Successful implementation of contract management is measured by the criteria of “productivity”, “efficiency” and “proper implementation”.
What Does Contract Management Include?
The standard definition of a contract management system includes leadership and control, but there is another very important function that sometimes goes unnoticed. This is an increase in the energy level of the organization. Activation and motivation are the tasks of the board. He or she is responsible for keeping employees motivated. But then the question arises: who is responsible for motivating the board team? This is the task of the Board of Directors. Too much control and insufficient authority of the board reduces his or her motivation, and this subsequently affects the motivation of the company’s employees.
The contract management process includes:
- contract request or initiation;
- authoring, negotiation/redlining, and approval stages;
- execution and signature;
- obligation monitoring, renewals, amendments, and expiration.
Development of tender documentation with the contract management is organized by the tender committee in accordance with the requirements of the customer or the organizer of the tender. Tender documentation must contain invitations to tender, information on the nature and necessary technical and qualitative characteristics of the object or subject of tendering, terms of performance or supply of goods, services or works, qualification requirements for tenderers, tendering requirements, and other information.
From the point of view of the theory of contract management, the project, as an object of control, is guilty of being controlled and monitored, so that one can see the main characteristics, for which one can constantly control the progress of the project (controllability). Productive performance of the contract management process in the use of models, methods, procedures, and tools to minimize irrationality, losses, and inconsistencies in projects. In modern management practices, productivity, as the ratio of the result obtained and the amount of resources expended, is used to measure production (physical productivity), information processes (intellectual productivity).
Contract Management Help for Board of Directors
Systematic, which involves considering the project of innovations from contract management. This means, on the one hand, that the project management process is one with its laws of formation and development, and, on the other hand, the possibility of dividing the project into subsystems and studying their relationship, as each affects all other subsystems, and for the whole project as a whole. Thus, it is possible to open and design a rational connection of subsystems, their relationships, and subordination, to give quantitative and qualitative assessments of the project and its individual parts.
The main requirements for candidates for the position of contract management are:
- Knowledge of project management methods and technologies.
- Special knowledge in the subject area of the project.
- People management skills and experience.
- Leadership and organizational qualities.
- Effective communications.
But in practice, there are situations when the board of directors ceases to fulfill its mission. The reasons for this lie, as a rule, either in the fact that the board of directors ceases to defend the interests of shareholders and defends their personal interests or in the fact that the board of directors begins to represent the interests of one shareholder or group of shareholders (most often the majority). In such a situation, the actions and decisions of the board of directors are no longer aimed at achieving benefits for the company as a legal entity, and in some cases cause harm to it.