The Supplier Has a Proposal. Who Has the Authority to Say No?
A supplier can make a technically sound recommendation and still be wrong for the business that must live with its consequences.
This is not an accusation against vendors. Their expertise can be essential. The problem begins when an executive committee treats a recommendation as a decision already made, merely awaiting budget approval.
The supplier owns its proposal. The company owns the exposure created by accepting it. Those are not interchangeable responsibilities.
Approval is not the same as judgment
A board may receive a detailed implementation plan, a commercial offer and an attractive business case. None of those documents proves that management has evaluated what the organization would lose by choosing a different path—or by refusing to proceed.
Who established that the proposed investment addresses the real business constraint? Who challenged the recurring obligations that will remain after implementation? Who determined the degree of dependence the organization can accept? And, most importantly, who has the authority to stop the decision even when the technical team and the supplier agree?
When those questions have no clear owner, procurement becomes a substitute for governance. The company may negotiate the price carefully while failing to examine the decision itself.
The test is what happens when the answer is no
A serious governance structure must be able to reject an attractive proposal without having to prove that the technology is defective. Insufficient institutional readiness, unowned operational risk or an unacceptable exit cost may be reasons enough.
This also applies to capital allocation. CAPEX can be contained while OPEX becomes difficult to control; an implementation may be completed while the organization loses the practical ability to change course. Commercial success for a supplier is not evidence of strategic success for a client.
There is a useful distinction: technical specialists should explain the options and their consequences. Executive leadership must decide which consequences the institution is prepared to assume.
The board does not need to overrule technical knowledge. It needs enough independent judgment to know when that knowledge does not settle the business question.
If nobody can say no with authority and evidence, the organization may be purchasing technology while surrendering the decision.
Benhail Acosta Mejía | InnoBAME
Related perspective: Proveedores no reemplazan criterio ejecutivo (análisis en español)
Comments
Post a Comment