By Andy McCue, 6 June 2008 11:00
NEWS
Free junkets, gifts, trips to big sporting events and free gifts are all still tools of the trade used by tech suppliers to try and get business out of CIOs and IT buyers - or 'building relationships' as it's more commonly known.
One blogging CIO in the US has highlighted some of the more inappropriate offers IT chiefs get in this post here.
And three-quarters of silicon.com's 12-strong CIO Jury IT user panel said they still get offered various gifts, perks, junkets and jollies by suppliers hoping to get a foot in the door.
The important thing for IT chiefs is to not compromise their own integrity or put themselves in the position were they could be accused of having taken a 'bung'.
Kevin Fitzpatrick, European CIO for Sodexo, said: "The best test is - would you be embarrassed if your boss found out? Gifts and perks should always be refused but conferences can be useful in establishing good relationships with suppliers and peers."
Tony Johnson, IT director, Zavvi Entertainment Group, agreed, saying: "I am not naive enough to think the invites to rugby/cricket/football etc are purely down to my sparkling company! In all such situations it is important to ensure that your personal and professional integrity remains beyond question, particularly if the supplier in question is one currently engaged in an active negotiation."
But Johnson added that the IT industry isn't different from any other in this practice and that, judging by the offers received by his colleagues in other functions, IT seems to be more principled than most.
One CIO, who wished to remain anonymous, said: "There is some activity from wannabe suppliers trying to lure you in but not enough time spent with existing suppliers who should be working to retain business. And by the way, one supplier once tried sending me an iPod for Christmas - I sent it back as its value was obviously way up on the 'unethical' scale."
Venn Luscombe-Mahoney, head of IT at online retailer White Stuff, said free gifts and junkets are still especially prevalent in the retail arena.
But Mike Roberts, IT director at Harley Street private hospital The London Clinic, simply said of IT suppliers: "I'd prefer them to offer a decent level of service."
Today's CIO Jury wasÂ…
- Ian Auger, IT director, ITN
- Alastair Behenna, CIO, Harvey Nash
- Nic Bellenberg, IT director, Hachette Filipacchi UK
- Chris Broad, head of IT, UK Atomic Energy Authority
- Kevin Fitzpatrick, European CIO, Sodexo
- Steve Gediking, head of IT and facilities, Independent Police Complaints Commission
- Tony Johnson, IT director, Zavvi Entertainment Group
- John Keeling, director of computer services, John Lewis
- Christopher Linfoot, IT director, LDV Group
- Venn Luscombe-Mahoney, head of IT, White Stuff
- Mike Roberts, IT director, The London Clinic
- Richard Storey, Guy's and St Thomas' NHS Foundation Trust
Want to be part of silicon.com's CIO Jury and have your say on the hot issues for IT departments? If you are a CIO, CTO, IT director or equivalent at a large or small company in the private or public sector and you want to be part of silicon.com's CIO Jury pool, or you know an IT chief who should be, then drop us a line at editorial@silicon.com
Comments
There are 7 comments. Join the discussion
1. anonymous
I make up the differnce between my salary and my peers by accepting gifts and junkets. They are the only element that makes my job worth doing. My bosses get loads more than I do and they are obviously not embarresed by it so neither am I as it is an ingrained part of our business.
2. Simon
At my last job we had a rule (company wide, not just IT) along the lines of :
Last items are collected together and go into the Christmas raffle. All employees can buy tickets, and the proceeds go to charity.
Sharable items, eg large tins of chocolates, are shared about.
I was never offered anything to get embarrassed about :-(
3. Cassandra
In the public sector you can accept gifts worth less than £5 without declaring the item, you declare any gifts worth between £5 and £15 and should not accept any gift or hospitality worth over that.
You should never accept any gift that may seen to be questionable or show any preference to one supplier over another - regardless of the monetary value.
In all cases where you make reference site visits and are offered hospitality you must be sure that no preference is shown or appears to have been shown as a result.
That said I think that customers can probably be flattered more easily than they can be bought.
4. Dan Olley
I couldn’t agree more with your article. The key for any IT decision maker is not how sure you are that you won’t be swayed by a gift or event, but whether it could be perceived by anyone that you may have been. I completely agree with Kevin’s stance, the simple answer is that gifts and perks are out. When asked by one of our large suppliers how the could build a stronger relationship with us, the answer was simple, help me, my department and my organisation succeed.
5. Will Weider
Great story. Thanks for covering this important topic.
6. Charles Smith
In the new Country of Puritania let's not lose sight of "Building Relationships"
Good relations with the suppler accounts team can often produce some spectacularly good business deals. When the conditions are right it can save the purchasing company a lot of money. Those types of deals are often firmed up over a good lunch or on the golf course.
A purchasing clerk reading through an electronic price list is unlikely to achive the same results. The stifling rules of the Public Sector do not seem to be particularly conducive to effective business deals. One has to only look at some of the massive external project failures to realise that.
Handling the "jollies" process effectively and efficiently is a clear negotiation skill for good managers. Those administrators without skills and trust resort to rules.
7. Peter Dunkley
"I make up the differnce between my salary and my peers by accepting gifts and junkets. They are the only element that makes my job worth doing. My bosses get loads more than I do and they are obviously not embarresed by it so neither am I as it is an ingrained part of our business."
Wow! I really hope that don't own any shares in your company! This is candid, if true, but you and your organisation seem rotten to the core. If you are being paid less than your peers, you might want to think about changing your attitude if you ever want to make up that ground.