The 12 Best Practices in CONTRACT MANAGEMENT
The future of procurement – driving downstream benefit realisation
Presenter: Dr Sara Cullen, University of MELBOURNE
With introduction by Jonathan Dutton, Interim Sales & Marketing Director, Open Windows
Date of webinar: Tuesday 6th October 2015
About the Webinar
As the procurement profession matures, and savings tend to zero over time, contract management increasingly offers the greatest potential for procurement to make a difference for their organisation – the new place to generate real value.
At the half-way stage of the purchase process (contract signature), it becomes the capture of business benefits, controlling the total cost of contract (not just prices), and collaboratively responding with providers to challenges that arise, that truly matter.
Contract management has historically been the domain of the business; procurement’s job was to get the right provider at the right price. No more; old silos have been cracked wide open. The business hasn’t managed contracts particularly well and now it’s up to procurement to lead the way. As your organisation moves towards greater levels of contracting, and becomes more dependent on third parties, contract management becomes one of its core activities. It can’t be left to people to do in addition to their ‘real job’.
An investment in contract management is the only way a contract’s benefits can truly be realised and its risks managed. Merely signing a contract isn’t sufficient for any commercial deal of importance – whether by value or by risk profile.
In this webinar, Dr Sara Cullen explains the 12 best practices in contract management that yield business results. These are divided into four key areas: CONTROL, INTERACT, ADAPT, PLAN:
Sara will explain these four key areas in details and the twelve best practices that fall within them.
Of course, not every organisation, nor every contract, needs to be managed to best practice standard. But to progress from passive and reactive contract administration to the proactive leadership in contract management required today, every procurement organisation needs to contemplate how it will rise to this crucial role.
Today’s procurement organisation is under constant change, as organisations move from a traditional pyramid structure to a diamond-shaped one as they outsource more and more.
Procurement’s new role is as a partner to the business in getting the results it needs and as a partner to the provider market in working competitively, yes, but also collaboratively with both stakeholders and suppliers in getting nonstop value.
Strategic sourcing, category management, and supplier relationship management are all part of today’s procurement kit bag. But not only does procurement need to buy better, manage demand better, and understand markets better, it now has to proactively manage the contracts that it puts in place to ensure success and bring even greater value – not least from innovation. It no longer stops halfway through the contract lifecycle.
About the presenters:
Dr. Sara Cullen is a Fellow at the University of Melbourne, a Research Associate at the London School of Economics, and the Managing Director of The Cullen Group. Previously, she was a National Partner at Deloitte in Australia as the global thought leader for the outsourcing practice.
Sara specialises in the design and management of commercial agreements. She has consulted to 150 commercial and government sector organisations, spanning 51 countries, in over 195 contracts comprising $18 billion in contract value. She has run educational programs across Asia Pacific and the Americas for 5200 participants. She is also a widely published author, Sara has written over 135 publications to date. Her Phd is in Contract management.
Jonathan Dutton, Interim Sales & Marketing Director, Open Windows
Jonathan Dutton was founding managing director of CIPSA, the peak body for procurement in the region. Since leaving CIPSA in 2013, Jonathan has worked as an independent management consultant and is currently working part-time as Interim Sales and Marketing Director for Open Windows.