Every arrangement articulates the rights and responsibilities of the parties so it is important to identify, understand and manage them in order to better ensure we ‘get what we contracted for’. Signing an arrangement is not the end of a process, but rather the start of an on-going relationship with the supplier. It needs to be managed in order to deliver the best outcome for the organisation.
M1 Implement Arrangement
Our goal is to lay the foundations of a successful arrangement during the period between the signing of the arrangement and the commencement of product/service delivery.
The key steps of the implementation of the arrangement are:
• Define the right level of management and resources according to the business criticality and complexity of the arrangement.
• Ensure smooth transition of services, especially if there’s a new supplier.
• Establish jointly with the supplier team systems and processes to ensure compliance and determine who is responsible for the key tasks and activities on the agency’s and supplier’s sides.
• Engage key stakeholders and communicate on the new arrangement.
Resources for M1:
• Contract Management Plan
• Exit Plan
• Transition Plan
• Communication Plan
M2 Manage Arrangement
Our goal is to deliver value for money and drive the best out of the supplier relationship.
The key steps of the management of the arrangement are:
• Maintain the right level of governance and resources according to the business criticality and complexity of the arrangement.
• Manage performance, drive continuous improvement and encourage innovation in coordination with the supplier and key stakeholders.
• Track and report benefits to show evidence of delivered value for money.
Resources for M2:
• Supplier Relationship Framework
• eQuote Supplier Endorsement Framework
• Supplier Performance Report Tool
• Supplier Meeting plan and Action Plan
• Benefits Realisation Plan
Our goal is to prepare the strategy for the next arrangement. Planning for renewal should be a constant during the manage stage; it is not an end of stage activity, rather a continuous assessment/improvement exercise that will provide the best possible outcome for the next arrangement.
The key steps of the renewal of an arrangement are:
• Commence dialogue with both the supplier and the internal stakeholders prior to contract expiry on the strengths and weaknesses of the contract.
• Commence demand and market analysis in anticipation of developing a procurement strategy.
You must design resources based on your business. If you need examples, please send email to me: