you are now part of the only global non-profit association for the contracts and sourcing community ...

You are now part of the only global non-profit association for the contracts and sourcing community

IACCM has more than 13,000 members in 113 countries and over 150 corporate members

More than 4,000 professionals are currently enrolled in IACCM Managed Learning and Certification programs; groups from 53 major corporations are currently in process

IACCM undertakes more than 200 research projects each year, most commissioned by its members

We have almost 60 ‘communities of interest’ each with average membership of 1,800

Our members can network, post questions, build personal contact groups – a true professional networking site

The library contains over 3,000 articles, presentations and audio recordings

IACCM participates in worldwide change initiatives to support the quality and integrity of world trade

Trends In Contract Management: An Overview For Professional Development

What we do is becoming more important

External relationships are becoming more important

•Shift from integrated enterprises to value networks•Need for increased flexibility and adaptability•Greater visibility – ‘judged by the company you keep’

Complexity of relationships is increasing due to unfamiliarity

•Service innovation redefining the role of the user and provider•Global markets create heightened uncertainties•Speed of change forces continuous re-evaluation•Executive accountability demands new approach to governance

“Staff engaged in financial and risk control must be independent, have appropriate authority, and be compensated in a manner that is independent of the business areas they oversee and commensurate with their key role in the firm. Effective independence and appropriate authority of such staff are necessary to preserve the integrity of financial and risk management ....” (G20 Final Communique, April ‘09)

“It is essential to have the capacity to carry out robust and thorough management and oversight of contracts in order to achieve program goals, avoid significant overcharges, and curb wasteful spending.” (White House Memorandum, March ‘09)

The focus of our efforts must change .. and become better defined

1. Recognize strategic and operational importance of contracting

2. View contracting competence as a source of economic value3. Ensure contract and commercial terms, policies and

practices support the desired relationship4. Pursue ‘ease of doing business’ as a source of competitive

advantage5. Invest in tools and systems that automate control and

support portfolio management6. Develop appropriately skilled and trained professional staff7. Increase focus on post-award relationship governance and

value realization8. Ensure integration of commercial / contract management to

support advanced approaches to risk management and corporate governance

9. Undertake commercial / contract-related research and benchmarking on a regular basis

10. Drive continuous improvement through defined ownership and accountability

We must be clear about the scope and the

contribution of commercial / contract management What do we do? How do we demonstrate its value? Do we have the right skills and

knowledge?

We must communicate our changing value

Continuous

improvement

COMMERCIAL / CONTRACTING PROCESS

ECONOMIC VALUE

Perf

orm

anc

e Im

pact

Short-termSmall

Cost cutting

Sustained cost reduction

From Willcocks & Craig, ‘Collaborating to Innovatë’

Contract Administration

PHASE 1 PHASE 2 PHASE 3 PHASE 4

Contract Management

Relationship Management

Collaborative Innovation

Time / Value

Behavior

Top 10 Today Top 10 in the future

1 Limitation of Liability Scope and Goals

2 Indemnification Change Management

3 Price / Charge / Price Changes Responsibilities of the Parties

4 Intellectual Property Communications and Reporting

5 Confidential Information / Data Protection

Service Levels and Warranties

6 Service Levels and Warranties Price / Charge / Price Changes

7 Delivery / Acceptance Delivery / Acceptance

8 Payment Limitation of Liability

9 Liquidated Damages Dispute Resolution

10 Applicable law / Jurisdiction Indemnification

Copyright © 2008 IACCM. All rights reserved.

OUR MEMBERS

•Representing over 2,800 corporations

•From 104 countries

•11,500 individual members, 150 corporate

•More than 25% at director level or above

•Equal divide of buy-side and sell-side – Legal, Commercial, Procurement

A Unique Community, poised to make a global difference

Raising the profile and status of our community ... worldwide