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Program Management: Vendor Alignment Strategies That Minimize Risk

September 29, 2025 | | Program Management

As enterprise programs grow in scope and complexity, external vendors play an increasingly central role in delivering outcomes. Software providers, system integrators, training partners, and data vendors often own critical components of success. And yet, many organizations still treat vendors as separate workstreams rather than fully embedded partners in the transformation journey.

At Andrew Reise, we’ve led complex programs in which half the delivery effort came from external vendors. We’ve seen the consequences of unclear vendor accountability: missed milestones, misaligned priorities, and reactive escalation. A proactive vendor alignment strategy reduces risk, increases velocity, and builds true partnerships.

In this blog post, we’ll share how project management offices (PMOs) can embed vendors into the program structure, co-plan deliverables, and govern performance through data-driven insights—turning vendors into accountable collaborators rather than just implementers.

Plan with Vendors from Day One

Vendors should be engaged before contracts are signed. Early involvement ensures smooth implementation.

We recommend setting up:

  • Joint working sessions to define the scope, timeline, and milestones
  • Shared planning documents that map deliverables across both client and vendor workstreams
  • Integrated kickoff activities, including vendor presence in stakeholder and PMO onboarding

In a past telecom engagement, the client’s contact center technology vendor was deeply involved in the early design and scheduling process. By working collaboratively to map dependencies between telephony infrastructure, customer relationship management (CRM) systems, and user training, we prevented late-stage conflicts and accelerated rollout readiness.

Early vendor involvement surfaces risks, clarifies assumptions, and turns vendors into solution partners.

Establish Clear Vendor Accountability

In program management, vendor alignment is all about establishing mutual accountability and responsibility. We help our clients build vendor frameworks that include.

1. Vendor Scorecards

These are structured dashboards that track:

  • Deliverable completion
  • Service-level agreement (SLA) compliance
  • Quality of output (e.g., defect rates, issue response time)
  • Integration readiness

One client we worked with reviewed vendor scorecards weekly in the executive steering committee (ESC) meeting. This gave leadership immediate visibility into performance and created a data-driven basis for escalation or recognition.

2. Contract-Linked Milestones

Whenever possible, we encourage clients to link payment terms to milestone achievements. This creates built-in incentives for on-time, quality delivery.

For example, instead of paying a vendor after 30 days, a milestone-based contract might release payment only when:

  • Testing environments are delivered
  • Training is completed and validated
  • Pilot users confirm functionality

This approach focuses on outcomes and balances the client-vendor relationship.

Lessons from the Field: Contact Center and CX Technology

Many of our clients are modernizing contact center environments, often in partnership with customer experience (CX) technology providers. These transformations are complex, often involving:

In one healthcare client program, we helped integrate multiple vendor systems into a legacy contact center infrastructure. To succeed, we created a vendor integration council—a recurring governance forum with all vendor leads, internal IT, and the PMO.

This group managed:

  • Shared timelines across systems
  • Joint testing plans
  • Escalation for data handoff issues
  • Decision logs to manage scope adjustments

Without this structure, unclear ownership and overlapping timelines could have delayed go-live by months.

Mitigate Vendor Risks Proactively

Vendors introduce unique risks—especially when multiple parties are involved. The PMO must actively manage these risks using structured tools

Here’s how we do it: 

1. Issue Escalation Paths

Before execution begins, define:

  • What qualifies as a vendor issue versus an internal issue
  • Who owns escalation (e.g., project manager, program sponsor, vendor lead)
  • What thresholds trigger escalation (e.g., missed deliverables, failed testing)

Documented escalation paths prevent finger-pointing and accelerate resolution.

2. Performance Metrics

For each vendor, establish performance targets. Examples include:

  • Uptime percentages for hosted platforms
  • Support ticket response times
  • Successful handoffs in testing cycles
  • End-user satisfaction with vendor-led training

Tracking metrics makes vendor management data-driven and accountable.

3. Joint Risk Reviews

Include vendors in your risk review meetings to ensure a comprehensive assessment. When vendors are asked to identify and mitigate their own risks in partnership with the PMO, alignment improves.

In one utilities program, our joint risk logs with a systems integrator helped avoid a data migration failure by surfacing dependency gaps in advance.

Embed Vendors in the PMO

Effective program management requires treating vendors as an extension of the internal team to minimize risk. That means embedding them in governance, reporting, and workstreams—not keeping them on the sidelines.

Here’s what embedded vendor management looks like:

  • Vendor project managers attend weekly status and risk meetings
  • Reporting dashboards are shared and allow for client and vendor input
  • Workstreams are co-owned by internal leads and vendor subject-matter experts
  • Vendor responsibilities are listed in the program documentation and scorecards

 

Vendors who are treated as partners will identify risks faster, collaborate openly, and go the extra mile.

Keep Vendors Accountable

Accountability comes from joint planning, shared scorecards, defined SLAs, and the integration of vendor teams into governance routines. 

During a recent engagement with an insurance client, we helped launch a digital servicing platform involving four core vendors: one for CRM, one for document storage, one for data integration, and one for contact center enhancements.

We implemented a vendor alignment model that included:

  • Joint planning workshops with all vendors and internal stakeholders
  • Contractual milestone payments tied to readiness
  • Integrated risk logs are reviewed biweekly with all parties
  • Performance scorecards shared with the ESC

Even with multiple vendors, the program met its go-live date. Escalations were rare, dependencies were managed proactively, and vendors acted as a cohesive team.

Vendor Alignment Is a Core PMO Capability

You can’t outsource risk, and keeping vendors at arm’s length jeopardizes program success.

When done well, embedded vendor alignment drives:

  • Faster delivery and fewer delays
  • Smoother integration and fewer rework cycles
  • Improved accountability and clearer communication
  • More value for every dollar spent

At Andrew Reise, we help organizations turn vendor relationships into structured, results-driven partnerships. We design robust program management frameworks that integrate vendors and ensure every initiative delivers measurable value.

Connect with Andrew Reise to build a program approach that drives predictable results.