With the UK election and new government finally upon us, the government now has a new mandate. The mandate is normally based on election promises, which are just that – promises! We have already seen that the “winners” in a hung parliament cannot their election promises.
None of us have a crystal ball! In a changing world, is it even possible or desirable to keep to our promises?
Contracts are also just promises; one party promises they will do something in return for a consideration, which is usually money. A company buying services, goods or works hopes all will be done according to the contract, but hope is not enough and contracts need to be managed. All those details that were negotiated need to be brought to life. The obligations of each party need to be adhered to and not just ignored. As the contract plays out, change needs to be managed and not left to take its own course or a course that suits only one side. With many businesses spending more of their income on suppliers than on employees, why would you only think of managing your employees and not bother to manage suppliers? Promises need to be kept and to ensure these contracts need to be managed.
So, just as any newly elected Prime Minister will have to appoint a new cabinet to manage each part of their manifesto promise, a contract manager will have to allocate people to all the tasks of managing the contract.
Have a look at the diagram below and see if you can put a name in your organisation to each responsibility for each of your contracts. If you can, there’s a very good chance your contracts will go well and deliver the promised benefit.