Spend Matters Papers: Contract Management – making the business case for investment

So here’s a plan - through August and into September we’re highlighting all the research papers, briefings and so on that we’ve produced in the last two and a half years. We’ll  include what we said when we first launched it, and of course the link so you can download – free on registration. And they haven’t dated, in our opinion.

Today we have two for the price of one – the first two papers ( in a three part series) titled “Contract Management – making the business case for investment” -  sponsored by BravoSolution.

 Here’s what we said when we launched the first paper in the Spring. (And the second paper can be downloaded here).

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Contract management continues to be an area of huge opportunity for many organisations. I’m not sure I’ve ever met a senior manager, procurement or other, who said,  “yes, we’re really, really good at managing our key suppliers and contracts”.

More often, it ranges from the real problem organisations, who don’t even know which contracts are in place, to those who may have some grip on that administrative side of things but don’t pro-actively manage to obtain the best outcomes that are possible from good practice.

What is strange perhaps is that whilst most people and organisations will admit their imperfections, so many have no plan to improve and have not invested to address the situation. It’s a bit like saying, yes I know we have a leaky roof and it’s costing me a fortune in cleaning and ruined carpets, but I don’t know, I just haven’t got round d to getting it fixed.

Anyway, in our new research paper, “Contract Management – making the business case for investment”,  sponsored by BravoSolution, we’re taking a slightly different approach to simply suggesting what good practice looks like in this area. Rather, we’re trying to assist organisations and individuals who want to put together a compelling business case for investment in contract management, whether that investment is represented by additional or better resource, training, tools or other solutions.

So, we’re putting together a short series of three briefing papers to cover development of the business case. This is the first of the three, with the next two to follow shortly. The initial instalment covers some of the overarching justifications for investment in contract management, and sketches out a format for a business case. It also lays out our fundamental hypothesis about contract management, and therefore about the justification for doing it at all – it’s all about opportunity and risk.

We hope this meets a need. Our hypothesis is that everyone knows contract management is important, but many struggle to convert that belief into something that will actually make the CFO say,  ”OK, here’s a few hundred thousand to spend on improving contract management”.  (This all fits with our Real World Sourcing expert briefing in April on Contract Management by the way).

You can download the paper here, free on registration. And we’ll have more on the topic shortly, and on another tool BravoSolution are providing to help you make that case successfully.

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