Contract Management Continuous Improvement Framework for the organization

Contents

Introduction...........................................................................................................................................3
Assessing Contract Terms......................................................................................................................3
Contract Management CI Framework...................................................................................................4
Procurement organization's suitability for the Framework.....................................................................5
Conclusion.............................................................................................................................................5
References.............................................................................................................................................7
Introduction

Contract management, which is vital to corporate operations, may have a significant

influence on the success of a business. Before submitting a proposal, exhaustive review

processes must be carried out in order to ensure that the contract receives fair consideration.

This process involves analyzing specifications, risks, regulatory requirements, and the

potential consequences for the company's reputation (NCMA, 2019a). Adopting a

standardized framework may facilitate the further improvement of contract management

practices. This approach focuses on defining exact goals, standardizing procedures,

implementing software solutions, and fostering a culture of continuous improvement. This

comprehensive approach to contract management might prove to be highly beneficial for the

procurement organization in this case.

Before signing contracts, businesses need to do a thorough analysis to make sure they can

meet their obligations and choose the best provider (Norby et al., 2004). This assignment

explains how to evaluate a contract and gives a business-appropriate structure for improving

contract management all the time. The framework's outside data are dealt with.

Assessing Contract Terms

Before submitting a proposal, the company must take the following steps to look at the

contract and give it a fair evaluation (Norby et al., 2004):

a. Read the specifications, deliverables, and scope of the contract to get a feel for the

project.

b. Find out if the organization in charge of buying things has the right tools, knowledge,

and experience to meet the requirements.

c. Check out the risks, costs, and payment terms of the deal.
 d. Analyze them to make sure that the procurement organization is meeting all legal and

regulatory requirements.

e. Think about how the transaction might affect the organization's reputation in the

community and its relationships with well-known people.

f. Risk evaluation is used to find potential problems and come up with solutions.

g. Talk to the important team members and people who make decisions.

Contract Management CI Framework

Information from outside sources suggests that the company use the following framework for

continuous improvement (NCMA, 2019b):

a. Briefly explain the goals and key performance indicators of the contract management

process (KPIs).

b. Make a group called the "contract management team." Its job will be to oversee and

manage contracts.

c. Install software for contract management to combine data and make things easier to

do.

d. Standardize contract forms and procedures to keep things consistent and effective.

e. Use KPIs and other metrics to evaluate and review the performance of the contract on

a regular basis.

f. Do both internal and external audits to find out what needs to be changed.

g. Make sure that the people who manage contracts keep learning and getting better.

h. Encourage a culture of continuous improvement and working together to solve

problems throughout the whole organization.

i. Set up feedback loops with customers, suppliers, and other important people in the

business to get their ideas and suggestions for how to improve it.
Procurement organization's suitability for the Framework.

Here are a few reasons why it might be helpful for procurement businesses to use the

framework for continuous improvement (NCMA, 2019b).

a. The framework puts improving business performance and reaching strategic goals at

the top of its list of priorities.

b. As a business grows, it may need to change its framework to meet new needs.

c. Standardized methods, templates, and software make it easier to manage contracts,

which saves time and reduces the number of mistakes.

d. Evaluations and analyses of contract performance may help improve performance.

e. Risk assessment and risk reduction techniques help procurement companies find and

deal with problems that could happen.

f. The contract management team stays up to date on industry changes and best

practices by getting ongoing training and development.

g. Technique based on coordination framework encourages team members, customers,

suppliers, and other stakeholders to work together to make sure that progress keeps

happening.

Conclusion

Effective contract management is crucial to a company's success, and contracts must be

analyzed thoroughly prior to submission. Adopting a framework for continuous improvement

might increase the efficiency of contract management operations while ensuring target

achievement, risk reduction, and effective performance. This methodical technique may be

used by the procurement department to improve consistency, effectiveness, and collaboration

both inside the organization and with external stakeholders (NCMA, 2019b). By following to

the supplied framework, businesses may succeed at contract management, which will

contribute to their growth and overall market success.

Businesses need to carefully read and analyze contracts so they can follow the terms and

make bids that are well-informed. The idea of continuous improvement is supported for

contract management because it helps achieve corporate goals, is efficient, measures

performance, and works well with others. Because of these things, it's great for the company.

With this framework, the company will be able to handle contracts and improve its business,

which will lead to growth.

References

NCMA. (2019a). Contract management body of knowledge (CMBOK).

https://books.google.com.pk/books?

id=TEGMEAAAQBAJ&pg=PT4&source=gbs_selected_pages&cad=2#v=onepage&

q&f=false

NCMA. (2019b). Contract Management Body of Knowledge®

Norby, M., Smith, E., & Smith, R. (2004). Guide to the contract management body of

knowledge (CMBOK). National Contract Management Association.