Presentation to National Contract Management Association, Rio de Janeiro, Brazil 4 August 2011

1. Effective Contract Management Dr Gordon Murray

2. Contract Management When does it start? When does it end? Who ’ s responsible?

3. Effective contract management is about delivery of the required outcome

4. Contract management requires effective upstream and downstream management of the contract award

5. Procurement Cycle 8. Closure / Review Need 1. Identify problem 2. Develop Business Case 3. Define Procurement Approach 4. Competitive procurement 5. Tender Evaluation 6. Award Contract 7. Manage Implementation of Contract

6. Who should be involved in contract management?

8. Should all contracts be managed in the same way?

9. Tools for differential contract management

10. Pareto and ABC Analysis

11. Kraljic ’s Procurement Positioning Model Bottleneck Strategic Routine Leverage Supply Market Complexity/ Risk Expenditure

12. Supplier Positioning Model of potential customers Development Core Nuisance Exploit Attractiveness of account Relative value of account

13. Power dependency Buyer dominance (>) Interdependence (=) Independence (0) Supplier dominance (<) Attributes to buyer power relative to supplier (Cox, 2003) Attributes to buyer power relative to supplier

15. Service delivery management

18. Closing the contract

20. Effective Contract Management Dr J Gordon Murray [email_address] www.Twitter.com/DrGordy www.slideshare.net/drgordonmurray