The Future of Contract Management
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This document summarizes the results of a survey conducted by the International Association for Contract and Commercial Management (IACCM) about the future of contract management. The survey found that 61% of respondents believe contracts will shift from legal instruments to economic instruments. Most organizations are in the early stages of contract management maturity, but want to advance to integrating contract management into broader enterprise systems by 2020. Key steps to achieve this include gaining executive support, cross-departmental collaboration, and developing an enterprise-wide contracting strategy.
The Future of Contract Management
- 1. B S The Future of Contract Management IACCM Microsoft Information Services Group © 2012 Ariba, Inc. All rights reserved.
- 2. The Future of Contract Management • What will contract management look like in 10 or even five short years from now? The world’s leading Contract Management association looks at business and YOUR future. IACCM surveyed industry innovators for their visions around Contract Management and shares their findings. 2 © 2012 Ariba, Inc. All rights reserved.
- 3. Our Speakers Tim Cummins Michel Gahard Bill Huber CEO Associate General Counsel Partner and General Manager International Association for Microsoft Corporation Information Services Group Contract & Commercial (ISG) Management 3 © 2012 Ariba, Inc. All rights reserved.
- 4. The Contract Will there be a shift in the emphasis between contracts as a legal instrument versus contracts as an economic instrument? No 39% Yes 61% 4 © 2012 Ariba, Inc. All rights reserved.
- 5. The Approach 5 © 2012 Ariba, Inc. All rights reserved.
- 6. Lifecycle Maturity Where we are Where is your organization in terms of CM maturity? Processes are manual and contracts are not centralized in a repository. Standard templates may exist (not 6% centralized) and terms may be consolidated in an Excel spreadsheet. 10% 21% An electronic repository exists including some contracts and perhaps templates. The repository includes most active contracts, templates and a clause library. Automated work flow . A decision has 21% been made to acquire a Contract Lifecycle Management (CLM) Solution. CLM Solution has been implemented. Performance and compliance data is monitored. 42% The CLM tool is part of the overall enterprise information system (e.g. interfaces with ERP, supply spend and CRM systems). All types of contracts (procurement, sales and internal) are managed. 6 © 2012 Ariba, Inc. All rights reserved.
- 7. Lifecycle Maturity Where we want to be Where would do like to see your organization in 2020? An electronic repository exists including some contracts 4% and perhaps templates. 14% The repository includes most active contracts, templates and a clause library. Automated work flow . A decision has been made to acquire a Contract Lifecycle Management (CLM) Solution. 18% CLM Solution has been implemented. Performance and compliance data is monitored. 64% The CLM tool is part of the overall enterprise information system (e.g. interfaces with ERP, supply spend and CRM systems). All types of contracts (procurement, sales and internal) are managed. 7 © 2012 Ariba, Inc. All rights reserved.
- 8. Lifecycle Maturity How we’re going to get there Three steps that will be most important to achieve your goals 70% 60% 59% 1. Departmental Collaboration 51% 2. Executive Sponsorship 50% 3. Enterprise Contracting Strategy 43% 40% 38% 30% 30% 22% 19% 20% 13% 10% 0% Getting executive Closer collaboration with Better comfort around Cooperation with IT (e.g. Connecting with other Develop clear alignment Develop enterprise Improved functionality in management legal, procurement, sales security and documents supplementing ERP systems for compliance between business contracting strategy a Contract Management sponsorship of a contract and other departments residing in the cloud and/or moving to the such as e catalog and strategies and market tool - please note automation initiative / working together cloud) purchase order policies and the internal specifically in comments Creating a compelling generation or order performance business case for management for the sell measurements sponsorship side 8 © 2012 Ariba, Inc. All rights reserved.
- 9. The Panel Tim Cummins Michel Gahard Bill Huber CEO Associate General Counsel Partner and General Manager International Association for Microsoft Corporation Information Services Group Contract & Commercial (ISG) Management 9 © 2012 Ariba, Inc. All rights reserved.
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Editor's Notes
- #7: 84% are manual or have only a repository, 21 % are manualOnly 6% have achieved maturity – All contracts (sales, procurement) Part of the enterprise info system integrated with ERP and other systems
- #8: Yet 82% want a CLM in place within 8 years including 64% wanting a very mature system.
- #9: Working together, closer collaboration between depts.