LECTURER: JOHN DOE

INTERNATIONAL CONTRACT
MANAGEMENT
TOPIC OUTLINE

The Four Phases of Contract Management 1

Phase I: Offer Preparation 2

Phase II: Negotiation 3

Phase III: Implementation (Part 1) 4

Phase III: Implementation (Part 2) 5

TOPIC OUTLINE

Phase IV: Analysis 6

UNIT 5

PHASE IV: ANALYSIS

STUDY GOALS

− Describe why an analysis should be made at the end

of every project.
− Identify who should carry out analyses.
− Understand what conclusions should be drawn from
the analysis.
EXPLAIN SIMPLY

1. For which projects should an analysis be made?

2. Who is typically involved in the making of analyses?
3. What take-aways do companies have from analyses?
WHAT IS PROJECT SUCCESS?

ꟷ = desired project outcome

− Different for every company and for
every company’s project.
− Much more than merely a company’s
financial result.

➔ Companies must thoroughly analyze

the project to find out what went well
and what didn’t.
HOW DO YOU MEASURE? PART I

ꟷ All key decisions taken during a project

must be reviewed.
ꟷ The time of the decision matters.
− Ex-post knowledge must be ignored.
− It is impossible to assess whether a decision
was correct in that moment when
considering knowledge acquired later on.
HOW DO YOU MEASURE? PART II

ꟷ Correct decisions may lead to

negative consequences.
ꟷ Again, the time of the decision
matters.
− The analysis may reveal that a decision
was correct when it was taken, even
though it turned out to be disastrous.
− negative result ≠ automatically a
negative decision
DECISION MATRIX

Decision: correct Decision: incorrect

Outcome: success

Outcome: failure
CONDUCTING A SUCCESSFUL ANALYSIS: DOCUMENTATION

ꟷ is a key requirement!
− Details are forgotten within weeks.
− A decision can only be analyzed with
sufficient information (documentation).
ꟷ Archiving is also key!
− instant text messaging (e.g., WhatsApp)
− private e-mail addresses
− …
CONDUCTING A SUCCESSFUL ANALYSIS: CULTURE

ꟷ culture of “honest appraisal”

− Mistakes will come to light (unavoidable
in large projects).
− Attitude of continuous learning, not
finger pointing.
− Approach should be “what can we
learn?” and not “who made the
mistake?”.
CONDUCTING A SUCCESSFUL ANALYSIS: SOFTWARE

ꟷ Can help significantly in conducting

the analysis.
− Allows to collect and categorize
information.
− Allows to create decision trees and other
methods of visualization.
ꟷ Is not a must!
LESSONS LEARNED PART I

− Analysis will reveal which decisions

were right and which were wrong.
− Take-aways should be shared with
entire team.
− Lessons depend on each particular
project.
LESSONS LEARNED PART II

− Take-aways must be used for

process optimization.
− Depending on the project, the
results may be implemented Project
team

within the project team only Department

or the entire organization

Company
globally.
All companies in same country

All companies worldwide

REVIEW STUDY GOALS

− Describe why an analysis should be made at the end

of every project.
− Identify who should carry out analyses.
− Understand what conclusions should be drawn from
the analysis.
SESSION 6

TRANSFER TASK
TRANSFER TASK
TASKS

Company A was very successful in the completion of its contract. It

exceeded the expected profits by 29% and the project owner,
Company B, praised Company A for its excellent work in a news
report issued recently. Company A believes that one reason for its
success is the lower costs for materials purchased.
What should Company A do differently when it analyzes the
project?
TRANSFER TASK
PRESENTATION OF THE RESULTS

Please present your

results.
The results will be
discussed in plenary.
LEARNING CONTROL QUESTIONS

1. Which of these principles applies to the final phase of

contract management?
a) The analysis phase of contract management is necessary only in
large firms.
b) The analysis phase of contract management is necessary only in
large projects.
c) The analysis should focus on large firms and large projects.
d) The analysis should focus on the time of the decision.
LEARNING CONTROL QUESTIONS

2. Which of these principles does not apply to the

analysis phase of contract management?
a) The analysis should focus on insignificant details, if they become
apparent in hindsight.
b) Even decisions that are right in themselves can lead to negative
consequences.
c) The analysis should focus on the most important events and
decisions.
d) The analysis should not focus on insignificant details.
LEARNING CONTROL QUESTIONS

3. Which of the following questions is irrelevant when

determining the success of a contract management
project?
a) Were the four phases of contract management labelled correctly?
b) Were the right decisions made in risk quantification and internal
approval?
c) Was the negotiation of what was planned successful?
d) Was the mutual win-win potential of the deal realized?
EVALUATION

How did you

like the course?
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