It was a great journey
working with you and the team to design the solution; the innovative concept outlined
is path-breaking and definitely an industry first. We learned a lot during interactions
and refining the architecture; we are thankful for the opportunity. We have
discussed the project and debated the immense value it brings both of us with
the partnership. Regret, unfortunately we are unable to proceed with the
engagement and would like to thank you for offer; we wish you all the best in
your future endeavors !
Above is the gist of email received by the CIO from one of
the large IT vendors who came up with the best technology solution to the
opportunity. It was not a surprise even though collectively they had invested
over two man years into the project which had the Board’s blessings as well as
eye of the CEO. Just a few months back the leadership team from the vendor had
visited them and provided the right messages to the CEO on their commitment to
the project; he decided to break the news to the CEO – his manager.
The company had lagged behind in some technology solutions
that had given an edge to their competitors; not that it made a significant
difference, it did score brownie points with customers. Solutions in question
were investment intensive and required lot of rigor to sustain; the big players
were always competing on such differences in capability. Global competitive
benchmark required a multiplier on the investment that none had made in the
industry thus far; the company saw this as an opportunity.
So the net was cast far and wide to evaluate best in class
solutions; the laggard reputation preceding the company did not evince excited
responses from the providers. The CIO used all his reputation to nudge them
into action, the serious face put forward by the cross-functional team made up for
the rest of push required. Activity levels rose through the process reaching a crescendo
as they arrived at a well-informed conclusion in an open and transparent assessment
to select the best option for their global aspirations.
Recommendations were presented to the Management and the
Board; everyone acknowledged the thorough nature of the process, metrics and
weightage in the calculations. The project was accorded approval with a fair
budget and the task shifted to financial negotiations which was not perceived to
be a hurdle towards closure. Purchase under the tutelage of the CFO was thus
handed over charge of expeditiously moving ahead to keep the momentum going and
give the company the much needed impetus towards glory.
The shortlisted solution provider recognized the energy
infused into the discussions with necessary approvals sought to strike while
the iron was hot. With global leadership team’s presence, they reinforced their
commitment to the company vision, the project and committed execution with best
of resources. After ensuring comprehensiveness of the Bill of Material, terms
and conditions, clauses defining inclusions and exclusions, Finance/Purchase and
the vendor finally started looking at the numbers and the total cost of
ownership.
They went back and forth from unreasonable to the
outrageous, the game of negotiation began with each attempting to maximize
their value. As time passed by, the business team began to feel uneasy on outcome
of the protracted exercise which threatened to break up the positivity that
prevailed prior to going into the financial discussion. The CEO was dutifully informed
of the ongoing progress as the weeks flowed into months; the impasse was now
also hurting the vendor who had put their best foot forward.
The CIO along with the business head attempted to reconcile
to the situation while impressing on the CFO the need to progress; competition
had already picked up the ball and started moving in the same direction ! The
CFO brushed aside their pleas with the view that he cannot pay more than what
he perceived as value for the solution. Business teams withdrew active follow
up and left the baby in the lap of IT; the CIO realized that ego had
overpowered rationale thought and asked the vendor to decline the business.
In the meeting caught unawares, the CEO sought details which
the CIO provided in the presence of the Business Head who was not party to the
game. An urgent meeting was summoned with Finance, Purchase, Business and IT
heads to analyze and find a way to recover the situation. The CFO who was
handpicked by the CEO found himself in a compromised situation; he unsuccessfully
attempted to shift the blame, finally sheepishly agreeing to recall the vendor
and accept their last provided offer to move ahead.
Happy ending ? For next time …
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