IACCM Contract Management Forum

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James Walker Group Limited
2017-02-02 16:39:58

Contracts team size

I wondered what size of contracts teams other companies on IACCM have please?

What is the approximate ratio or % contracts management personnel to other types of employees? What size of company is it to put it in context?

Ideally I would love to hear specifically with company names as I don't think it discloses anything confidential and it would help with context. In any event I would be grateful for any feedback/ input whatsoever to try and get a gist of what other people have.

I realise that ideal size of team depends on the types of contracts, specific remit, whether you are generally supplier or customer, etc but it would be interesting to know anyway.

Many thanks all!
 •  World Commerce & Contracting  •   2017-02-02 17:10:26
Be sure to check out the Thought Leadership Webinar - IACCM's 2015 Benchmarking Study Results


...and also the 2015 benchmark report available since 2016 in the resource library. IACCM will be conducting a refresh of the research in 2017 (typically every 2 years).
 •  World Commerce & Contracting  •   2017-02-02 19:35:50
Dear Kirstie,
Without jumping into specific company names, I would strongly recommend to analyse IACCM Benchmark Report, www.iaccm.com/resources/, in addition to our regular Talent Survey findings (please refer to IACCM library), without disregarding this blog written by Tim Cummins on "Commitment Matters":
How many Contract Managers do you need?
Author: Tim Cummins
It is planning season so I am increasingly being asked for data to support headcount and resource estimates. The question of how many contract managers do you need applies to both contract management and commercial management and for organizations large and small.
As IACCM benchmarks have consistently shown, the answers on headcount and budget are highly variable, but driven by a range of broadly consistent factors. These include obvious considerations such as the scope of the role being performed, the extent of use of offshore / outsourced resources and the relative complexity of the underlying workload.
There is extensive variation in how contract management is performed and this is reflected in the visible level of cost. Even where there are dedicated resources, the average cost ranges from approximately 0.1% of revenue to 0.7% of revenue. Often, the identifiable resources are just the tip of the iceberg - and in some cases, the iceberg is completely concealed. For example, in a study recently conducted by IACCM, we discovered one company where contract management was costing $30 million in legal resources alone, representing almost 30% of the average lawyer's workload. In another, the role was performed entirely within business units at an estimated cost of more than $200 million.
As identified in the IACCM 2015 Benchmark Report, dedicated contract management resources generate significant efficiencies and cost reduction. But the picture is no longer simple because the nature of those resources is changing fast. In the past, contract management would be performed by a dedicated business function or professional group and the activity depended on people. Today, as we work with organizations on their forward plan, the nature of the skills required is shifting and the extent of automation is growing. The contract management function is poised for major changes which will also transform the value it can provide to the business.
Please refer to commitmentmatters.com/2016/11/01/how-many-contract-managers-do-you-need/
Hope this helps, Kirstie,
Kindest regards
Pablo Cilotta
 •  Oracle Corporation  •   2017-10-26 16:00:06
Mark and Pablo, I've taken a look at the Benchmark Report, and I have a question.
On page 16, where you ask "What volume of contracts / negotiations you feel it is reasonable for one professional to be handling at any one time?" what does this metric represent? Is that total matters assigned a professional at any given time, or does this represent the number of matters that an analyst works on/touches in a day/week/month?
Replies: 3
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