Effective Contract Management
How can we do the right things at the right time if we do not know the contents of our contracts?
ProcessWorld 2011
Berlin, June 1st 2011 Michael Neumann
Agenda
Background of the Contract Management study Contract Management – Our understanding
Study results
BearingPoint is a European company with
global reach
Partnership with the
consulting firm West
Monroe Partners for all
projects in North America of our main clients
Partnership with the
BearingPoint Australia
Location of BearingPoint in 14 countries
with 23 offices in Europe
Business Unit
Central Europe for all projects of our main clients
BearingPoint in the world
3 200 consultants in Europe
Agenda
Background of the Contract Management study
Contract Management – Our understanding Study results
Every four years BearingPoint conducts an
international survey
850 enterprises
29 issues-questionnaire 18 countries
Very different lines of businesses Different enterprise sizes
English and German
Added 2010:
- Self-assessment - Expert interviews
The study can help you to find answers to the
following questions
Should my enterprise or department improve its Contract
Management?
What should be the objectives of good Contract Management? How do other companies organize their Contract Management? On which Maturity Level is my enterprise/department?
What can I learn from Contract Management experts?
We want to
Identify “best practices” of Contract Management
Agenda
Background of the Contract Management study
Contract Management – Our understanding
Study results
Contracts can be found in almost every
department of a company.
Contract Management Helps to Improve
Transparency and to Minimise Risks.
The BearingPoint Contract Management
Maturity Model uses an holistic approach
REACTIVE
“REACTIVE” :
Awareness and action occur in response to issues. Action is either system- or department-specific. Enterprises use storage systems for data and documents and introduce low-level regulation for processes concerning contracts. “PROACTIVE” :
The organization places much greater importance on contracts. Enterprises start to centralize action. Central archiving and basic search capabilities are provided. Partial existence of enterprise-wide rules.
PROACTIVE
OPTIMIZED
MANAGED
“MANAGED” :
Contracts are managed as an enterprise asset, well-developed processes for capturing, classifying, verifying and storing exist. Organizations provide detailed rules and internal control systems.
“OPTIMIZED” :
Contract Management is a strategic initiative. Focus is on continuous improvement of rules and
Agenda
Background of the Contract Management study Contract Management – Our understanding
Study results
Keep it simple!
Define the objectives!
Management support is crucial!
Define clear regulations and standard
processes!
Talk to all stakeholders!
Don’t underestimate change management!
We have got Expert Recommendations for
Contract Management Projects
Key aspects of contract management are
related to contract controlling
Enterprises demand more centralisation of the
Contract Management tasks.
Most of the enterprises consider contract
Enterprises see the need for improvements within contract reporting capabilities, IT tools and audit trail
The most important task of IT systems in Contract
Management is the electronic filing and archiving
The most important interface is the Enterprise
Ressource Planning (ERP) System.
Customers want:
Compliance with terms and conditions or
legal requirements
Monitoring
Risk management
Process improvement and mapping to IT tools
Consistent information
Reporting, analysis, tracking
Interfaces to Enterprise Resource Planing (ERP-) systems
Customers expect strategic, process
organisation, IT and research support
Agenda
Background of the Contract Management study Contract Management – Our understanding
Study results
Which areas of Contract Management are
covered by Software AG solutions?
Contract Management area Solution from Software AG
Content
Definition of contract templates Definition of standard conditions,
Filing (structured, complete, secure, central) Versioning, audit trail
Fast search and retrieval of documents Definition of search criteria
Controlling
Compliance Monitoring
Risk Management
Approval, Signing, Workflow Reporting
Process
Definition of standard processes for certain contract types or
departments
Definition of rules and regulations,
Support of each single phase of the contract lifecycle
Interfaces to other processes, e.g. payment or order processes.
Organization
SOA Governance
Application Integration
Comprehensive Integration Solutions BPMS
Business Process Analysis Enterprise Architecture Tools
We are looking forward to support you in your Contract Management initiative! BearingPoint GmbH Ganghoferstr. 29 D-80933 München Michael Neumann
Senior Technology Consultant
BearingPoint GmbH Kurfürstendamm 207-208 10719 Berlin Germany Tel: +49.174.3273529 Michael.Neumann@bearingpointconsulting.com
IN TEG R A TION P R O CES S MS Word, e-Mail U SERS ¬ Authentification
¬ Security und Data Protection ¬ Reporting
¬ Central User Interface etc…
EVALUATE EXECUTE
