Wednesday 25 September 2013

Communicating the Power of Contract Management

By Pete Hodgkinson

Many organisations are still trying to build a business case for contract management internally.

Effectively communicating why it matters and how it will improve not only the negotiated deals procurement have put in place, but the broader organisation is an important component of a business case. If you want to become a strong advocate for contract management, you need to communicate to the decision maker:

· The opportunities that contract management can uncover

· The risks that it can mitigate

· The resources you need to be successful: training, technology, staff and most importantly, budget

· Examples of success, which may come from other business units or departments within your organisation, or your peers in the industry

· Who should own contract management: procurement, category managers, end users or another department?

The benefits of contract management are evident, but convincing your organisation to make an investment is still challenging. Keeping these points in mind though will help you to build a strong business case for contract management.

Have you had to build a business case for contract management? What resonated with your organisation’s decision makers?

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