1. THE JOURNEY
TO WORLD CLASS
David Gee
Head of Commercial & Contract Operations
Global Enterprise and Services, Telstra

2. What is World Class
Contract & Commercial
Management?

3. The Journey to World Class | 25 July 2016
Page 3
Imagine…
A place where
there is an ease of
contracting for all
parties
Where risk
management is
largely automated
Where staff can
focus on strategy
and customer
service

4. The Journey to World Class | 25 July 2016
Page 4
Characteristics of world class performance
As per the IACCM Capability Maturity Model
9 Criteria of engagement*
The model uses the following to assess capability:
• Customer Vendor Experience – Plan and track
business relationships
• People Development – Closing skills gaps and
development of team members as trusted advisors.
• Strategy – Policy formation for robust, systemized
mapping of strategic and operational goals.
• Leadership – Executive exposure to the concept of
commitment management
• Risk Management – implementation of risk
management and its impact on business practices.
• Information Systems / Knowledge Management –
use of automation to capture and manage contract
and relationship performance.
• Financial – Link T&Cs to price and cost analysis,
as part of strategic review.
• Solution Requirements Management –
Management & segmentation of product/service
categories.
• Execution & Delivery – Strong focused on results
metrics only.
*Source: IACCM

5. Telstra’s Journey
to World Class

6. • Reduced profitability and revenue leakage
• Communication and relationship breakdown with stakeholders
• Reduced likelihood to generate, recognise and seize opportunity
• Decreased visibility of obligations and increased exposure to
contract related penalties
The Journey to World Class | 25 July 2016
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18 months ago – critical pain points
Aims
• Proactive engagement with the business and our customers
• Continuous improvement
• Technology enabled
• Enhanced reporting capacity
• Single source of truth for contractual data
• Better serve our customers
• Introduction of a Contract and Lifestyle
Management System
• Development of clear and consistent processes
• Uplift capability in identified focus areas
Improvement plan
Less defined processes and technology gaps, which can lead to:
• Varied management practices and limited knowledge
sharing, leading to duplication of work
• Confined involvement in sections of the value chain
• Limited reporting and search capacity

7. How we got there…

8. The Journey to World Class | 25 July 2016
Page 8
What was required?
It was clear that a number of issues
faced would be alleviated with the
introduction of a Contract and Lifecycle
Management System (CaLMS).
So we went in search of vendors…

9. The Journey to World Class | 25 July 2016
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CaLMS early stages
Defining requirements and selecting a vendor
RFI
•Preferred vendors were identified following market review
•They were invited to respond to a request for information, to present and were
assessed. The field was narrowed to fewer vendors for the next RFP stage.
RFP
•Responses were provided to requests for proposals.
•The remaining vendors were invited to present and were
assessed.
Negotiation •Entered into negotiations to finalise vendor.
Vendor
Awarded
•Contract was signed and design and
implementation commenced.
Some key considerations:
Functionality and reporting capability
Data security
Ease of use
Reputation
Strategic fit
System integration

10. The Journey to World Class | 25 July 2016
Page 10
Chosen Vendor – Apttus…

11. The Journey to World Class | 25 July 2016
Page 11
This was the very beginning of the journey...

12. What will CaLMS deliver
Page 12
Origination,
authoring
and
approvals
Obligations
management
Item
search
Issues &
Risk
management
Variation
management
Reporting
Renewals
Contract
closure
Purpose:
To effectively
manage contracts
from conception
to fulfilment.
The Journey to World Class | 25 July 2016

13. The Journey to World Class | 25 July 2016
Page 13
CaLMS benefits
Reduce Risk
• Drive standard Contract terms
• Track use of non standard
terms ( + require additional
approvals)
• Single source of Contract truth,
confidence that we are dealing
with current contract
• Error Minimisation by
automating manual processes
• Reporting for management of
risk and issues
• Provide audit traceability
Benefits to Telstra
• Single source of contract truth provides better
version control and simplifies data sharing
• Automated processes require less time and
the incidence of error is minimised
• Superior reporting/ tracking and alert capacity
for management of risk and issues
• Reduced cycle times from preparation to
active contract
• Contract standardisation, leading to clearer
outcomes
• Easier to do business and increased customer
satisfaction
Benefits to Telstra customers
• Easier and faster to contract with us
• Reduced incidence of error
• Faster, clearer escalation and other processes
in the event of issues
• Resources become available to focus more
on better serving Telstra customers
• Superior reporting/ tracking/ alerts to
support timely renewals and other key
activities
• Contract standardisation, leading to clearer
outcomes
• Easier to do business and increased customer
satisfaction

14. The way forward…

15. The Journey to World Class | 25 July 2016
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One puzzle piece…
CRM
CaLMS CPQ

16. 1. Clearly define requirements.
2. Quality data inputs and controls.
3. People and process change
management.
4. Open and frequent dialogue with
internal stakeholders.
5. Customer management.
The Journey to World Class | 25 July 2016
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Top 5 recommendations

17. THANK YOU
ANY QUESTIONS?