Do you know what motivates your key vendors?

When you think about what motivates your employees, is money the first and only thing that comes to mind?  No.  It’s important, but it’s one of several things that motivates your employees to be on mission with you, to do their best, to engage, etc.  You’d be naive to run your business assuming cash is the one and only motivator that matters.

Now let’s switch to your key vendor relationships.  I’m not talking about vendors who provide commodity services like long distance or office supplies, but vendors who you need to partner with you to make your business a success.

Do you have these key vendors in mind?  Now ask yourself how you’re motivating them.  How do you get them to be on mission with you, to do their best and to engage?  If you’re like a lot of businesses, and how I was several years ago, the financial lever is the only one you pull.  I withheld payment for poor service, paid promptly for good service, negotiated for the lowest rate and best terms and offered financial incentives and penalties all in an effort to get the best deal and motivate the vendor to perform.  I’d never dream of managing employees like this, but this was how I was managing our key vendors and it didn’t work.  Is it working for you?  If not, take heart because there is another way.  Try these simple steps:

1. Schedule a meeting with your key vendors to do a health check.  Budget a couple hours and make sure your regular contact and appropriate execs/owners attend.
2. Ask them if they’re motivated, energized and satisfied doing work for you.  If not, why?  How could things improve?
3. Ask them to articulate your mission, values and culture.  If there are gaps, fill them.  If there are inaccuracies, correct them.
4. Ask them if they believe in your mission, values and culture.  If not, they’re just a hired gun.  Is that what you want from a key vendor?
5. Do they really understand what you do and how you make money?  If not, it’s time to start teaching.

This may all seem a little strange or unorthodox when applied to vendors who are supposed to perform because they want to get paid, but companies are just made up of complicated people who are motivated by more than money.  If you’re not managing them with this in mind, you won’t get the best from them.