I recently started a new role working with credit unions to understand their ambitions for leveraging a vendor of some sort alongside our core processing solution. This typically involves connecting that vendor or sharing data between our two solutions in some fashion to benefit of our mutual client. Specifically, my role is to conduct discovery from the business perspective on what the project would entail.

In the short while I have been doing this, I have readily identified a few trends and in turn, helpful advice for those wishing to pursue a collaboration between their partners and/or vendors. Here are my top five things to think about if you are embarking on an endeavor to “connect” solutions.

Partner or vendor

Notice above I referred to “a collaboration between their partners and/or vendors.” Why two terms to refer to your solution providers? Simply put, not every vendor is a partner. A partner is a vendor that is vested in your success and envisions themselves on your team with your interests in mind. They want to make money sure enough, but they want to do it by genuinely helping you succeed.

A vendor is purely a solution provider and may not have your interests in mind as much as theirs. Buyer beware of these folks; they are not looking out for you. I would submit that vendors would vehemently deny they are self-serving, but I would encourage you to understand which you are working with.

There’s an old saying, “Your actions are speaking so loud I cannot hear what you’re saying.” Read the actions, know which relationship you are working with, and act accordingly.

Be realistic with offerings

Beware the silver tongue vendor that over-promises. “Many folks are already using this.” Many who? Have them name names and provide references. “We already have this built.” Do they? It’s as simple as picking up the phone or a quick email to verify.

I have had vendors tell some of our clients they had an integration with us already built and in production when the truth was, we had not even gotten started. “We can get you implemented next week!” Can they really? Maybe they can, but can your other vendors they need to hook up to keep pace?

“It will save you money,” “it’s the way to the future,” “we have the secret sauce,” and the list goes on. Do your due diligence on promises and don’t sign anything until you do.

One more note on signing contracts: for emerging or rapidly changing products, keep them short. Do not get roped into a long-term contract that is for something that may turn out to be a fad or likely to materially change rapidly due to evolving technology.

Know how the vendor operates

Speaking of due diligence, who are the vendors’ vendors? I once saw a vendor that outsourced their data hosting to a company located overseas. So, the data going to them was actually sent to a server in another country. Verify their safety and soundness.

If their solution involves biometrics for authentication or another purpose, this is a big red flag. There are many states with biometric data laws. Be sure you are complying. Bottom line: make sure the basket you are putting your eggs in is sturdy!

Take it one step at a time

Buy just what you need! Many vendors will oversell you functionality you just don’t need for what you are looking to get done. I encourage a prove it to improve it approach. Start small and build on it, don’t go all in only to find out the solution isn’t what you thought or you are not getting the ROI you envisioned.

Also, beware of shiny objects that are cool but really can’t be justified from the business perspective. Make sure the value is there and a sound business case behind it.

Check at home first

Don’t sign anything until you check out existing solutions that may get the job done. Existing solutions may be a bit different or not everything you wanted, but they usually come at a fraction of the price and much quicker as they are already on the shelf. You can easily go from months to weeks for implementation.

You are a part of the team

Bonus tip: Do not underestimate your level of involvement! Your vendors don’t know each other (no formal business arrangement), they have no vested interest in each other. You are the common thread that brings them together. You need to manage them and ensure each is at the table doing their part, and when they can’t agree, you need to broker the compromise. You need to herd the cats! Be ready for your level of involvement.

Keep the above in mind and you are on the right path to a smoother project involving multiple vendors—hopefully they are partners!