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The Value of Contract Management

October 24, 2011

It may not be an issue today, but at some point, most contracts and commercial groups face the question “What value are you bringing to the business?” And when that question arises – whether it is to justify headcount or to support a business case for more investment – most contract management groups struggle to describe their value in financial terms.

Without that ability to justify (or even better, having proactively provided management with the data), many groups find themselves subject to the ups and downs of the market, or the whims of management sentiment.

Ironically, it is in Government and public sector that the value of contract management is often most evident. This is because the audit process results in far greater visibility of losses – and with increasing regularity, the auditors are highlighting the weakness of contract management or failures in commercial expertise as key reasons for these losses. Recent examples can be found in many countries and they amount to many billions of dollars (see separate blogs or recent articles at the IACCM website).

To support its members in developing the business case for improved contract and commercial management (both sell-side and buy-side), IACCM is conducting a study to discover the extent of corporate financial losses that result from weaknesses in contracting. Its goal is to support members of the Association in their efforts to gain management support or provide strong rationale for budget and headcount.

Given the nature of the survey, the individual inputs will of course remain confidential (and can be submitted anonymously), but consolidated results will be issued to all identified participants. I hope readers of this blog will take a few minutes to share their experiences at


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