in RFP scenarios.  I always ask for 3 recent wins and 3 recent losses from our industry of similar size and complexity and that those references should exclude M&A conversions/deconversion, then I remind the vendor I'm asking the same from their competitors.  We frequently get the same references but from different vendors.

    This generally allows us to pursue 4 lines of questions.

    Why they left the previous provider. This one nearly always gives good background on what to be wary of. 

    Seek to learn why they chose the current provider, who they included in their RFP, etc. This one provides a lens into their primary motivations for change, often they differ from the Why we left story.

    Inquire about the conversion process (when was the conversion, what went well, what could have gone better, what they wish they knew then that they know now, etc.).

    How the relationship going now.

    Original Message