Contract Management

Six steps to delivering the prize

The benefits of good contract management – lower costs, improved supplier performance, reduced operational risk, improved ability to adapt and change, improved operational outcomes – are broadly understood and accepted, but many organisations simply don’t know where to start, or how to implement change effectively.

Lifecycle’s contract improvement methodology provides the tools and the framework to address every aspect of contract management, and deliver real benefits in a structured, efficient and optimised way. A proven approach to contract management that delivers 10%+ cost reductions, improves supplier performance and reduces contract-related risk.

1. Validate

Finding a single version of the truth

The first step is to pull together and validate all of your contracts, ensuring everyone is working from data that’s accurate and verified – and represents a single version of the truth. Our team are superb at consolidating all of the relevant information onto OPTIMiSe, our bespoke technology platform.

2. Analyse

Understanding where to focus the effort

Within OPTIMiSe, we have developed a unique diagnostic tool, the Lifecycle Index™, that delivers a clear understanding of how well contracts are managed today – both on a contract-by-contract basis, and across the organisation. The Lifecycle Index™ is a measure of the amount of effort and focus an organisation should spend on each contract, based on an algorithm of spend, risk and complexity. This is done to maximise investment and opportunity, and to stop value leaking away.

3. Benchmark

Identifying challenges and opportunities

Each contract is then assessed against the ten activities that contribute to contract management quality. Our intelligent wizard allows this assessment to be made easily for every contract.

The outputs from the Lifecycle Index process act as benchmarks to show where you are today across all your contract spend, and across the different parts of your organisation. We pull these together into a clear analysis, identifying (at both a contract and an organisational level) the issues that need to be addressed, and how these should be prioritised across the ten areas of assessment.

4. Plan

Detailed plans to address the challenges

We work with you to construct effective plans. The plans will clearly identify and address the requirements at an organisational level – resource, skills, training, process and systems. They will define both opportunities and required improvements a contract-by-contract basis. We’ll then support you in any or all aspects of implementing the actions required to address the needs identified through the Lifecycle Index and in the plans.

5. Implement

Working together to deliver the right outcomes

OPTIMiSe provides the heartbeat for delivering real long-term control, compliance and improved outcomes. The collaborative capability of OPTIMiSe, in particular, allows us to mix and match which contract management activities you outsource to us, and enables us to continually adapt our services to best meet your needs.

We can implement OPTIMiSe across your entire portfolio of contracts, codifying the actions for improving contracts within Contract Plans, which we can support you in building and managing.

6. Measure

Continuous improvement and measurement of success

We know results are what matter – it’s all about measurable and demonstrative improvements. It’s why we embed the use of the Lifecycle Index within the Contract Management approach, providing a clear and strategic means of continually demonstrating and measuring improved capability, improved performance and improved outcomes.

We can even provide an audit capability on a regular basis – to assess performance and make sure things don’t slip.

Contract Management in the NHS

Download the detailed findings of the research we conducted with HCSA.

Get your copy of the detailed findings

Contract Management in Universities

Download the detailed findings of the research we conducted with HEPA.

Get your copy of the detailed findings

“The service has been a clear success. They have delivered savings, compliance and control in a most challenging category. We had hoped for a more robust programme for renewing our maintenance contracts. What they have delivered is nothing short of the World Class Procurement standard.”

Rob Webb

Head of Procurement

“The services they deliver – and the excellent level of service they give – provide value way in excess of their fees.”

Adrian Goodchild

Finance Director

Ask a question.

If you’d like to know more about our approach to Contract Management, just ask.
Or call Jonathan Elsmore-Wickens, our Managing Director, on 07979 495986.

Questions? Schedule 15 minutes to chat with our Director of Contract Management