The 12 Best Practices in Contract Management
The future of procurement – driving downstream benefit realisation
By Dr Sara Cullen, University of Melbourne
Today’s procurement organisation is under constant change, as organisations move from a traditional pyramid structure to a diamond-shaped one. Strategic sourcing, category management, and supplier management are all part of today’s procurement kit bag. Not only does procurement need to buy better, manage demand better, and understand markets better, it now has to manage the contracts that it put in place. It no longer stops halfway through the contract life-cycle.
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 that be due to value or risk).
This paper explains the 12 best practices in contract management that yield results.
About the Author
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 leader for the outsourcing practice.
Sara has written over 135 publications to date. She has featured in such publications as the AFR, BRW, The Bulletin, Directions in Government, The Financial Times, Information Economics and much more. Her expertise is globally recognised and she performs peer reviews for the Harvard Business Review, California Management Review, and IEEE Transactions on Engineering Management.
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