According to Training Magazine’s 2006 Industry Report, 27% of small and 71% of large companies outsource some or all of their custom content development. To establish and maintain successful partnerships, you should select the right outsourcing partner, continually assess established partners, identify measures up-front in the contract, and make a commitment for mutual success.

1. Are Your Training Partners
Living Up to Their Promises? February 19, 2007
O/E Learning, Inc. (800) 833-8204 www.oe.com
• Years in Business
• Qualified Staff
• Industry Recognition
• Customer Service
• Creativity
• Innovation
Next, develop a definition for each
of the criteria that provides
everyone with the same
understanding. For example, you
According to Training Magazine’s
might define the first three criteria
2006 Industry Report, 27% of small
as follows:
and 71% of large companies
outsource some or all of their Criteria Definition
custom content development. To Quality Vendor produces
establish and maintain successful deliverables without
errors.
partnerships, you should select the
Value Vendor delivers a
right outsourcing partner,
superior service at a
continually assess established
fair price.
partners, identify measures up-front Efficiency Vendor has well-
in the contract, and make a established processes
commitment for mutual success. and procedures in
place which meet our
schedule requirements.
Selecting the Right
With agreement on the selection
Outsourcing Partner
criteria, you can weight them—
In order to select the right
assigning a higher weight to those
outsourcing partner, clearly define
According to Training items that carry a higher level of
the selection criteria and a process
importance.
Magazine’s 2006 Industry for evaluating vendors. Decision
makers should determine and Next, define your process for pre-
Report, 27% of small and
agree on the criteria that every qualifying vendors, identifying the
vendor must meet. Selection best project fit, and conducting
71% of large companies
criteria for a training partner would project closure evaluations. This
include some of these big hitters: article covers the process for the
outsource some or all of
following three stages:
• Quality
their custom content
• Value • Stage 1: Pre-Qualification
• Efficiency • Stage 2: Project Fit
development.
• Process • Stage 3: Project Closure
• Expertise
• Technology

2. Are Your Training Partners Living Up to Their Promises?
2
Stage 1: Pre-Qualification
• Relevant Project History
The pre-qualification stage is often
• Training Evaluations
led by or requires the involvement
• Pricing Models
of your purchasing department.
• Samples
Pre-qualification allows all decision
makers to assess various vendors Capability Presentations
before project needs arise and For capability presentations, limit
helps you expand or narrow your the topics. The goal is to make
vendor options. You may include the topic areas consistent across
the following steps or activities in all vendors—smoothing and
this stage. balancing the decision making
process.
Request for Information (RFI)
A well thought out RFI, customized Giving vendors the topics in
to the type of service you are advance and having them
seeking, must be consistently used prepare a customized
for all vendors being assessed for presentation—based on your
like services. For example, the requests and needs—helps them
information that you would request to understand you and your
from a custom content business. If a vendor uses a
development vendor is different canned capability presentation, it
from a Learning Management sends a clear message about
System (LMS) or an authoring tool their responsiveness,
vendor. Some vendors have commitment, and flexibility.
multiple capabilities; you may want
When scheduling the capability
to have them respond to more than
presentations, give vendors a set
one RFI if you are seeking multiple
amount of time for their
services.
presentation. Allow time in
Provide vendors with a clear and between each presentation for
Pre-qualification allows easy to use template which helps the decision makers to evaluate
you to receive information in a way the vendors immediately after
all decision makers to
that makes it easier to compare each presentation.
vendors—while also limiting the
assess various vendors
Using a standard evaluation to
volume of information you receive.
rate the vendors, the decision
Consider including these sections:
before project needs
makers provide ratings on the
• Company History and Financials
arise and helps you following types of statements:
• Summary and Breakdown of
• The vendor came prepared
Staff
expand or narrow your
and did their research.
• Business Process
• The vendor’s presentation
• Description of Operations
vendor options.
• Project Management included all requested topics.

3. Are Your Training Partners Living Up to Their Promises?
3
Stage 2: Project Fit
• The vendor asked thought-
provoking questions. Now that you have a list of
• The vendor involved the right qualified vendors, you can select
people from his/her one of them for your next project.
organization in the You may follow several steps
presentation. before deciding on which vendor
• The vendor was to use.
knowledgeable.
Check Current Capacity
Based on the requirements of the
Selection of Top Vendors
project, you may have a vendor
Using the data collected in the RFI
in mind. Some buyers contact
and through the capabilities
their qualified vendors to check
presentations, you can now
on their current capacity and
narrow your selection to the top
ability to handle the project at
vendors. A matrix which includes
hand. Now the value of the pre-
all the vendors and the weighted
qualification stage is realized.
selection criteria helps decision
Projects are more successful
makers to narrow their selection.
when the vendor fits the project
Projects are more
As a team, work through the list of requirements—taking into
vendors and assign a rating for account both capabilities and
successful when the
each of the selection criteria. available capacity.
vendor fits the project During this final selection, the
Request for Proposal
decision making team may need
requirements—taking into The proposal should be clear and
to give more thought and have
concise. Again, the benefits of
more discussion on one or two
account both capabilities
the pre-qualification stage are
vendors before making any final
also evident in the RFP process.
decisions. The team may recall
and available capacity.
The RFP and the vendor responses
certain vendors or request
are typically shorter in length and
additional information.
much more straightforward.
Once you have the final
Vendor Presentations (if needed)
selections, notify each vendor and
By holding capability
explain why they were or were not
presentations in the first stage, it is
selected. Give the selected
unlikely that additional vendor
vendors an explanation of the
presentations will be necessary. If
process moving forward and if you
the intricacies and success of the
foresee any projects on the
project dictate further
horizon. To streamline the process
presentations, include them.
down the road, it may also be
helpful to initiate general service
Selection
contracts with the selected
By involving the decision makers
vendors.
in the first stage, the selection of a

4. Are Your Training Partners Living Up to Their Promises?
4
and report on the satisfaction of
vendor for a specific project is often
project teams; however, some
expedited. In most cases, the
companies take on this
vendor’s current capacity and
responsibility and share the data
capability or “fit” for the project
with their vendors. Document and
requirements narrows the choice.
share success stories—success
Contract Negotiation stories feed enthusiasm and build
Again, your work in the pre- stronger partnerships.
qualification stage allows for more
Measures
expeditious negotiations. With
If the vendor is responsible for
general pricing agreements in
other project success measures,
place, you can quickly move to
these should be formally
negotiations—keeping the project
Project closure steps
documented and reported at this
start in focus and at the forefront.
time. Some measures may need
should occur within a
Stage 3: Project Closure to be assessed and tracked over
week after the vendor a few months or longer. Specific
Project closure steps should occur
measures may include:
within a week after the vendor
provides the final
provides the final deliverable(s)
• Increases in productivity
because involved team members
deliverable(s) ... • Improved product quality
are tuned in to the activities and • Positive course evaluations
• Course assessment results
more likely to remember the finer
details of the project. Complete the
Continually Assess
steps below in a timely manner for
the most benefit. Established Partners
You invested time and effort in
Lessons Learned
choosing the right outsourcing
Lessons Learned can be captured
partners. Now that they have
in many ways. Typically, a meeting
worked on several projects, it is
that encourages feedback from
equally important to take the
everyone is held with all project
You invested time and
time to continually reassess them.
team members. Sending out a
Outsourcing partners that are
Lessons Learned form in advance
effort in choosing the
living up to their promises could
solicits specific input and
right outsourcing be described as:
encourages preparedness. The
Lessons Learned should be
partners. Now that they • Dedicated
documented and shared with all
• Responsive
project team members. When
have worked on several • Engaged
appropriate, you and/or the vendor • Flexible
projects, it is equally • Efficient
can take specific actions to
• Expeditious
improve processes and procedures
important to take the
for future projects. The table on the next page
describes these characteristics.
time to continually
Project Team Satisfaction
Commonly, vendors gather data
reassess them.

5. Are Your Training Partners Living Up to Their Promises?
5
Characteristic Description
Dedicated You should feel a sense of enthusiasm from the vendors
and their staff. They should show a willingness to go
“above and beyond” to meet or exceed your
expectations. Vendors may devote the same staff to
your projects in order to become more efficient and
develop a better understanding of your needs,
requirements, and expectations.
Engaged vendors are
Responsive When you ask for help or if you have an issue that
needs to be resolved, this vendor delivers quickly. You
zeroed in on you, your
should expect to receive regular and sufficient contact
from your vendors. Mistakes/mishaps should be
industry, and your needs.
minimal; when they do happen, this vendor takes them
seriously and resolves them quickly and to your
They are consultative
satisfaction.
Engaged Vendors that are zeroed in on you, your industry, and
with regards to new
your needs. They are consultative with regards to new
technology, innovations, trends, and improvements.
technology, innovations,
Their quality and service consistently meets or exceeds
your expectations.
trends, and
Flexible While vendors should have their own business process,
they also need to maintain a level of flexibility. They
improvements.
should be willing to adopt elements of your business
philosophies and processes.
Efficient Your vendors should be well-organized and proficient.
Unnecessary steps in the process add both time and
costs. As vendors become familiar with your needs and
expectations, their operations should streamline and
efficiencies should become evident over time.
Expeditious While maintaining a focus on quality, vendors should
respond with urgency because the speed at which
they deliver is important to you and your business
results.
• Response Time
Identify Measures • Project Team Satisfaction
Up-Front in the Contract • Learner (End User) Satisfaction
• Timely Project Completion
While some characteristics are • Business Results (Employee
Satisfaction/Retention,
difficult to measure, others are easy
Sales/Revenue, Customer
to quantify. Both vendor and
Satisfaction/Loyalty)
Whatever you determine project-based measures should be
identified up-front during pre- Remember, many factors affect
to measure, keep it fair
qualification or when you negotiate the success of a training initiative.
the contract for a project. When you build what your
and within the control of
Whatever you determine to customers want and need, they
the vendor. measure, keep it fair and within the are more likely to embrace it.
control of the vendor. Some Marketing campaigns and
examples include: institutionalization of your training

6. Are Your Training Partners Living Up to Their Promises?
6
establishes buy-in of key players.
programs also influence success.
Ensure the development of a
Measures and other indicators of
partnership with the vendor by
success help identify shortcomings
To get the most out of
providing the following:
to address and resolve.
your investment, develop
• Committed Team Members
Make a Commitment for • Dedicated Project Leader
a commitment for
• Subject Matter Expertise
Mutual Success • Mutual Trust
mutual success at all
• Open Communication
To get the most out of your
• Mutual Accountability
investment, develop a commitment
levels.
• Partnership Vision
for mutual success at all levels.
Involving the right decision makers The table below provides further
in the pre-qualification stage descriptions.
Committed Your internal team members need to be committed
Team Members to the project and the selected vendor. Depending
on the nature of the project and each team
member’s involvement, normal workloads may need
to be alleviated—ensuring project success and
avoiding undue stress and burnout of team members.
Dedicated A project leader keeps the internal team on track
Project Leader and serves as a liaison.
Subject Matter Successful projects have access to the right subject
Expertise matter experts who are instrumental in providing
accurate, thorough, and suitable content.
Mutual Trust Vendors and internal team members must have
confidence in each others’ skills, talents, and
contributions. Consistently meeting expectations and
following through on commitments nurtures and
Successful projects have
builds mutual trust.
Open By openly sharing expectations and communicating
access to the right
Communication “dissatisfiers” early on, vendors can adjust and work
more effectively on your projects. Immediate and
subject matter experts
constant feedback throughout the life of a project
saves time and money.
who are instrumental in
Mutual Internal team members must be accountable for their
Accountability project responsibilities and timely completion of tasks.
providing accurate,
Partnership Ultimately, ensuring a long-term engagement with
Vision your outsourcing partners allows them to truly
thorough, and suitable
contribute to your company’s success.
content.
• Selecting the right outsourcing
Establishing and maintaining
partner.
partnerships with your vendors is
• Continually assessing
worth the investment and includes
established partners.
the following key strategies to • Identifying measures up-front
ensure success: in the contract.
• Making a commitment for
mutual success.

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