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HCMWorks Insights

Tips from the U.K. Government on Contract Management

Posted by Julia Fournier on 27 Nov 2015


Among a growing necessity to achieve greater savings and improve efficiency the Crown Commercial Service (CCS), an executive agency of the Cabinet Office of the U.K. Government, recently updated their common sense principles to contract management, according to the industry news site SupplyManagement.com. Procurement services are equally prevalent in the U.S. where about 40% of the workforce is made up of contingent workers, according to the U.S. Government Accountability Office.

While the 11 principles the organization laid out are in specific regards to cross government agencies and procurement solutions, many of the guidelines can be helpful and utilized in any sector of contract management as well. Most are more general than specific advice like keeping your payroll expenses to 20 to 30% of gross overall revenue. Here are some of the highlights in the report you can use in your business today.

Define Roles

The first couple principles have to do with establishing clear and concise roles and responsibilities before entering into a workforce management system of any kind. Seniority and proper workflow networks need to be defined so that there is little to no confusion as to things like who's responsible for what and who the supervisors should have oversight of.

Consider Risk and Reward

One of the more interesting suggestions is to differentiate the approach of your contract management depending on the level of risk and reward.

'Distinguish between tactical and strategic contracts, direct the most/strongest resource to contracts where the risks and rewards are highest,' the report reads. 'Consider a ‘self-managing’ approach with exception reporting for lower risk contracts.'

Flexibility and Adaptability

Another important principle is that of being flexible and adaptable. Unforeseen problems, errors, or just happenstance changes can occur at any time making it necessary to make changes. Accept this fact and instead of trying to fight against it, learn how to effectively minimize costs and make the appropriate alterations without damaging the strategic intent of the contract at hand.

One Focus

One of the guidelines that can certainly be applied to any business or company involved in contract management is their ninth point in the report. It states that you should:

'Accept that successful delivery of major projects is best achieved through a single fully integrated team where the supplier and the client work as a single team with one focus, delivery of the successful outcomes.'

Save Time and Money

Hiring and training full-time employees can be a burdensome and expensive process. On average companies spend around $3,500 just recruiting a new candidate. By following suggestions like those above in addition to a situation specific game plan, you can save time and money on contract management in your business.

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Tags: Workforce Management

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