Overview:
Organisations across Australia are increasingly moving towards external service providers for the provision of a wide range of services. As a result, contract management is becoming one of the core activities of overall management. With 97% of Australian organisations outsourcing at least some aspect of their IT services and nearly 30% of the IT budget on average, contract planning and management has become one of the core competencies of any IT responsibility. Furthermore, in todays increasingly cost conscious environment, effecting thorough contracts and applying diligent governance is even more critical. No longer is it only contract specialists involved in the contract process, professionals of all disciplines have a vital role to play in the development of successful contracts and their ongoing management.
The nature of contracting has changed, current contracts:
- have a larger scope of services provided
- have a greater impact on users and customers
- have more responsibility assumed by the supplier
- often involve the transfer of assets, intellectual property, and staff
- may employ a “partnering” style of relationship
- can involve complex relationships between prime contractors and sub contractors and between other third-party suppliers.
The changing nature of contracting means that the managing responsibility transcends the traditional, more administrative role. To manage today’s contracts, a direct role must be played at a strategic and operational level to ensure value for money is achieved and risks are minimised.
Learning Method:
This hands-on training course will deliver the key framework for planning and managing contracts from design through to disengagement. The course consists of two intensive days of pragmatic methods comprising numerous interactive exercises, case studies and a role playing session, designed to assist you determine the best and most effective contracting techniques for your organisation. You will be split into small groups to ensure you have the maximum opportunity to have your individual questions and needs addressed.
Who will benefit from this course?
This course is designed for:
- both the novice and the experienced contract manager
- both the technical and non-technical professionals
- non-technical people who wish to gain an understanding of IT contracts
In particular, we highly recommend this course for:
- contract managers and administrators
- Project managers and procurement staff involved in contract development and specifications
- professionals involved with contract operations and management
- internal auditors charged with a contract oversight or review role
Pre-requisites:
There are no pre-requisites for this course but some exposure to contract writing and/or administration would be helpful.
What can you expect to gain from this course?
You will discover how to build and comprehensive and solid framework for establishing and managing contracts.
By attending this training you will benefit from discussing the following issues:
- Taking a strategic approach to planning and developing contracts
- Knowing the role of the contract in the total governance picture
- Identifying the key terms and conditions
- Writing contract specifications, price schedule and service level agreement
- Planing the entire contract lifecycle from design through to disengagement
- Targeting the skills needed to successful manage the contract
- Establishing the contract governance framework – clear structure, accountabilities, reviews, meetings, and management procedures
- Ensuring solid contract operations
- Implementing effective issue, variation and dispute management
- Designing effective contract relationship management and communication
- Learning negotiation strategies, tips and traps
Course Content:
Module 1:Introduction and Overview of course
- Course design layout: walkthrough what you will learn
- Meeting individual objectives: discuss your goals
Module 2:Popular Use of External Service Provider
- What is and isn’t being outsourced
- Why and why not
Module 3:The Role of Contracts in the Commercial Environment
- Defining what is a contract
- The contract in the total governance picture: it isn’t the only tool available for effective contract management
- Key objectives of contracts: to be successful
Module 4:Contract Fundamentals
- The ten essentials of successful contracts
- Legal vs extralegal: contracts aren’t just about law
- Legal vs other power bases: use them all
- Behaviour overriding contract provisions: your contract could be ineffective
- Role of standard form contracts
Module 5:Drafting the Contract
- Explore key contract planning issues: who prepare it, length, extensions, etc
- Investigate the issues covered in contracts without legal jargon: a practical perspective
- Case study: Assess a contract
Module 6:Key Schedule - Price
- Explore the pros/cons of various pricing models: avoid the traps of the inexperienced
- Know how price models impact on managing the contract
- Making the price model decision
Module 7:Key Schedule - SLA
- Basics of SLA’s: articulating your expectations
- Key SLA contents: responsibility matrix, definitions, KPI’s & incentives, reporting, and governance
- Case study: Assess a SLA
Module 8:Planning the Contracting Lifecycle
- Architect Phase: preparing the strategies and designing the contract
- Engagement Phase: selecting the service provider and transitioning in the deal
- Governance Phase: managing the contract and planning the next generation
- Evaluations, reviews and audits and reviews: frequent assessment is critical
Module 9:Lifecycle Skills
- The breadth of skills required for the contract lifecycle management
- Targeting the skills your contract needs
Module 10:Writing Contract Specifications
- Elements of a good tender
- Structuring the specification
- Evaluation tips and techniques
- Designing and evaluating a comply/not comply format to a contract specification
Module 11:Completing the Contract
- Before awarding the contract: farming representations and expectations
- Before negotiations: conducting due diligence
- During transition: last chance to fix and finish
Module 12:Contract Conclusion
- Ways contracts end: “natural” and “unnatural”
- Disengagement, handover and post termination
Module 13:Next Generation Planning
- Planning the subsequent contract options and issues
- Critical assessments to consider well before the contract ends
Module 14:Planning the Contract Management Function
- Activities required for successful contract management
- Setting the roles of each party: getting the right inter-party relationships mapped out
- Dynamic team roles: is your team well represented?
- Managing multiple service providers vs. a sole supplier
Module 15:Contract Operations
- Reporting: ensuring you get the information you need
- Meetings: structuring the frequent interaction needed at many levels
- Evaluations, reviews and audits: frequent assessments are critical
- Benchmarking: comparing your deal to others
Module 16:Problem Management & Resolution
- Common IT contract problems, improvement areas, and first generation findings
- Issue, variation and dispute management
Module 17:Core Skill #1: Relationship Management
- Forms of relationships from power based to partnering - this will drive your deal
- Dissecting partnering: what it really means to both parties
- Planning a successful relationship: it doesn’t just happen, it happens by design
Module 18:Core Skill #2: Communication
- Set your communication goals: informing vs. gaining commitment
- Target who you need to communication with and why: one technique won’t serve for all
- Profile your targets: determine the right approach
- Ensure your communication will be effective: identify your targets’ stage of commitment
- Kick off a communication plan for your contract
Module 19:Core Skill #3: Negotiation
- Determine how often you may renegotiate
- Be able to identify conflict resolution styles and how they impact reaching agreement
- Role playing session: put it in practice
- Negotiation tactics, tips and strategies: including roles, BATNA’s, avoiding pressure tactics, etc
- Prepare a negotiation plan: plan ahead and win
Module 20:Applying Best Practices to your Organisation
- Steps for best practice contract development and management: tips from years of hindsight
- Attributes of a best practice contract: know what characteristics you want to ensure your deal has