As the use of third party vendors continues to increase, the necessity of a strong communication network is apparent. A 2015 article by Cutting Edge Information stated that The Association for Clinical Research Organizations estimates sponsor use of third party vendors to support studies has increased by 44% from 2007 to 2011. Whether a third party vendor is engaged to support a portion of a project or a full project, it is imperative to establish a routine communication plan that fosters transparency and clear goals. This communication channel should also follow company standard operating procedures and contain escalation pathway, to ensure any delays or issues are managed proactively. A NAVEX Global survey of over 300 business professionals responsible for ethics and compliance activities revealed that 71 percent admitted they do not track information on some or all of their third party relationships. This sets a company up for several issues, including holes in metrics, missed deadlines and, most critical, high risk for ethics and compliance issues.
The first step in developing a strong communication channel with third party vendors is to determine the need for the vendor. It is important to take the following into account when determining third party vendor requirements:
A need to expand resources
- You are the expert, but do not have the physical resources to complete the work.
- You plan to maintain control of the activities, but need added bodies/hands to execute the work.
- You provide guidelines on project execution.
- You have a hand in implementation of tactics.
A need for an expert
- You do not have the experience to support the project and need to outsource.
- You look to the vendor to manage the bulk of the work.
- The vendor provides their recommendations/tactics for approval.
- The vendor executes all activities.
- The vendor provides routine updates.
Figure 1.After establishing the rationale for incorporating a third party vendor, the next core step is to choose the right vendor to fit the project’s needs. Factor in four key areas of the vendor: experience, timeline, budget and overall scope-of-work (see Table 1). Prioritizing each factor may vary, depending on the project. In addition, ask and answer the following questions to help lead to the ideal vendor:
- Does the vendor cover the project’s needs?
- Does the vendor fall within budget?
- Any contingencies/factors that could impact the budget?
- How flexible is the vendor with shifts in timelines or budget?
- Does the vendor provide metrics on previous experience with similar projects?
Scope of Work
A clear scope of work with a vendor is essential to setting up the partnership for success. If the vendor is not clear on the project needs, then they cannot be expected to meet or exceed expectations. Each vendor will vary in how they present their proposed scope of work. Incurring multiple change orders on a project will lead to increased cost, both monetary and time. There is cost and time involved to process a change order; time that could be allocated to project execution. Taking added steps when reviewing a vendor’s scope of work will help to minimize unnecessary changes to the scope later in the project.
To establish a level of consistency and assurance that the scope covers core project needs, create a checklist to reference these main items during proposal review. The checklist may include the following:
- Timelines - specify if based on business/ working days.
- Risk-based costs - does this vendor take on any risks?
- Meetings - does the budget cover vendor attending routine meetings?
- Vendor updates - what is the expected frequency of updates?
- Sample reports - ask the vendor to provide sample report(s) to ensure they include information needed.
- Change in scope - confirm the vendor’s requirements and timeline for changes in scope process.
- Number of revisions - in some cases, vendors budget for a set number of revisions.
- Contingencies - does the vendor outline any variables or factors that are not covered in their scope (i.e., client review timelines, ad hoc requests, extend timelines, etc.).
- Project close-out - what final reporting/ metrics are provided by the vendor? What are the timelines for providing final reports?
If a change order is necessary, this should tie back to the upfront triggers for revisions set-up during the initial proposal review. If the tasks or needs of the project are out-of-scope, the communication pathway that was established should support proactive discussions of this added work and cost implications.
Communication Pathway
Once a solid base is established, a strong communication pathway can follow suit to streamline the communication pathway with third party vendors. Ideally a vendor’s primary contact should be a project lead or manager (See Table 2). The project manager/ lead maintains vendor management and the vendor provides routine updates to the project manager/lead. Equally, the project manager/lead provides updates to the client.
If there are any back-up leads involved, then they too could be included, to ensure continuation of project work during vacations or any unforeseen events.
As with a clear understanding of the expectations, it is important for the vendor to understand who to report to and the reporting timelines. Any gray area in the communication pathway can set up the project for missed deadlines or incomplete information.
Figure 2.Ongoing Communication Pathway
Establishing the communication pathway is essential, but keeping communications moving through the course of a project is also vital for success. As mentioned in the scope of work section, a vendor should account for having routine meetings to discuss project start-up and status updates. Having routine conversations (via phone or in-person), in addition to interim email communications, will help create a foundation for ongoing, open communication.
Figure 3.When setting up routine meetings, consider the following:
- Timing will be dependent on project needs (weekly, bi-weekly, monthly)
- Developing an agenda prior to each call (either the client or vendor) to outline key discussion items and updates
- Setting escalation triggers (i.e., missed deadlines, deviating from scoped work, etc.)
After each meeting, it is important to maintain meeting minutes. Instead of having a narrative set of bulleted meeting minutes, consider instead developing an action/decisions log. This log would allow for both parties to have a clear understanding of the action items agreed during the meeting, deadlines for actions, any action items that are closed, and key decisions made during the meeting.
This action/decisions log should include:
- Area to describe the agreed actions
- Person responsible for action completion
- Estimated due dates for agreed action items
- Actual completion dates for agreed action items
- Area for notes/comments
This action/decisions log should be shared with both the vendor and the client. This will ensure not only synergy across the team, but also support a team approach to ensure that all actions are captured and documented correctly. Any discrepancies or confusion within the team can then be addressed proactively and minimize missed deadlines or incomplete information.
This open communication will support an environment for transparency, which will benefit both parties in the long run. When significant information is withheld by the vendor, the risk of experiencing ethical or compliance issues increases. The project lead should also reciprocate to ensure all essential information is provided to the vendor. The level of information shared should be in line with company policies. If a vendor requests certain information and offers rationale for why the requested information would benefit the deliverables, as long as the information sharing is in line with ethics parameters, there should be no barriers to fulfilling the request.
Steps When A Communication Pathway Shows Weakness
Even when all recommended steps are taken, a vendor communication pathway is not a guaranteed success. Especially for lengthy projects, running over the course of multiple years, a project lead/manager will want to review the scope and check/balance the work to make sure the vendor’s services are still lining up with the project needs. Expedited timelines or rescue situations in a project may require swift actions and thus steps may get missed. There may also be staff turnover on the vendor’s side, so having set up a clear and organized checklist and having action/ decision logs will make bringing on any new team member less time consuming and set up for a seamless transition.
As with any issue, proactive resolution is essential. If vendor activities are underway and the steps in reviewing the scope of work are incomplete, a project lead can still apply the concepts. Doing this as soon as possible can help to identify any missing items or resolve inconsistencies within a timeframe that will minimize any longterm impact.
For example, a project is at the one year mark and the vendor is suddenly missing deadlines or providing incomplete reports. Knowing there is a checklist of items to cover scope, timelines, and other expected deliverables, the company should establish an agenda during a routine call to discuss these issues. It may be the scope of the project has changed and it is evident the vendor is not clear on the new expectations. When issues arise, take the time to discuss and analyze the issues, so as a team, solutions can be established and implemented.
Summary
Establishing a strong communication pathway with third party vendors is essential for a successful partnership and subsequent project success. Before developing a communication pathway, selecting the right vendor is a crucial first step. Consider the level of service the vendor needs to provide. Is a vendor needed because there is a lack of resource to execute the service required for the project? Or, is a vendor being solicited because there is a need for expertise and strategy?
Another step in establishing a solid communication pathway is setting clear expec-tations. When reviewing a vendor’s scope of work, review the parameters around:
- Budget - detailed description of what is included in the costs.
- Flexibility in change in scope - avoid multiple changes in scope upfront.
- Expertise - request metrics from past projects and even examples of issue resolution.
- Timelines - what are the vendor’s estimated timelines and are there options to expedite or fast track certain areas.
Open communication with vendors will lead to a successful, ongoing communication relationship. Both the vendor and project lead/manager should foster a communication pathway that invites information sharing and straightforward remarks. The level of information should remain in line with any company policies.
Lastly, an action/decision log should be used to document all agreed action items and completed work. The action log will support both open and ongoing communications and ensure the entire team is synchronized. This document also serves as a means to seamlessly transition new team members to a project or reference should any issues arise during the course of a project. These issues can be managed proactively, to minimize any delays or costs associated with missed deadlines or incomplete information.
Nicole Yingst is a Patient Recruitment Specialist at PAREXEL International. Mrs. Yingst has more than 13 years of experience in the clinical trial industry, developing various patient recruitment and retention activities intended to support sponsors milestones. Mrs. Yingst strategizes in close collaboration with multiple vendors to develop branding, recruitment/retention manage-ment strategies, collateral, adver-tising and online promotions.