Interact 2015 Huron Vendor Pres - ContractMgtROI

Contract Management that drives ROI
Session #15186
June 9, 2015
Interact 2015
Las Vegas, Nevada
Healthcare Industry User Group - Interact
June 2015

Speaker Information
Jens Brown
 Director
 Huron Consulting Group
 jensbrown@huronconsultinggroup.com
Jason Moebius
 Managing Director
 Huron Consulting Group
 jmoebius@huronconsultinggroup.com
June 2015

Huron & Oracle
 Huron is an Oracle Platinum partner and works
closely with all levels of Oracle to provide guidance
on how to optimize applications for clients.
 We are particularly proud of the benefits this
relationship provides to our clients and our role as
a test partner for the latest PeopleSoft release.
June 2015

Agenda/Contents
 Importance of Contract Management
 Top Factors Driving Enterprises to Focus Resources on
Contract Management
 Steps to Success
 Establishing contract management goals
 Business process reengineering
 Build the right organization model
 Establishing formal contract management practices
 Develop standardized and automated contract creation
methods
 Defining and quantifying ROI
June 2015

Importance of Contract Management
 These are not your parent’s contracts anymore –
contract management is continually evolving
 Taking a strategic view of contract management
promotes collaboration between organizations and
partners
 Finalizing the contract is just the first step – the value
added steps usually happen after the agreement is
finalized
 Technology, is an enabler and only one piece of the
puzzle
June 2015

Industry perspectives
 Current and Planned Actions around Contract Management

Industry perspectives
 Areas Within Contract Management Enterprises Intend to
Automate

Top Factors Driving Contract Management
June 2015
Author
Execute
A number of factors
are impacting your
organization’s ability
to effectively
manage contracts…

June 2015
Author
Execute
 Challenging to
establish and
leverage one set of
templates
 Previous language,
and preferred and fall
back positions are
often one-offs
 A common repository
is rare

June 2015
Author
Execute
 Incomplete record of
activities and history
 Inefficiencies with
department level
contracts
 Lack of visibility to
existing contracts

June 2015
Author
Execute
 Gaps in standard and
risk based approval
 Routing, approval,
and exception based
review opportunities
are lacking
 All or nothing
approach

June 2015
Author
Execute
 Execution of
agreements is
sufficient, however
true enablement of
the contract is
challenged
 Often there are gaps
with the proper
‘customers’ in your
organization having
access

June 2015
Author
Execute
 Distributed
management of
contracts by
departments, whose
core competence is
not in sourcing /
contracting.
 Gaps in enabling
technologies to use
and monitor
duration and
performance

June 2015
Author
Execute
 Visibility of spend on
contracts is
inconsistent
 Data gaps make of a
dearth of data for
future negotiation
efforts

Contract Management Goals
• Repository of Standardized Contract Templates
• Monitored Contract Deviations during authoring
and execution
• Electronic Drafting, Workflow, Authorization
• Data Retention and Integration
• Searchable Contract Repository
• Milestone Notification

Steps to Success
 Ok, so what are those steps to success?
June 2015

For starters…
Contract Management is a
JOURNEY not a GO-LIVE
June 2015

Step #1
Establish Contract Management Goals
 Break your goals into short and long term
 Map your contract management process to identify
opportunities for improvement
 Be creative – find opportunities to incent innovation
from your business partners
 Be transformative
June 2015

Step #2
June 2015
Business Process Reengineering
 Make the investment to consolidate contract data
repositories
 Define the meta-data you want to capture within your
contracts and vet the data requirements with key
stakeholders
 Identify low risk contracts/processes for automation to
allow resources to focus on high risk contracts

Step #3
Build the Right Organization Model
 Create new performance goals and objectives of
contract administration staff
 Integrate contract management goals
 Review and analyze the stakeholders in your
organization
 Establish and curate internal partners
 Calibrate and shift positions to best leverage category,
compliance and transaction skills
June 2015

Step #4
Establish Formal Contract Management Practices
 Identify the criteria that will be used to evaluate
performance of the contracted parties
 Clearly articulate how proposed changes to the
contract will be evaluated
 Ensure that contracts are actionable by the right
audience / customer, via:
 Items, catalogs, punchout content, marketplaces
 Ordering instructions
 Buying and Paying Guides
 Ongoing Compliance monitoring
June 2015

Step #5
Develop Standardized and Automated Contract
Creation Methods
 Configure your systems to capture the meta-data
identified as critical to your contracting process
 Standardize contract language across your
organization
 Consider which of your processes will benefit from
an integrated contract management system
June 2015

Questions?
June 2015

Interact 2015 Huron Vendor Pres - ContractMgtROI

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