The accidental contract manager
If you are involved in contract or commercial management, is it by design, or by accident? And what about your colleagues?
An increasingly lively topic of discussion is just how badly equipped most organizations are when it comes to managing their contracts. Most have hundreds, even thousands, of ‘accidental contract managers’ – people who stumbled into the role from a variety of backgrounds, who then received training (if any) while ‘on the job’ and who work full time or part time creating, negotiating and managing contracts.
On one level, you can hail them as often unsung heroes – the people who manage risks and opportunities, who deliver revenue and savings. Each day. Every day. Often with little acknowledegment.
On another level, just imagine how much more they could achieve if they had structure, tools and systems, regular support and clear goals. We know the answer, of course, because IACCM research has so clearly pointed to the remarkable financial impact sof poor contract management. Lost revenue, missed savings, failure to control or to deliver improvement.
How is it that executives can be quite so oblivious to these weaknesses? Why do they allow such critical assets (their contracts) to be managed in such a haphazard fashion? The answer, of course, is that they generally don’t realize the scale of financial impact it is having, because no one has told them. And no one tells them because either they don’t know, or they think they can’t raise the subject without absolute evidence.
Slowly but surely, organizations are awakening to the issues and the opportunity. Companies like Vodafone, Ericsson and BT from the telecoms sector; ConocoPhillips and Shell from oil and gas; Meggitt from aerospace, Danske Bank from financial services, Atos and CapGemini from outsourcing and IT services and the UK Government from the public sector ….. these are just some of the organizations presenting at the IACCM Europe conference this year, sharing their approach to improvement and the success they are seeing.
The days of the accidental contract manager are numbered. Market pressures are demanding an era of increased professionalism and competence. Be among those who understand the difference and equip yourself to lead. Find out more by joining the established and aspiring leaders at the IACCM Europe conference in Dublin, May 8th-10th.
Discover contract excellence, by design.