1. 3PM – 5 STAGE PROCESS
5 Basic Elements must be managed – whether you are a buyer or a seller
Makes THE difference between success and failure
Implications of failure are potentially expensive

2. 3PM – 5 STAGE PROCESS Define Requirements Due Diligence &
Pre-contract Process
Define Requirements – Flexible
Preliminary Requirements Definition
Preliminary Business Case
Materiality Assessment
Due Diligence & Contract Drafting – Flexible
Market Analysis
Due Diligence Checks
Commence Exit Planning
Final Business Case
Contract Sign-Off – Fixed
Finalise Contract Documents
Contract Sign-Off – Internal Approvals
Sign (‘execute’) written contract
Third Party Management - Flexible
Complete Exit Plans
Relationship Management
Regular Management Information
Maintain Risk Log
Operational Due Diligence
Ending the Contract – Fixed
Contract Exit Sign-Off
Invoke Exit Plans
Define Requirements
Due Diligence &
Contract Drafting
Contract Sign-off
Contract Management Process
Third Party
Management
Ending the contract

3. 3PM – 5 STAGE PROCESS Define Requirements Due Diligence &
Pre-contract Process
Define Requirements
Understanding the marketplace
Assess “account attractiveness”
Relationship type – close or arms length
Evaluating key success factors
Due Diligence & Contract Drafting – Flexible
Proactive evaluation of market and assessment of risks
Proactive liaison with key internal stakeholders
Thorough & systematic evaluation of financials, commercial strategy, confront strategy, security, risks & exit strategy
Contract Sign-Off – Fixed
Contract in place prior to commencement of work
All key stakeholders are involved in sign-off process
Adequate audit trail
Third Party Management – Flexible
Tracking/Monitoring of commercial “benefits”
Appropriate/regular/timely Management information
Relationship Management
Continuous improvement
Operational due diligence
Ending the Contract – Fixed
Ensure liabilities on both sides are discharged
Ensure financials /payments are complete
Contract exit approvals – from key stakeholders
Audit trail/records maintained
Define Requirements
Due Diligence &
Contract Drafting
Contract Sign-off
Contract Management Process
Third Party
Management
Ending the contract

4. 3PM – 5 STAGE PROCESS 3PM “lifecycle” approach
3PM process documentation follows the lifecycle approach
All third party relationships run through a lifecycle
Let’s understand precisely where we are in any lifecycle
Let’s adopt the best practice behaviours – let’s be professional