You have spent time diligently researching your partners, consultants and vendors and you have invested your personal time into your network of your peers. Now the challenge is how to be more profitable and getting a return on the investment in time while maintaining transparency and integrity. My experience as a CFO of a financially successful company is that there is no shortage of vendors asking for time on my calendar to pitch ideas and certainly the existing vendors, bankers and consultant are happy to take me to a favorite sporting event or golf to talk business. My rational question is "If they have money to spend there, how do I reallocate it back to my company so my CEO sees the value?"
The conclusion I have come to is that you can negotiate much more than your companies business to get favorable treatment from the people that have legitimately earned your business. I learned this practice from a VP of Quality/Regulatory at my company who negotiated almost half off software by promising the vendor he would get him additional customers and revenue by recommendation if he lowered our price and extended our payment terms. This got me thinking that if it works on software, capital expenditures then maybe it can work effectively on consultants etc. I have engaged in outsourcing much of my basic information technology infrastructure to a firm that has exceeded my expectations in many ways and as a result I am vocal to my peers when they complain that they are being under served by their internal technology employees but don't have an alternative that they are willing to take a risk on. After lining up more than three new contracts for this firm I am now much more valuable to them then my own companies contract would suggest and find them flexible when asking for additional resources without being charged as I would have several years ago. My consultants related to specific US tax credit are also very worthy of attaching my name and reputation to and I believe I can continue to extend that relationship out several more years without any cost increase by proving my value as a referral.
It is critical that these referrals are done transparent to the benefit I could receive and that they are told that these are negotiation points that my peers can extend to their own network. My change in behavior is the move from advocating for services that I am happy with to sharing that leverage with my own company in the form of something that doesn't benefit me personally. In essence, you too can be a salesperson for your critical vendors and the commission can go to your company!
