Partner & Vendor Assessment

A comprehensive evaluation framework for technology partners and vendors, combining ISO 44001 collaborative relationship management standards with Big Four Third-Party Risk Management (TPRM) best practices.

What This Tool Does

  • Evaluates vendors across 18 criteria in 6 categories
  • Calculates weighted final score (0-5 scale)
  • Provides clear recommendation: PROCEED / CONDITIONAL / DO NOT PROCEED
  • Enforces due diligence with 12-item checklist (3 mandatory)
  • Supports multi-reviewer sign-off workflow

When to Use This Tool

Use This Tool When:

  • • Evaluating a new technology vendor or partner
  • • Assessing SaaS providers, system integrators, consultants
  • • Performing third-party risk management (TPRM)
  • • Making strategic partnership decisions
  • • Documenting vendor due diligence for compliance
  • • Comparing multiple vendor candidates

Not Suitable For:

  • • Bid/no-bid decisions (use Bid/No-Bid Evaluator)
  • • Product evaluation without partnership context
  • • Internal team or department assessment
  • • One-time transactional purchases
  • • Customer evaluation or qualification

Supported Vendor Types

SaaS ProviderSystem IntegratorTechnology ConsultingCloud ProviderDevelopment PartnerSupport & MaintenanceStrategic PartnerSubcontractor

Assessment Framework

This tool combines established frameworks from collaborative relationship management and third-party risk assessment to create a comprehensive vendor evaluation approach.

1. ISO 44001:2017 - Collaborative Business Relationship Management

The international standard for managing collaborative business relationships. Provides framework for partner selection, relationship governance, and value creation. Categories A (Strategic Fit), D (Cultural Compatibility), and F (Governance) are directly aligned.

2. Big Four TPRM - Third-Party Risk Management

Draws from Deloitte, EY, KPMG, and PwC third-party risk frameworks. The 12-item due diligence checklist and risk assessment categories (B, C, E) follow enterprise TPRM best practices for comprehensive vendor vetting.

3. Veto Authority - Critical Risk Gates

Four criteria can trigger automatic "DO NOT PROCEED" regardless of aggregate score: Technical Expertise, Financial Stability, Compliance Risk, and Reputational Risk. This prevents high strategic scores from overriding fundamental viability concerns.

4. Multi-Reviewer Sign-Off

Separate Business and Technical reviews ensure diverse perspectives. Both reviewers must approve before final recommendation. Conditions and mitigations are tracked with timestamps.

Scoring System

Categories & Weights

CategoryWeightDescriptionVeto Power
A. Strategic Fit20%Vision, objectives, market synergy-
B. Technical Capability20%Expertise, tech fit, innovationYes (B1)
C. Financial Health15%Stability, revenue, investment capacityYes (C1)
D. Cultural Compatibility15%Values, communication, decision style-
E. Risk Profile15%Compliance, operational, reputationalYes (E1, E3)
F. Governance Readiness15%Structure, decision rights, exit strategy-

Score Scale (1-5)

1
Poor/Veto
2
Concerning
3
Moderate
4
Good
5
Excellent

All Criteria (18 Total)

Category A: Strategic Fit (20%)
A1. Vision Alignment (8%) - Long-term goals and vision compatibility
A2. Strategic Objectives (7%) - Partnership goals and objectives match
A3. Market Position Synergy (5%) - Combined market advantage potential
Category B: Technical Capability (20%) - VETO POWER
B1. Technical Expertise (8%) [VETO] - Depth of skills, certifications, experience
B2. Technology Stack Fit (7%) - Compatibility with your environment
B3. Innovation & Roadmap (5%) - R&D investment and product evolution
Category C: Financial Health (15%) - VETO POWER
C1. Financial Stability (7%) [VETO] - Balance sheet health and solvency
C2. Revenue Trend (4%) - Revenue growth trajectory
C3. Investment Capacity (4%) - Ability to invest in partnership
Category D: Cultural Compatibility (15%)
D1. Values Alignment (6%) - Ethics and corporate values compatibility
D2. Communication Style (5%) - Working style and communication fit
D3. Decision-Making Culture (4%) - Speed and process alignment
Category E: Risk Profile (15%) - VETO POWER
E1. Compliance Risk (6%) [VETO] - Regulatory standing and compliance history
E2. Operational Risk (5%) - Business continuity and dependency risks
E3. Reputational Risk (4%) [VETO] - Public standing and brand association
Category F: Governance Readiness (15%)
F1. Governance Structure (6%) - Partnership management capability
F2. Decision Rights Clarity (5%) - Clear authority and escalation
F3. Exit Strategy Clarity (4%) - Dissolution terms and transition

Due Diligence Checklist

A 12-item checklist ensures thorough vendor vetting before partnership decisions. Three items are mandatory - they must be completed before proceeding. If 4+ items are marked "NO" without documented mitigation, the checklist fails.

ItemCategoryDescriptionRequired
DD1. Corporate DocumentsLegalVerify registration, licenses, legal standingMandatory
DD2. Litigation CheckLegalNo pending litigation or regulatory actions-
DD3. Financial ReviewFinancialFinancial statements reviewed (3 years)Mandatory
DD4. Credit CheckFinancialCredit rating and payment history verified-
DD5. Reference CheckReferencesCustomer/partner references contactedMandatory
DD6. Track RecordReferencesPrevious partnership outcomes verified-
DD7. Data ProtectionComplianceData protection policies reviewed (GDPR, CCPA)-
DD8. CertificationsComplianceIndustry certifications validated (ISO, SOC2)-
DD9. Security AssessmentSecurityInformation security posture evaluated-
DD10. Site VisitOperationsFacility or office audit conducted-
DD11. Key PersonnelPeopleKey personnel backgrounds verified-
DD12. ESG ScreeningESGEnvironmental/Social/Governance screening-

Mandatory Items

Corporate Documents, Financial Review, and Reference Check must be completed with "YES" status before recommendation can be PROCEED.

Checklist Failure

If 4 or more items are "NO" without documented mitigation, the checklist fails and recommendation becomes DO NOT PROCEED.

Decision Rules

Final ScoreConditionsRecommendation
AnyVETO triggered (B1=1, C1=1, E1=1, or E3=1)DO NOT PROCEED
AnyMandatory DD items incompleteDO NOT PROCEED
Any4+ checklist items NO without mitigationDO NOT PROCEED
≥ 4.0All mandatory items complete, no vetoPROCEED
3.5 - 3.9All mandatory items complete, no vetoPROCEED WITH MONITORING
3.0 - 3.4All mandatory items complete, no vetoCONDITIONAL
< 3.0AnyDO NOT PROCEED

PROCEED

Strong vendor candidate. Move forward with partnership negotiations and contracting.

PROCEED WITH MONITORING

Acceptable with enhanced oversight. Implement quarterly reviews and KPI tracking.

CONDITIONAL

Proceed only if documented conditions are met. Requires specific mitigations.

DO NOT PROCEED

Too risky - not recommended. Consider alternative vendors or escalate to leadership.

Workflow

1

Create Assessment

Assessor creates new vendor assessment and fills vendor information.

2

Score All Criteria

Score each of the 18 criteria across 6 categories with rationale and evidence.

3

Complete Due Diligence

Work through 12-item checklist, ensuring all 3 mandatory items are complete.

4

Add Conditions (if needed)

Document any conditions or mitigations required before proceeding.

5

Business Review

Business Owner reviews strategic fit (A), financial health (C), and commercial terms.

6

Technical Review

Technical Lead reviews technical capability (B), risk profile (E), may exercise VETO.

7

Final Recommendation

Both reviewers approve, system generates recommendation, proceed accordingly.

Sources & References

ISO 44001:2017

Collaborative business relationships - A framework for identifying and collaborating with partners, establishing collaborative relationships, and delivering value.

iso.org/standard/72798.html

Big Four TPRM Frameworks

Third-Party Risk Management methodologies from Deloitte, EY, KPMG, and PwC. Due diligence checklist and risk categories aligned with enterprise TPRM best practices.

HBR/MIT Alliance Research

Kale, P. & Singh, H. (2009). "Managing Strategic Alliances: What Do We Know Now, and Where Do We Go From Here?" Academy of Management Perspectives.

COSO ERM Framework

Committee of Sponsoring Organizations of the Treadway Commission. Enterprise Risk Management - Integrated Framework for risk assessment categories.

coso.org

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