Contract management best practice
Pro-active methods for increasing performance and avoiding problems
One-day training workshop with half-day follow-up
This is a highly practical, interactive and personalised business skills workshop. Participants will learn the knowledge, skills and techniques to pro-actively manage both contracts and suppliers quicker and with more confidence, accuracy and effectively.
The training includes a small project following the training, a follow-up half day workshop to ensure maximum benefit and utilization of learning points.
Who will benefit?
All those involved in selection, operational management and communication with suppliers, of all types and sizes.
Key learning points include:
- Tools and techniques for monitoring suppliers, managing contracts and correcting problems proactively, especially linked to higher value/higher risk contracts.
- Understand the difference between procurement, supplier management and contract management.
- Prioritise problems more pro-actively, accurately and consistently in order to address as needed and in their early stages.
- Improved knowledge of how best to monitor, review and ‘police’ contract performance and progress.
- How best to develop and use KPI’s, predictive metrics and early warning signals.
- Developing a three-stage approach to turning around problems, issues and mistakes.
- Best practice telephone and email skills to make your points clearly and appropriately.
- How to facilitate a supplier meeting to resolve any issue.
- Practical problem-solving techniques and methods.
- Know how to negotiate from a position of both strength and partnership
The workshop will contain many real-life examples, will be facilitated by an experienced senior training consultant with a solid background and proven track-record in all aspects of contract management.
Contract management best practice – course outline
One-day 09.30 to 16.30
Four main sessions:
Introduction to contract management best practice
- Test your knowledge of procurement – quick quiz
- The importance and role of CM within procurement
- An introduction on what can go wrong and right with causes and effects
- How procurement, supplier selection and contract management all link together
Case studies and examples
- Why we have to manage contracts and the benefits when we do
- A review of three real-life examples
- The three R’s of contract management: Reviewed, Reinforced and Recorded
- Key skills required to manage contracts effectively with self-assessment questionnaire
Measures, metrics and early warnings
- Using the 8020 rule and risk assessment principles to identify the most likely contracts to focus on
- Defining practical and easy to use KPI’s with small group exercise and case-studies
- Effective supplier measurement and spotting early warning signals
- Legal, policy and procedural issues
Contract management / supplier review meeting
- A three-part practical and planning exercise around a realistic detailed scenario to learn new ideas on reviewing and reinforcing a poorly performing contact and supplier. Involves pre-meeting planning and meeting management, plus writing a follow-up report. (This will be prepared before the training in consultation with client and participants).
Action plan and course summary
Best practice contract management – Half-day follow-up workshop
Participants present back on their results, progress and experience in the following areas:
- Review of progress in implementing individual learning points
- Assessment of current contracts based on methodology from first workshop
- Update on actions carried out on cat 1 and cat 2 contracts or suppliers
- Feedback on meetings and discussions held since the first meeting
- Creating self-monitoring suppliers with scoring system
- Developing ‘listening loops’ within your organisation
- Practical negotiation techniques to solve difficult situations
- Five modes of negotiation and how to create movement when discussions are stalled