110804 NCMA contract management brazil

110804 NCMA contract management brazil

• 1.
  Effective Contract Management Dr Gordon Murray
• 2.
  Contract Management Whendoes it start? When does it end? Who ’ s responsible?
• 3.
  Effective contract managementis about delivery of the required outcome
• 4.
  Contract management requireseffective upstream and downstream management of the contract award
• 5.
  Procurement Cycle 8. Closure / Review Need 1. Identify problem 2. Develop Business Case 3. Define Procurement Approach 4. Competitive procurement 5. Tender Evaluation 6. Award Contract 7. Manage Implementation of Contract
• 6.
  Who should beinvolved in contract management?
• 7.
  The buying decisionmaking unit Initiator who first suggests buying the product or service Influencer whose comments affect the decision made Decider who ultimately makes all or part of the buying decision Buyer who physically makes the purchase User who consumes the product or service (Wilson, Gilligan and Pearson, 1992)
• 8.
  Should all contractsbe managed in the same way?
• 9.
  Tools for differential contract management
• 10.
  Pareto and ABCAnalysis
• 11.
  Kraljic ’s ProcurementPositioning Model Bottleneck Strategic Routine Leverage Supply Market Complexity/ Risk Expenditure
• 12.
  Supplier Positioning Modelof potential customers Development Core Nuisance Exploit Attractiveness of account Relative value of account
• 13.
  Power dependency Buyer dominance (>) Interdependence (=) Independence (0) Supplier dominance (<) Attributes to buyer power relative to supplier (Cox, 2003) Attributes to buyer power relative to supplier
• 14.
  Relationship management Adversarialcontracting does not necessitate adversarial relationships Effective relationship management requires Mutual respect Mutual trust Mutual understanding Creating an open and constructive environment Contributing to joint management of contract delivery
• 15.
  Service delivery management
• 16.
  Performance management Shapedby the original customer definition of need KPIs identified prior to contracting Likely to be directly linked to tender evaluation criteria KPIs should be Proportionate, fit for purpose, easy to support by evidence, accepted by key stakeholders
• 17.
  Potential outcome basedperformance measures Benefits realised Cost and value obtained Innovation transfer Reduced environmental impact Performance and customer satisfaction Delivery improvement and added value Delivery capability Relationship strength Responsiveness
• 18.
  Closing the contract
• 19.
  Contract management reviewAims to capture the lessons learnt for improving procurement Should include key stakeholders Complete a post-contract review report What worked well? What didn ’t work? What are the lessons for letting this type of contract in the future? What are the lessons learnt for improving procurement performance? Capture and communicate
• 20.
  Effective Contract Management Dr J Gordon Murray [email_address] www.Twitter.com/DrGordy www.slideshare.net/drgordonmurray