Читать книгу Contract management with CATS CM® version 4 - Gert-Jan Vlasveld - Страница 20

Organizations commonly classify their activity control levels into: strategic, tactical, and operational levels. These categories can also be applied to the finalization, execution, changing and termination of contracts. This chapter describes the CATS control model, the strategic, tactical, and operational activities related to contracts, and identifies the factors that determine the success of contract management.

■ 3.1 FACTORS THAT AFFECT THE SUCCESS OF CONTRACT MANAGEMENT

The success of contract management depends on three factors. Figure 3.1 shows this schematically. First of all, the contract management policy must be sound and include a contract management process based on CATS CM that allows people to work in a process-oriented, structured, documented, repeatable and measurable manner. Subsequently, to achieve an effective contract management process, it is important to have sufficient and competent people available to carry out the work while being supported by process-aligned systems. The third success factor is the ensuring of contract management when the contract is drawn up, the contract creation. This means that, at that moment, the focus lies on having a good and measurable translation of the contract objectives into WTBD, adequate consequences for not meeting the objectives, assessment of the effects of AOCM on contract management and, where possible, having the AOCM in alignment with the expected contract management structure.

■ 3.2 The CATS control model

The organization’s management is responsible for creating a sound framework within which the activities related to contracts can be controlled and which includes all of the success factors mentioned in the previous section. The CATS control model, shown schematically in figure 3.2, is such a framework.

Figure 3.1 Factors that affect the success of contract management

Figure 3.2 The CATS control model

Later in this section, we will come back to the terms strategic, tactical, and operational, with the activities that take place on these levels. At the strategic level, the organization decides what to do. At a tactical level, it decides how to do this. Who is going to do which activities and when is decided at an operational level.

In the CATS control model at a strategic level we use the term Contract Policy. At a tactical level, we talk about Contract Control and at an operational level, we use the term Contract Management Process.

A solid control model consists of a good policy that ensures consistency with contiguous processes and agreements at the strategic level. It is structured in such a way that it offers a fluent reporting flow from the operational to the strategic level in which systems, reports and procedures are seamlessly linked.

Strategic level - Contract Policy

At a strategic level, we talk about Contract Policy. First of all, it is at this level that the organization determines how to structure contract management at the strategic, tactical and operational levels. Organizations make decisions regarding the nature and type of contracts they enter into. Naturally, the general company policy affects the contract policy. As part of their general policy, suppliers determine which policy decisions they make regarding in which market segments the organization wants to be active, which forms of collaboration they aspire to, the services they want to offer to achieve the targeted position in the market, and the clients they absolutely want to serve or not serve. Clients use their general policy to determine which goods and services they consider to be of strategic interest to ensure the continuity of their organization, and the type of market players they want to do business with. A decision to outsource services is also part of this general policy.

It is at this level that organizations determine their policy when it comes to entering into contracts. This may include:

■ What type/form of contract do I want to have?

■ What type/form of contract do I not want to have?

■ How do we manage the contract risks?

■ What are the rules for contract management?

■ How do we draft a business case for contract management?

■ What are the principles and procedures for contract ownership?

■ What is the definition of tasks, responsibilities and mandates (including procurement)?

■ What information must be provided to control the flow of contracts at a strategic level?

The strategic level determines which elements are necessary for the tactical level. The strategic level also provides the tactical level with a budget.

Tactical level - Contract Control

At a tactical level, the Contract Policy is further elaborated to create manageable processes. The organization is structured based on the choices made on this level. The way to approach these processes, which we present in this book, is CATS CM. Tactical level management ensures that all contracts entered into by procurement or sales departments are in line with the Contract Policy. The tactical level is responsible for managing the operational level, so operational-level management must also be structured by the tactical level in such a way that the operational process can be measured, assessed, analyzed, improved, and adjusted in a timely way.

Management protocols have to be established and available for identifying tasks, responsibilities and mandates, for creating rules for the way Contract Boards are formed, and for internal rules on the frequency of meetings with standardized agendas. The development or selection of methods and systems for contract, project and service management is part of the tactical level, as is the responsibility for full implementation and adequate facilities to apply them. The roles involved in the contracts should be clearly defined within the organization, and the internal allocation of people and resources, as well as training and education, must ensure that the contractual obligations can be met and that compliance can be verified.

Operational level - Contract Management Process

At an operational level – the Contract Management Process – the decisions made at the tactical level, regarding measures, agreements, and obligations, are being carried out, thereby fulfilling the strategic level. CATS CM provides the methods, techniques, procedures, guidelines, and tools that can be used at the operational level to contribute to the cohesion and consistency of the global contract control of an organization.

Administrative measures are necessary at an operational level to ensure that contracts always remain in line with the choices and objectives defined at the strategic level and carried out at the tactical level. The information provided to the tactical-level manager must be such that the timely and effective monitoring of and adjustments to the operational process are ensured.

This approach is designed to enable the contract manager to implement the contract management policy correctly.