Line of Departure

Musings of a US Army reservist and China expat deployed to Iraq

Tuesday, December 13, 2011

Techniques for motivating vendors or subcontractor partners?

We have consistently had problems managing quality with our test lab partners.   Sometimes they screw up the sampling at the client's house.  Or, they cut corners on analyzing the results.  We've caught problems on both ends.   The root of the problem is that the people who do the work (sampling or lab analysis) just don't care.  They are not paid enough to really value their jobs and they don't get any reward for doing better.  If we pay the company extra, they do not see this money so actually are more likely to have worse results when we have a rush fee.  So our only way to ensure quality is to micromanage and we can't be everywhere at one time.

One suggestion one of our staffers had was to give certain people some money under the table.  But, this is not really based on any standards and I worry that they may start expecting it.

What do you think about this idea:  every month, we nominate 3 best performing staff -- can be sampling staff or lab staff or even customer service, and let them know that they were selected.  We state very clearly what the criteria is and also have a little citation on why that person was nominated.  Then, we pick one to win a cash award -- doesn't have to be much (maybe 200-300rmb?), maybe a gift card, but the idea is that it is appreciated, unexpected, and very visible -- and it doesn't just motivate one person, but all three and hopefully anyone else who sees this.  We want to tie performance to results.

Do you think this idea would work?  Any modifications?  Should we pick 3 best across both labs so maybe they even feel some pride in their own lab and some healthy competition?   

What have you guys done that's worked,  either with your own staff or subcontractor/partner companies?

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