Monday, December 22, 2014
If you sue your vendor, who loses ?
The project had all the trappings of success beyond belief; everyone was of the opinion that this would be the project that will change the way the industry uses IT, at least for this specific use case. The vendor proclaimed success in the global markets with large companies and leaders in the industry. Published case studies were flourished and accepted on face value. The CEO claimed to know a member of the board which added to the halo around the company and derived credibility; and thus the high cost project got off to a ceremonial start.
A team of business users were dedicated to the project along with IT; the vendor CEO himself ran the workshops and requirement gathering. He almost knew the subject and talked the language of the business; any shortfalls were disguised under the barb of the users’ ignorance of global trends. He churned out voluminous and complex documents that did not really say a lot and thus remained under discussion and clarification for a long time. Timelines started slipping as he rebuked the users for lack of participation.
Soon everyone wanted to get busy with other work and not be part of the project that had serious communication challenges. Team members wanted to get off and pleaded to their managers to get back to their previous roles. With withering participation evidence continued to stack up against the business with no sign-offs while payments to the vendor continued as per milestones which according to him were achieved. No one challenged the situation afraid to upset the board member with whom the CEO claimed be chummy.
The board member was involved in the project during inception but had gotten off the team somewhere in the middle of the journey after he saw the flamboyant display of expertise. He believed the project was in safe hands and functionality appeared transformative. By the time the noise filtered through to him it was crisis time. He reviewed the situation and was aghast by what he saw; the project appeared irrecoverable and the blame game pointed fingers everywhere. The vendor threatened to stop work and sue for recovery of dues.
A senior member was appointed to review and assess the situation; his maturity and balance were the strengths which were the hallmark of a seasoned professional. He reviewed past credentials of the vendor, current team members from both sides, process of engagement, documentation, project plan, communication, minutes of meetings, allegations on both sides, and deliverables received thus far. He engaged an independent technology consultant to review the efficacy of technology architecture, and solution delivered thus far.
The vendor’s company really had no past or for that matter employees in any number to talk about. It was almost a one man team and his Secretary who had worked on the projects which he had claimed against his name, though only as an external consultant to another company. Effectively there was no depth in the company that made lofty claims on global case studies. The relationship with the board member was barely an acquaintance; no one had really asked the board member about the level of camaraderie and assumed rather than risk asking.
The documentation was sketchy and inadequate, technology framework in line with generally accepted industry trends, the solutions delivered partially useable specific use cases. Users had not read through the volumes that described the process automation and functionality; their ignorance evident in the remarks and clarifications. Compliance to schedule of meetings and reverts was far from satisfactory thereby leaving gaps which were exploited by the vendor to his advantage. The absence of business leadership in the project was glaring.
The vendor sued for un-cleared dues and the company sued for non-delivery; compromise was ruled out. They decided to go into arbitration lasting over 3 years; in the interim neither could use the limited solutions created. Business continued to use their legacy solution while the vendor CEO had collected many times the value of the deliveries made. The industry continued to evolve with newer solutions whereas the leadership step taken by the company failed to bring any benefit because of lack of due diligence, ownership and perceptions of team members.
The above case is based on reality though has been exaggerated for impact. Suing each other kept everyone with a bad taste and frustrated experience. With passing time the relevance faded away and it appeared to be a futile exercise. A collective failure that could have been averted easily ! When customers sue their vendors or vice versa, what is the cost of a win to either ? Time, effort and opportunity loss cannot be easily quantified especially when the industry is evolving at a rapid pace. It is better to break free and move on !