The first installment in our statement of work best practices series tried to answer the question, “What comes before best practices?” We soon realized there isn’t an easy answer. While some companies discover they aren’t complying with SOW contract terms, others may find their pricing structures and payment practices are the problem. Bottom line: Companies often discover what best practices look like only after they’ve recovered from a few bad ones. In our experience, implementing best practices that help organizations control costs, avoid risks and deliver deeper savings can be one key to SOW success. Here are a couple of real life examples of not-so-great practices that led to positive changes.
Spend Matters welcomes this sponsored article from Michael Matherly, who leads the SOW practice for Geometric Results, the world’s largest independent, conflict-free MSP solutions provider.
We all strive to instill best practices in our organizations — I’m a procurement guy, so those revolving around sourcing, contracting and vendor management are what I seem to be constantly pursuing on behalf of our clients. Recently, I’ve been thinking about what precedes these so-called best practices. Were they actually the worst practices or were they the result of an organization’s a natural tendency to settle on adequate or merely sufficient practices?
This fall, Spend Matters is conducting a survey of overall vendor management system (VMS) pricing trends in the market. But in the meantime, we thought it would be useful to share a joint perspective with an industry expert specifically around VMS and managed services provider (MSP) pricing and business model trends for supporting statement of work (SOW) programs. As SOWs become a larger percentage of typical services procurement expenditure in more mature procurement organizations — and as specialized technology and managed services offering continue to develop to support these programs on an end-to-end lifecycle basis — it is becoming increasingly important to think about managing these efforts in a dedicated manner. This Spend Matters PRO analysis provides insight into how procurement organizations can more effectively engage VMS and MSP providers in support of their requirements based on current pricing and business model trends,including supplier-funded models.