In two recent blogs President of The International Association for Contract & Commercial Management (IACCM) Tim Cummins has discussed the membership organisation’s many insights into the challenges of contract management, against the background of what he fears is the wider societal erosion of trust in business.
Tim claims that the costs of poor contracting is a big issue, as IACCM research shows that, on average, businesses lose an average of 9.2% of value down to poor contract management approaches.
He also discusses the fact that there is little to no technology support for the management of those contracts, so the flows of data within the organisation important to the performance of a contract don’t exist. As a result, businesses are caught in a catch 22, he notes – if you don’t have a process to monitor the cost for lost revenue opportunity, then of course, you’ve not got the method of collecting the data to actually give you the evidence. In his companion piece, the IACCM leader then details the practical steps he sees as necessary to change the whole contract management issue for the better at last.