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IACCM Contract Management Forum

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Allianz Technology
2017-06-06 07:06:35

Performance of Contract Management

I'm curious to get inputs about the performance assessment of contract management.

While other roles have defined metrics (for instance, procurement roles can be measured by savings, number of contracts and other achievements), I find it difficult to measure the performance of contract managers.

Contract Managers get involved tasks in several areas, such as governance, negotiation, change process, deliverables and obligations' tracking, exit management, and many more, I'm not being able to define consistent metrics to measure performance (notice that I'm not talking about performance of a supplier or a contract, but of a contract manager).

Any inputs? How contract managers are evaluated in your corporation?
 
 •  IACCM  •   2017-06-06 14:15:02
Dear David,
The performance of the Contract Manager role and the performance of the Contract Management Process in general is one of our key points in each one of our recent IACCM anual conferences and networking events, as the matter takes us to the question: "How should we measure and demonstrate success?"
Indeed, while transactional performance is clearly important, it rarely offers the insights that we need, if we are to raise our status and our contribution.
Our thinking and our measurements must start to focus on driving benefits at a portfolio level and relate directly to achieving the strategic goals of our business.
Value will be delivered through a process based view, through monitoring the outcomes of what we do, through generating measured innovation and continuous improvement.
This depends upon capturing and analysing performance data, through challenging established rules and procedures, through inspiring the new models and approaches we have discussed this week. And it also depends on courage - developing leadership and influencing skills.
Keep in mind one of IACCM survey findings: 'Contract Management is one of the least automated processes... and this results in inefficiency and weaknesses in PERFORMANCE oversight, as well as in the absence of management reporting and information'. Here we value the importance of Contract Management Automation and that´s why we are focused on this topic in recent Ask the Expert sessions and in our future events (Australasia and The Americas conferences).
Best regards,
Pablo Cilotta
 
 
 •  Sysintellects  •   2017-06-06 20:34:54
Dear David, have you thought about listing out every task that contact managers are responsible for in your corporation then, assigning a numerical value to each task. Then, assigning a score to each task to analyse and create a quantified report on your overall contract management performance?

e.g. you mentioned governance, negotiation, change process as a few of the tasks. Perhaps you could write these tasks in a spreadsheet and assign values like so:

Total Value = 100

Governance - 30
Negotiation - 20
Change Process - 10
Deliverables Tracking - 10
Obligations Tracking - 10
Exit Management - 20

Then, for each contract manager, you could assess their performance based on a score. Score could be for example, between 1 and 10.

e.g.

Score Values = 1 through 10

Performance Assessment for: Joe Smith (Sr. Contract Manager) for Q1

Governance - 30 - 8
Negotiation - 20 - 6
Change Process - 10 - 9
Deliverables Tracking - 10 - 9.5
Obligations Tracking - 10 - 7
Exit Management - 20 - 9

You could average each of the score values and weigh it against how important each of the tasks are (based on their numerical value). From a high level point of view, based on these numbers, you could create a percentage of "contract management performance efficiency" per quarter/month/week/day for each of your contract managers.

This is just one idea. As full disclosure, I work with a contract management software vendor where we help our clients effectively manage their contracts online. We don't have this particular feature built out on our software yet, but would be open to discussing further and building it our for you in our Analytics & Reporting function, if you'd be interested.

Feel free to contact me directly at nazar.abdul@sysintellects.com

Hope the above ideas help!
 
 
 •  Academy Sports + Outdoors  •   2017-07-31 16:44:04
The less standardization you have on your services the greater the difficulty will be in establishing useful performance metrics that span your portfolio. For example, a BPO contract or a customer IT services agreement will have many specific considerations that can lengthen the time of negotiation and result in contracts that vary substantially from other contracts in the same portfolio.
 
 
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