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Contract Management December 2009

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How to guide teams and

organizations through the

turbulent waters of today's

contract management

profession.

BY Jennifer Hastedt

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Leadership in the diverse WorLd of ContraCt management

The contracting profession

today is facing several

challenges. The federal

acquisition workforce

is aging, and many

experienced contracting

professionals are reaching

retirement age. Their

absence will leave a large

experience gap between

the remaining senior

contracting professionals

and their junior

counterparts. Also, due

to the current economic

climate, organizations

are reducing resources

and funding for training.

Finally, the profession is

becoming increasingly global,

requiring expert knowledge

of laws and regulations for

contract actions both at

home and abroad.

Leadership in the face of these challenges is critical to maintaining the highest ethical standards, integrity in all actions, and grow-ing the knowledge of junior contractgrow-ing professionals. Effective leaders know it is perfectly acceptable not to know everything, as long as they are willing to ask questions and learn from others. Secure leaders are not afraid to show what they do not know, and will actively learn from the collective “everyone.” Learning opportunities become

the foundation for leaders to strengthen teams to face the challenges affecting the profession through knowledge transfer and open dialog. Great leaders recognize the need for on-the-job and classroom training

The most effective leaders look for “teach-able moments”—opportunities to pass knowledge to others—and are willing to provide such a forum for knowledge- and experience-sharing to move the organiza-tion, team, or individual forward. However, in response to a challenging economy, both government and commercial companies are cutting back by reducing staff, reduc-ing trainreduc-ing dollars, or findreduc-ing ways to do more with fewer resources. This can create a sense of uncertainty in an organization. Therefore, leaders need to find cost-effec-tive ways to train personnel and keep them up-to-date with changing laws and regula-tions. A few ways to do this include:

Attending local training opportunities,

ƒ

Networking through NCMA to find

ƒ

answers, or

Creating internal training

opportuni-ƒ

ties within the organization to share knowledge with others.

There are 11 recognized acquisition career specialties. Contract management is one of those specialties. A “professional” in the contracting career field generally holds any of the following positions:

Contracts manager,

ƒ

Contracts specialist,

ƒ

Prime or subcontracts administrator,

ƒ

Negotiations specialist,

ƒ

Preaward specialist/proposal writer, or

ƒ

Contracting officer.

ƒ

In addition, those working within the con-tracting career field must handle multiple contract types; each requiring varying skill sets to manage them. Also, the Federal Acquisition Regulation (FAR) has varying pro-tocols regarding the different contract types, including “cost reimbursement,” “time and materials,” and “fixed-price” type contracts, each with numerous derivatives.

Addition-where services will occur or items will be purchased, supplemental rules may apply. For example, services performed overseas typically require Defense Base Act Insurance. Also, contractors performing such services may request a Status of Forces Agreement (SOFA), which allows privileges and protec-tions while working in host naprotec-tions outside the United States.

Project Teams

The difference between managers and leaders is that managers are typically given official authority to supervise and direct personnel. Leaders inspire people to work without authority. In this day and age, any person may be called upon to be a project team leader. Great teams have great leaders who encourage and reward both individual and team success.

According to team-building expert Dr. Christopher Avery, “If you want the teams you’re on—whether you lead them or are a member…to perform more highly, then the very first thing that I would implore you to do is to assume personal responsibility for the productivity of the team.”1 A leader does not place blame or

justify problems or failures; leaders take personal responsibility for their actions and assigned tasks. They are vested in the team’s activities and strive for the team’s success, not individual acclaim or recognition. However, personal responsi-bility does not equate to performing other peoples’ work and assignments for them; it requires a leader to hold team members accountable for their actions or inactions. Contracting professionals must also interact with many different types of people—such as buyers, sellers, supervisors, project team members, financial personnel professionals, and other contracting professionals—all from different age groups, backgrounds, beliefs, and experiences. This means that past experiences and training may lead certain personnel to complete work assign-ments in a manner that is inconsistent with a team leader’s expectations. However, an effective leader is able to overcome real or

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setting, guidance, and direction to meet the optimal goals for both the organization and the individual. Leaders must always see the potential within the resources at hand, whether that is knowledge, time, or organizational culture.

U.S. Department of Defense acquisition policy places a great deal of stress on the importance of integrated product and process development (IPPD), which is “a management technique that integrates all acquisition activities starting with capabili-ties definition through systems engineer-ing, production, fielding/deployment and operational support in order to optimize the design, manufacturing, business, and supportability processes.”2 The core of IPPD

consists of Integrated Product Teams (IPTs), which are defined as “multidisciplinary group[s] of people who are collectively responsible for delivering a defined product or process.”3 These teams “are an integral

part of the defense acquisition oversight and review process.”4

However, an IPT is not complete without personnel from different specialties and an official team leader. The specialists each bring specific knowledge, such as contracting, cost estimating, and techni-cal expertise. Each team member should be selected for a good reason—good enough so that the team will not be able to succeed without the participation and input of each person.

Challenges

Truly great leaders have the ability to envi-sion a compelling future for their compa-nies. We consider the CSRF [Capability to See and Realize the Future] as essential in establishing strategic objectives and antici-pating trends, hurdles, and barriers facing the organization. This capacity is often thought of as ending with developing and communicating a strategic vision; however, the vision cannot be realized without estab-lishing and executing strategic objectives within the context of an increasing

global environment. This is the basis for the three dimensions of CSRF: seeing the future, strategic and execution excellence, and global acumen.5

As companies begin to work globally, lead-ers need to undlead-erstand the new business environment they are entering. When procuring services from local nationals in a foreign county, the contracting staff needs to understand local labor laws and tax issues to ensure the potential contrac-tor is appropriately priced and insured to work. Otherwise, the performance risk of the contract is greatly increased. As more work is performed internationally, the required knowledge of contracting profes-sionals is increased. Leaders must ensure the tasks, actions, and training all support reaching the goal.

As acquisition policies are changed and scruti-nized as a result of ongoing federal investiga-tions, contracting professionals also need to maintain the highest ethical standards.

R

E C O M M E N D E D

R

E A D I N G

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The Definitive Guide to Business Finance: What Smart Managers Do with the Numbers (2nd Edition)

by Richard Stutely

Harvard Business Review on Managing Your Career

by Harvard Business School Press

The Contract Negotiation Handbook: An Indispensable Guide for Contract Professionals

by Stephen Guth

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Leaders are needed to ensure these high standards of integrity and quality of work are maintained in the contract profession and that all are held ac-countable to those standards.

A military motto, “Mission First, People Al-ways,” is easy to say, but what does it mean

to leaders and followers? Striking the right balance between accomplishing the

mission, awarding the contract, pur-chasing the needed equipment, and

effectively working with people takes practice and an inner

sense of what is really important. Occasionally, the mission depends on the timely procurement of equipment, which supersedes the needs

of the team members. However, no

success-ful mission is

accomplished at the expense of the staff. Personnel requests, such as time off, sometimes need to outweigh assigned tasks. A leader must be able to manage mission and personnel requirements in addition to other resource limitations. No mission should ever fail because one person is not available. Leaders build teams and departments that mandate cross-training and backup plans to minimize

According to FranklinCovey, “Talented employees need great managers…how long that employee stays and how productive he is while he is there is determined by his rela-tionship with his immediate supervisor.”6

Be-ing a leader is difficult and takes conscious effort and time dedicated to the team and the organization. Leaders need to have ef-fective communication skills, a willingness to truly listen to other people, the readiness to accept other people’s ideas, and the abil-ity to influence the actions of others. Author Art Horn believes that one of the keys of great leadership is empathy. “Get-ting along with others requires the ability to feel what they are feeling and to adjust yourself accordingly,” says Horn. “Your

em-ployees need empathy in order to interact with customers, suppliers, the general

public, and one another.”7 However,

leaders must exhibit the right amount of empathy at the right time. Otherwise, people will not feel invested or empow-ered and may not contribute ideas and full attention to the task at hand. There is no precise explanation for how a leader produces results; however, effec-tive leaders bring out the best in people and organizations simply because of their presence and input. They bring positive culture. They may not even be the actual team leader. For example, the contract specialist who sees a better method to perform the work or a cost estimator on an IPT that can inspire people to work harder and produce additional output in a shorter period of time are two examples of people who clearly demonstrate their leadership skills. They inspire others to excel without undermining the authority of the desig-nated team leader.

It is fairly common knowledge that hon-esty and integrity are vital in accomplish-ing work, and communication is the key to maintaining positive work relationships. In a 2006 survey by FranklinCovey, “Out of 1,375 adults interviewed, 93 percent regarded the ability to communicate as extremely or very important in being a good leader—second only to honesty

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includes inspirational speaking and empa-thetic listening. Communication is an art form and takes practice.

Sometimes, tasks may not be completed as requested. The reason is often because the person had a different interpretation of the task that needed to be completed. This is a classic example of a failure to communi-cate. Effective leaders take the additional time necessary to ensure all involved parties understand the requirements and tasks. They elicit input from the team or subordinates to ensure successful results. Subordinates of great leaders feel they are listened to and that their opinions matter. This creates a positive work culture that produces quality work.

Leading Forward

Very few people receive leadership training; possibly due to the fear that the person you are training may take your job. However, effective leaders are not threatened by other people’s success—in fact, they are encouraged by it. A great leader feels suc-cessful when a subordinate or team member achieves a personal or professional goal. Some people seem to be born leaders, but for everyone else, leadership skills can be built and improved upon through education and experience. To do so, bet-ter communication and effective use of resources is required.

Think about the last great leader with whom you worked. Great leaders seem to be able to make tough decisions, but do not come across as a “dictator.” While leaders should elicit input from the team and subordinates, great leaders know the final decision is theirs to make and they accept personal responsibility for it.

Leaders share up, down, and across teams and organizations. This means interacting with project managers, accounting, techni-cal experts, and human resource profession-als without threatening any of their roles. Leaders are not opposed to doing “grunt work,” such as filing contract documents,

when it needs to be done. They also do not complain because they are not the team manager or were not assigned to the “good team.”

There is general agreement that leaders lead in different ways at different organiza-tional levels. Junior-level leaders accom-plish missions and build teams primarily by using the direct face-to-face leadership mode. In larger organizations, the scope of the missions broadens and leading is more complex. Senior-level leaders and commanders provide vision, influence indi-rectly through layers of large units, build organizations, and create conditions that enable junior-level leaders to accomplish tasks and missions.9

As junior leaders in the contracting profes-sion, we lead by working with others. Our daily interactions encourage people to like us and, therefore, make them want to help with work assignments and to meet goals. As our leadership matures, we influence organizations by creating work environ-ments that foster junior-level leaders. As junior-level leaders, we should seize all op-portunities to observe senior leadership in an attempt to understand what makes them great leaders.

A leader sets the example in words and actions. He or she shares knowledge with team members, asks questions to learn from colleagues, and strives to make organi-zations better. He or she embodies integrity in all actions and takes pleasure from help-ing others succeed.

Being a leader is not a choice, but a belief in accomplishing something larger than any one person can achieve individually. The contracting profession needs leaders to stand up and continue providing high-quality services to organizations in the face of limited resources, an increasingly global economy, and an “experience gap” within the profession.

Leaders can thrive in any environment be-cause they have the confidence, communi-cation skills, listening skills, and willingness to do the job no matter the circumstances.

As John Quincy Adams once said, “If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” CM

About the Author

JENNIFER HASTEDT, CPCM, CFCM, CCCM, PMP, is the proposal manager at TEAM Inte-grated Engineering, Inc. She is also a recent graduate of NCMA’s Contract Management Leadership Development Program and a member of the Greater San Antonio Chapter. She can be contacted at [email protected]. Send comments about this article to [email protected]. To discuss this article online, go to www.ncmahq.org/ cm1209/Hastedt and click on “Join Discussion.”

endnotes

Christopher Avery, “Special Report: Team Build-1.

ing Tips of Team Leadership Masters,” accessed atwww.christopheravery.com/downloads/ team.

Defense Acquisition University Guidebook

2. ,

sec-tion 6.4.1, accessed athttps://akss.dau.mil/ dag.

Defense Acquisition University Web site,

3. www.

dau.mil.

Defense Acquisition University Guidebook

4. , op.

cit., section 10.3.

Dale A. Thompson, Myranda Grahek, Ryan E. 5.

Phillips, and Cara L. Fay; “Search for Worthy Leadership”; Consulting Psychology Journal: Practice and Research 2008; 60(4) (2008): 366–382.

FranklinCovey, “Leadership,” Workshop Partici-6.

pant Workbook (FranklinCovey, 2006): 102. Art Horn,

7. Gifts of Leadership Team Building Through Focus and Empathy (Toronto, Canada: Staddart Publishing, 1997).

Franklin Covey,

8. op. cit., at 103. Headquarters, Department of the Army,

9. FM

References

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