Global Contract Management
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Global Contract Management. Ron Smith Commercial Contracting Conference 2003. Global Contract Management. Management processes & cycles Project cycles Contract cycles Contract management relationships Organization options Global Contract Management issues. Project Cycles.

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Global contract management

Global Contract Management

Ron Smith

Commercial Contracting Conference 2003


Global contract management

Global Contract Management

  • Management processes & cycles

    • Project cycles

    • Contract cycles

  • Contract management relationships

  • Organization options

  • Global Contract Management issues


Global contract management

Project Cycles

Reference Text, pg. 78


Global contract management

Project Cycles (cont.)

Typical High-Tech Commercial Company

Reference Text, pg. 78


Global contract management

Project Cycle Phases

Control Gates

New Initiative Approval

System Concept Approval

System Specification Approval

Production Approval

Operational Approval

Reference Text, pg. 78


Global contract management

Contract Management Cycle

World-Class Contracting, by Gregory A. Garrett, CCH, 2001


Global contract management

Contract Management Relationships (organizational)

Executive Management

Law Department

Product

Management

Maintenance

Support

Contract

Manager

Factory

Consulting Services

Professional

Services

Non-Standard

Terms & Conditions

Pricing


Global contract management

WW Pricing

D. Mol /

Global

Bus Mgmt

Group

Service

Bid/Win &

Sales Service

Manager

Mfg., IM,

EDI, ExtraNet,

Delivery,

etc.

Leasing

Compaq Capital

Gerry Miller /

FAM

Direct Model

P. Hashway

Senior

Financial

Approval

Other

GEO's for

global

capabilities

US Pricing

AM, NASM &

RFM

Global Issues

B. Seidle

Global

Product Div.

For $ and

roadmap

input

Product /

Technical

ETSS /

SE

Legal

Attorney

Miscellaneous

BEM /

Account Team

Product

Marketing

ETSS / BEM

Acct Mgmt

Issues

Account

Team

Contract Management Relationships – Interpersonal

Contract

Manager


Global contract management

Organization Options:Functional (Skill Centers)

  • Strengths

  • Skill Development

  • Technology Development

  • Technology Transfer

  • High personnel loyalty

  • Weaknesses

  • No dedicated customer interface

  • Unclear Project Priority

  • Confused communication

  • Difficult Schedule/cost controls

Adapted from Reference Text, pg. 136


Global contract management

Organization Options:Functional (Product/Services Centers)

  • Strengths

  • Product/Service development

  • Technology development

  • High personnel loyalty

  • Weaknesses

  • Unclear customer interface

  • Difficult technology transfer

  • Unclear project priorities

  • Confused communications

  • Difficult schedule/cost controls

Adapted from Reference Text, pg. 137


Global contract management

Organization Options:Pure Project

  • Strengths

  • Clear Accountability

  • Clear Customer interface

  • Strong Controls

  • Strong Communication

  • Dedicated resources

  • Weaknesses

  • Talent duplication

  • Less Technology awareness

  • Reduced functional development

  • Irregular workloads

  • Higher staffing levels

Adapted from Reference Text, pg. 138


Global contract management

Organization Options:Conventional Matrix

GeneralManager

ProjectMgr. A1

Engineering

Manufacturing

Marketing &Sales

Contracts &Legal

Finance

ProgramMgr. A

ProjectMgr. A2

ProjectMgr. A3

  • Strengths

  • Single point of contact

  • Clear Customer interface

  • Quick response

  • Reduced duplication

  • Technology transfer

  • Disbanded easily

  • Weaknesses

  • High management skill required

  • Competition of resources

  • Management cooperation required

  • Reduced employee recognition

Adapted from Reference Text, pg. 140


Global contract management

Organization Options:Collocated Matrix

GeneralManager

ProjectMgr. A1

Engineering

Manufacturing

Marketing &Sales

Contracts &Legal

Engineering

Manufacturing

Marketing &Sales

Contracts &Legal

  • Strengths

  • Single point accountability

  • Clear customer interface

  • Good control

  • Single location

  • High level of teamwork

  • Weaknesses

  • Reduced technology awareness

  • Reduced management support

  • Reduced functional sharing

  • Staffing irregularities

  • Higher costs (Relocations)

Collocated

Adapted from Reference Text, pg. 141


Global contract management

Organization Options: Summary

  • Numerous possible organizational structures/designs

  • No single-best solution for all situations

  • Organizational structures must vary depending upon the size, complexity, and phase of the project cycle

OrganizationalSpectrum

Functional (Skill Centers) Organization

Functional (Product/Services Centers) Organization

Conventional MatrixOrganization

CollocatedMatrixOrganization

(Hybrids) Integrated Project Team Organization

PureProjectOrganization


Global contract mgmt issues

Global Contract Mgmt Issues

  • Centricities: Language, culture, time-of-day

  • Span of Control

  • Command and Control

  • Priorities, processes, policies

  • Training

  • Institutional support: Logistics

  • Interpersonal support: Coaching, Counseling, Mentoring

  • Fundamental challenge:Corporate governance vs local empowerment/control


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