Deploying Contract Management standard across top UK Public Transport Group
Situation & challenges
With a centralised Group Procurement function, as well as operating company-specific procurement representatives, our client had robust procurement practices in place. However, a need was identified to assess, standardise and improve contract management practices across the different Train and Bus operating companies.
Ayming was engaged by the Chief Procurement Officer to support in a group-wide contract management assessment leading to a gap analysis and action roadmap, as well as to develop a minimum contract management standard and process to be rolled out across the Group. Moreover, Ayming were to deliver training to key members of the organisation.
What we did
To deliver this project, Ayming mobilised 2 experienced consultants to design an approach consisting of 2 phases. Phase 1 focused on understanding and mapping the status quo leading to a gap analysis against best practice. Phase 2 focused on setting the target, defining a contract management standard, as well as developing & delivering training for stakeholders across the group.
Phase 1 - Understanding the status-quo
To map and diagnose contract management practices across the group, Ayming used our proprietary framework focused on assessing the 5 key stages of contract management, as well as the overall strategy and tools & templates available:
- Creation and authoring
- Negotiation and approval
- Contract execution
- Contract administration
- Analysis & renewal
Interviews and workshops were held with 40 representative stakeholders across our client's Group and all relevant bus and train operating companies throughout the UK. We ensured that not only current practices were captured but strategic objectives as well. In parallel, Ayming gathered and analysed key data and documentation (spend data, policies, key contracts, etc.) to draw additional insight and inform our analysis.
As part of phase 1, two key deliverables were produced and signed-off by senior management (Group CPO):
- Gap analysis vs. best practice
- Suggested group-wide Contract Management standard and process
Phase 2 – Sign-off and deployment of the Contract Management standard
During phase 2, Ayming proceeded to validate and sign-off the contract management standard by working in close collaboration with our client's procurement team and key contract managers across the Group. Once the standard was defined, Ayming produced all relevant documentation (i.e. processes, tools & templates), as well as designed and delivered a training programme to roll-out the CM standard across the group.
Key deliverables of phase 2:
- Signed-off Contract Management standard and relevant tools & templates
- Contract Management training material
- Delivered classroom training sessions for 35+ stakeholders across the group
And How We Helped...
Having completed the engagement, our client had a clear contract management vision and common understanding across the group.
About Our Client
Our client is one of the UK’s leading public transport providers enabling more than a billion journeys each year through their bus and rail services. It is a FTSE 250 Index group listed on the London Stock Exchange with revenues of £3.21bn in 2015.