Contract Life Cycle Management Breakout Session # 3 John P. Mahoney, Chief Operations Officer The Leadership Companies, Inc. 42 Davis Road Acton, MA 01720 978-264-2900 Jmahoney@leadershipworldwide.com www.leadershipworldwide.com date April 7, 2003 time 2:00 – 3:00 p.m. NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management What gets us into trouble during the Contracting Process? Redundant activities No consistency in approach Each contract is an adventure Approvals unclear Business Partner – “That’s not what I asked for, or wanted” No planning Communication Skills NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management What gets us into trouble during the Contracting Process? (continued) Doing it all alone Managing conflict No post Contract Plan No sharing of contracts, data, existence (systems) Too impatient Deal psyche Cultural differences (beyond the border) NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management What can we do? Develop a consistent and predictable contract process Establish contract templates for all products/services Implement systems to share information across enterprise Training is essential - Contract Process - Communication Skills - Conflict Management/Working With Teams - Negotiations - Supplier Management Knowing ourselves and our partners (cultural impact/considerations) NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Implement New “Best Practices Contract Life Cycle Management Implement New “Best Practices Contracting Process Analyzing The Requirements Developing The Contract Plan Understanding The Supply Base Select The Appropriate Contract Selecting The Right Supplier Negotiating The Contract Managing The Contract NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Implement New “Best Practices” Contract Life Cycle Management Implement New “Best Practices” Negotiation Plans/Approvals Web-based, easy to use applications/systems Training - Alliances - Communications Skills - Conflict Management Cross-functional Teams (Sales, Procurement, Services) Continuous Improvement Program Qualification/Certification Programs NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management Skills Needed Active Listening……….. Anticipating……………. Cross-Cultural………….. Sensitivity Controlled Response..... Decisiveness…………… The ability to pick out information in non-written communications and effectively convey to the source that they have been heard. The ability to visualize future events and situations. Seeks opportunities to learn to communicate and interact effectively with people from other cultures, geographies and organizations; adapts to other cultures. Demonstrates calmness and objectivity when confronting or perceiving defense-provoking situations. Makes decisions in situations of uncertainty or risk. NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management Skills Needed (continued) Evaluating……………… Gaining Commitment….. Information Gathering….. Interpersonal Sensitivity… Maintaining Direction…… The ability to assess against a set of criteria. The ability to present an idea or plan so that others change their viewpoint and act accordingly. The ability to gather facts, ideas and opinions needed for analyzing situations, solving problems or making decisions. Open to the feelings, attitudes and motivations of others. The ability to monitor progress toward a goal. NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

Contract Life Cycle Management Skills Needed (continued) Organization and………… Process Sensitivity Planning…………………. Resourcing………………. Teamwork……………….. Seeks to understand how an organization or process works; is sensitive to the impact and implications of decisions and activities. The ability to establish a course of action and a sequence of steps to ensure that goals and objectives are achieved. The ability to identify, gather or enlist and effectively allocate the resources required to achieve a goal. The ability to promote cooperation, collaboration and partnerships between individuals or groups,both inside and outside the company. NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders

For help or assistance in implementation Contact: John P. Mahoney The Leadership Companies, Inc. 42 Davis Road Acton, MA 01720 Phone: 978-264-2900 Fax: 978-264-2912 Email: jmahoney@leadershipworldwide.com Web Site: www.leadershipworldwide.com NCMA 3rd Annual Commercial Contract Management Conference International Contract Management—Better Business by Crossing Borders