Last week I was running a capability review with an IACCM member company. During a break, one of the attorneys said that he had been struck by the session we had just done on communications and told me a story about his former company.
Today's businesses are directing more and more of their budgets toward a complex web of global specialist providers and suppliers to help deliver on their company's core strategies. A recently released global study of nearly 2,000 publicly traded companies found that 69.9% of corporate revenue is directed toward externalized, supplier-driven costs. In the last three years alone, companies have increased their external spend as a percentage of revenue by nearly 4%. As a result, the role of procurement is magnified. Or, at least, it should be magnified. Suppliers must now be viewed as an extension of the company. Like the internal workforce, they must be incentivized, coached, sanctioned, and rewarded to help achieve corporate objectives. But does procurement really register on the C-suite's radar in a manner proportionate to its growing importance within the organization? And are most procurement departments ready and empowered to take on their new responsibilities? This session discusses the need for procurement to take a step back and review its current value proposition in a more holistic manner. Read more about changing nature of business and procurement's role: Corporate Virtualization - A global study of cost externalization and its implications on profitability, by going to http://insight.proximagroup.com/corporate-virtualization Our Expert: Simon Geale, Solutions Architect Simon leads the Solutions Architecture team within Proxima, responsible for visioning and designing our customer success models. Simon has a long held belief that conventional procurement is often its own worst enemy and sees it as a personal goal to change how businesses view this often underappreciated corporate asset. Prior to joining Proxima, Simon had held various roles in consulting, outsourcing and delivery within multinationals such as Philips Electronics and Accenture. He has also bought nurses for the NHS! Simon holds a Masters in International Procurement (MAI) from ESC Bordeaux.
During May 2014, 124 IACCM members from 24 countries participated in a study aimed at assessing whether utilizing visualisations in contracts would affect their understandability and usability. The participants were asked to answer a number of comprehension questions about a given contract, which was randomly provided either in a text-only, traditional version or in a visually enhanced version, where the same text was accompanied by explanatory diagrams. This report consists of two main parts: an overall presentation of the key test results, plus a list of the results of each participant, identified by a pseudonym. The overall part introduces the key measures of the study, and is thus instrumental in reading also the individual results.
According to Workforce magazine, 'It's easy to recognize a vacant position in your company, but it's much harder to identify the skills a potential employee will need to fill that void. The inability to match qualified people to vacancies is costing companies billions of dollars in lost revenue.'
This week I have focused on the findings of the UK National Audit Office in its investigations on the state of contract and commercial management. Few of its observations will come as a surprise to practitioners in this field. Indeed, it reflects many of their pent-up frustrations in the misalignment of contracting discipline with business value. The relegation of contract management to a subordinate and largely administrative / quasi-legal role has significant cost and revenue implications, as revealed by many IACCM research reports.
Complex projects have the power to make or break. Get the basics right and you've bought yourself time to handle the complexity and risks - and protect the bottom line.
Ask The Expert - Enterprise Risk: Extending Intellectual Property Protection Beyond the Terms of the Contract
Enterprise Risk: Extending Intellectual Property Protection Beyond the Terms of the Contract. Organizations are increasingly aware of the importance of protecting Intellectual Property as part of enterprise risk management efforts. But solely addressing IP within the contract itself is not enough to ensure protection along global supply chains. Our Expert, Craig Moss, takes you through the eight areas you need to tackle during the contract lifecycle to ensure end-to-end IP protection throughout your supply chain. Craig Moss, COO, Center for Responsible Enterprise and Trade (CREATe.org) Craig Moss is a leading expert on using management systems to improve compliance performance within companies and across supply chains. At CREATe, Mr. Moss is responsible for developing and delivering CREATe Leading Practices, a program designed to help companies and their supply chain companies reduce the risks associated with trade secret theft, counterfeiting, piracy and corruption. He has developed guides on implementing management systems to improve compliance for organizations including World Bank Group's International Finance Corporation and the United Nations. Mr. Moss is an Executive Advisor for Social Accountability International (SAI) where he led development of Social Fingerprint and Social Fingerprint Rapid Results, programs helping companies develop and implement improved sustainability practices. Previously, Mr. Moss founded Global Access Corporation, where he led more than 3,000 business development projects in 50 countries.
"I don't really know what I want, but give me xyz and then if I decide I really wanted abc you'll do the conversion work for free." A good way to do business? One sided, you might think! But a real example of what some firms are facing in the world of 'outcome-based contracting."
For decades, businesses have relied on the lawyers' tool of trade - words. But increasingly both law and contracts professionals are recognizing the power of visuals - graphs, charts, text mapping, and schematics - to help improve clarity and understanding This article reflects research by the authors who tested how people respond to visualized contracts versus traditional word only documentation. They worked with an insurance company in Denmark.
IACCM provides executives and practitioners with advisory, research and benchmarking services, contract management certification and training for contracts, commercial and relationship management professionals. IACCM is a non-profit membership organization that supports innovation and collaboration in meeting the demands of today's global trading relationships and practices.