| | September 20218CIOReviewIN MY OPINIONIn recent years, the contract management landscape has become increasingly complex. Regulatory considerations are in flux, digital transformations have accelerated the pace of business, and contracts have become more involved and intricate. With a widespread global pandemic, the role of strong partnerships has been crucial in enabling a work from anywhere environment while maintaining consistency and reliability in service delivery. With the various dynamics at play, it is crucial to ensure that a company's contract management strategy evolves to keep pace with these changes while also maintaining an acute focus on its core values when creating and sustaining its partnerships.From Lower Prices to Stronger OutcomesIn managing and measuring the value of vendor partnerships, many resort to the price point as the primary default consideration. But in fact, most companies are paying too high of a price if their Key Performance Indicators (KPIs) are strictly around cost as opposed to quality and alignment of outcomes. The key is to maintain a competitive balance by bringing in the best talent at the lowest cost across vendors. And with changes in the landscape, it is more effective to consider outcome-based performance measures rather than traditional operational metrics.A Digital-first EcosystemTechnology transformations have been game changers around working with partners in an integrated technology ecosystem. We are at an inflection point as companies become more digital first, making it critical to maintain even stronger partner and vendor relationships. With the acceleration of technology driving enhanced collaboration, this has also signaled a shift in how we work with our partners through an integrated ecosystem. Though companies are still accountable and manage vendor and contractor relationships, this is now done through contracts where there is less control on the end-to-end process lifecycle and more dependency on suppliers as intermediaries. In a digital-first landscape, there is also a tendency for vendors and partners to gravitate towards doing business with companies that are equally focused on a digital-first agenda. Therefore, building A HOLISTIC APPROACH TO CONTRACT MANAGEMENTBy Victor Tung, Executive Vice President - U.S Chief Technology & Operations Officer & Chief Operating Officer, BMO Financial Group Victor Tung
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