Multi-System Integrator (SI) delivery model problems typically stem from a lack of shared definition of scope & RACI, misaligned incentives, and clients underinvesting in governance of these inherently competitive and combative relationships. In my experience, clients are increasingly trying to mitigate these risks by: (1) Increased due diligence of SI proposals in sourcing phase, accounting for these risks through contingencies, and documenting expectations in SoWs to keep SIs accountable. (2) Ensuring all-vendor pre-contracting workshops to align program RACI and scope split (and then document in individual SoWs) to handle dependencies. (3) Contracting with a lead SI to own contractual scope and deliverable compliance of other SIs.

Identification of all the risks early in the life cycle of the program is of paramount importance. Ensure you conduct VENDOR SPECIFIC risk reviews. Identify all the risks and assign external risks to respective Vendors, assess impact, assign priority, and give ETA for all risks. Always track and control all the internal and external risks regularly and effectively. Publish and Escalate the risk related alerts, reminders to vendors and all the stake holders well. Highlight every impact in $$$ terms and impact on the end customer and your company brand. In summary, follow up aggressively until you nail down each risk to closure. As a PM, always you need to narrate the final goal and any deviations to that goal very well.

To manage risks from external vendors, start by carefully checking their financial health, reputation, and past performance. Create detailed contracts that outline what’s expected, including risk management and contingency plans. Keep in touch regularly to monitor their progress and quickly address any issues. Assess potential risks and work with vendors to develop strategies to handle them. Track their performance and make adjustments if needed. Have backup plans ready for critical services in case of problems. Build good working relationships with vendors to improve cooperation and problem-solving. These steps help ensure that vendor issues don’t affect your project’s success.

Most of my recent projects relied on external vendors for project success. To ensure their risks don’t become my own, I establish clear expectations through comprehensive Statements of Work (SOWs) that outline deliverables, timelines, and performance standards. Sometimes I will incorporate a RACI matrix in the SOW to clearly define roles and responsibilities, ensuring accountability at every stage. Regular communication, progress tracking, and performance monitoring help me stay ahead of potential issues. If it comes to it, I will request a replacement of underperforming external resources. By managing vendor relationships proactively and ensuring they adhere to the SOW, I mitigate risks and maintain control over project outcomes.