Empower Your NPO with Sales Contract Management for NPOs

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so welcome to contract management and well to be fair you should have been thinking of contract management the whole way through at this stage in the procurement journey whilst we are using the word contract management it shouldn't be a new term and it shouldn't be an afterthought we went through the procurement process where we had procurement planning conducting needs analysis looking the market the supplier side looking at our own needs the demand side putting all our ideas together and really coming up with some robust way of achieving what we want then we went through the implementation side of things let's call this delivery it's actually quite hard to write like this but um I think I'm doing an okay job right now we have delivery which is really implementing the procurement then we go through and we've really here we're forming the contract and this area here is what we're going to focus on right now in this session we talk about contract management now the problem is that a lot of people don't deal with this until they hit this point and this is very problematic because as it goes if you think about this model kind of on a on a graph here all right let's call this your level of control all right that's how much influence how much control you have over your procurement over the outcomes you want to reach so let's say in the planning stage your level of control is is max you can do whatever you want you can shape the procurement based on your stakeholders needs you can ask for whatever you want in your request documents you've you've pretty much got card blasts here within financial constraints so your level control is is very high as you start going through this and we'll just you know separate the stages so we've got planning on put that as a one delivery to formation and management as you start going through I mean when you're actually implementing the procurement as time goes on your level of controls dust to go down it always say to people whether it's a joke or not but once you form the contract effectively you've lost control so this thing takes a sharp turn which leaves us with I guess residually not much controlled in contract management now a lot of people say no look we can still do a great job in contract management we can still bring it home we can still save the day and it's that kind of thinking in the early stages you know we'll work it out we'll make it better that often kills in other works great procurement where I say you've lost control basically what I'm saying is that you've now made an exchange and our contractors we've learnt from previous modules and hopefully from this sort of stage is is an exchange between parties take this is our level of control the the red curve now I think of the blue curve is your supplier their level of control over here hopefully especially in the government context should be very very low or they shouldn't be able to control anything as they go through they might have a bit more influence but their level of control only starts coming into place when you start negotiating the contract and start formation when it comes into formation their level of contract control increases it's it's not it doesn't take over your degree of control okay and that's important both parties here whilst they have an elevated level of control aren't in full control of things what is pretty much in their capacity to control is the output of this which is nicely worded your agreement contract management all we can control is our agreement that's it sorry to burst your bubble but what you'll find that as contract managers we're not here to save the day at best we're here to try and retain the value for money proposition that we achieve through these formative stages where possible enhance it but also recognize that our level of control isn't what it was on day zero I mean for a lot of you think of a change if you want to make a change in the planning stage it's nice and easy as you start migrating through it gets a little bit harder and after this point you know a change is something that's different to our agreement here dealing with the free market unlimited supply is a competitive environment here often you're dealing a monopoly and you're probably not going to get the same value for money from that change so whilst we are going to talk about contract management keep in mind that contract management should have happened the whole way through and here and here and here you should have been thinking about how are we going to manage this contract to get the outcomes we want