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Contracting Excellence: Organization

January 16, 2013

Yesterday’s blog focused on process and suggested a number of questions we should be asking about its structure and effectiveness.

For many reasons – mostly political – we are all much more interested in organization than we are in process, yet defining process is a critical pre-cursor to establishing organization. Developing a high-performing process demands that we define roles (not jobs) and the skills required to perform those roles. Based on this analysis, we can start to define the optimum model for organization and the quantity and quality of resources needed for its performance.

Another key influence on organization is the business priorities and goals. These have significant effect on contracts and commercial groups, especially in where they find themselves reporting. So here are a few questions that may be interesting for you to consider:

  1. How well aligned is our organization with our process?
  2. Does our reporting line correspond with the goals of the business; are we able to perform in accordance with executive strategy?
  3. Have we effectively analyzed the balance between full-time contracts experts versus knowledgeable and empowered people within the business?
  4. Who should ‘own’ contract management as a function – where should it report?
  5. How should the contracts organization be measured?
  6. One or many? Is contract management an integrated capability? Should it cover both buy and sell within a single group?

Of course, IACCM has data (and opinions!) related to all these questions, but I would welcome your thoughts.

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