Step #1: Establish the Criteria

Before evaluating potential vendors, you need to first define the criteria on which they will be assessed. Once your criteria is clear, you can build a comparison matrix to objectively compare vendors. Here’s a step-by-step guide to help you get started on establishing the criteria:

1. Define the Scope of the Service or System
   List the processes you plan to transition to the provider or system. During initial meetings, ask how similar organizations leverage the provider or system – this may lead you to expand your list. For example, with a data extraction / content collection tool, vendor discussions might reveal that the system can be leveraged to extract data for the pipeline process.
2. Identify Edge Cases
   Think through non-standard scenarios that could test the flexibility and robustness of each solution. Add these cases to your comparison matrix to see how each vendor responds. For example, when evaluating a fund administrator, consider how they account for pending redemption proceeds or wires to hedge funds prior to the 1st of the month.
3. Assess Integration Capabilities
   Consider whether integration with other systems or datasets can improve data accuracy and reduce duplicate or redundant tasks. For example, integrating a research management system with a portfolio management system could eliminate the need to set up an investment twice in two different systems.
4. Roadmap and Strategic Alignment
   Look beyond current features—evaluate whether the vendor’s product roadmap aligns with your long-term needs. Do their future plans support where your organization is headed?

Step #2: Evaluate the Team Behind the Vendor

Choosing a vendor isn’t just about the system or service – it’s about the people who support it. That’s why it’s important to understand who you will work with—and how effective and empowered those individuals are. Below are two key areas to evaluate along with practical ways to assess them:

Step #3: Follow the Data or Document Flow

Work with each vendor to trace how data is entered or how documents are collected all the way through to reporting. For example, with an administrator, follow their process from receiving manager reports, to entering or extracting capital statements or transactions into their accounting system, to how that information flows into their performance platform. Understand who touches the data, what is automated (STP), and where human intervention or review occurs.

This exercise provides valuable insight into what working with the vendor or system will be like on a day-to-day basis. As you consider new vendors in the market or assess existing ones in your environment, please feel free to contact us to get our perspective. We are always happy to share our experience and knowledge.

On a separate note, please join us in congratulating Brian Mink on his recent promotion to Partner. Brian’s expertise and commitment to client service have consistently led to exceptional results for our clients. We are excited to see him step into this new leadership role.

Thank you, as always, for your continued support. We hope you had a great summer.

Union Park Consulting Team