Welcome! Contract Management in the Service Profit Chain. Breakout Session # E10

Transcription

1

2 Breakout Session # E10 Contract Management in the Service Profit Chain Andrew Cooke MBA CPCM DynCorp International, LLC Andrew.Cooke@dyn-intl.com July :30 3:45 PM Welcome! 1

3 Executive Summary Contract Management Body of Knowledge Service Economy Present & Future Marketing & Shared Corporate Responsibilities Service Profit Chain (SPC) Fundamentals Contract Mgmt Professionals (CMPs) in the SPC Application 2

4 Contract Management Body Of Knowledge 3

5 The Brain of Service Contracting 1.0 Acquisition Planning 2.0 Acquisition Strategy Law & Regulation Contract Principles Codes of Conduct Planning, Methodology Proposal Prep Negotiation Intellectual Property Contract Structures, Methods, Financing Socio- Economic Programs Source Selection Protests 4

6 The Heart of Service Contracting 5

7 The Nerves of Service Contracting 4.0 Special Knowledge Areas 5.0 Business R&D, A&E, IT, Major systems Services Intl, State, Local, Supply Chain Performance based Acq, Property Mgmt, Marketing Ops Mgmt, IT Finance, Acct, Econ Ldrship 6

8 The Service Economy 7

9 Service Economy 2012 Sector % GDP Composition Agriculture 1.2% Industry 19.1% Services 79.7% (US, 2012 est.) Labor Force by Occupation farming, forestry, and fishing manufacturing, extraction, transportation, and crafts managerial, professional, and technical 0.7% 20.3% 37.3% sales and office 24.2% other services 17.6% 8

10 Service Economy The employment shift in the U.S. economy away from goodsproducing in favor of serviceproviding industries is expected to continue. Service-providing industries are anticipated to generate nearly 18 million new wage and salary jobs. - BLS Occupational Outlook Handbook

11 Revenue by Service Economy Census Bureau Quarterly Services Survey 10

12 Federal Contract Awards FY12 11

13 Successful Service Contract Elements 1. Responsible, intelligent, trustworthy and responsive parties with shared/complimentary values 2. A well written agreement based on shared objectives between the parties to include (but not limited to): a. A Statement of Work (SOW) based on the S.M.A.R.T. goals, b. A common-sense Service Level Agreement (SLA) with key performance indicators (KPIs), and c. A change management process 3. Compatible systems & processes (CMS, Disputes, LDs, and Change Management) to protect future business relationship 12

14 Marketing & Shared Corporate Responsibilities 13

15 Contracts, Marketing, The P s, The R s Product Promotion Place Pricing 14

16 Three P s of Contract Management People Internal & External customer relationship Strategic Advisors Product Communication Compliance Delivery Performance Paperwork Systems Records Commitments Contracts 15

17 Shared Corporate Responsibilities 1. Compliance with Contract, Law, Regulation, etc. Organizing good and productive work 2. Customer Satisfaction & Retention Meeting society s needs through creation/dev of goods & services 3. Make Money Be just in the allocation of resources (stakeholders, community, etc.) 16

18 Service Profit Chain 17

19 Service Profit 50K foot level Leadership Employee Satisfaction Employee Loyalty Productivity Profitable Growth Customer Loyalty Customer Satisfaction Value 18

20 SPC Relationships (1 of 3) INTERNAL TO COMPANY Leadership Employee Satisfaction Employee Loyalty Productivity Profitable Growth Customer Loyalty Customer Satisfaction Value EXTERNAL TO COMPANY 19

21 SPC Relationships (2 of 3) Leadership Employee Satisfaction Employee Loyalty Productivity Profitable Growth Customer Loyalty Customer Satisfaction Value 20

22 SPC Relationships (3 of 3) Leadership Employee Satisfaction Employee Loyalty Productivity Profitable Growth Customer Loyalty Customer Satisfaction Value 21

23 Contract Management In the Service Profit Chain 22

24 CM Professionals in the SPC (Internal) 2.4 Negotiation 3.7 Disputes 5.8 Leadership Leadership 1.1 Laws/Regulations 1.3 Standards of Conduct 1.4 Socioeconomic 2.0 Acquisition Strategy Employee Loyalty & Satisfaction 1.5 Contract Structures 1.6 Contract Methods 1.7 Contract Financing 2.1 Acq Planning 2.2 Acq Methodology 2.3 Proposal Prep 2.4 Negotiation 2.5 Source Selection Productivity 23

25 CM Professionals in the SPC (External) 3.0 Post Award (Admin, Performance, Subcontracts, Changes, Property, Transportation) 5.2 Marketing, 5.1 Management 5.3 Operations Management 2.6 Protests 5.1 Management 5.2 Marketing 5.6 Economics Customer Value & Satisfaction Profitable Growth (Think 3 R s) 24

26 Application 25

27 Application: Profitable Growth Customer Loyalty Customer Satisfaction Productivity Employee Loyalty Employee Satisfaction Leadership Shared Values (Code of Ethics and Business Conduct, Social Contract, DI Star) 26

28 Application (cont.) Structure & Organization Who in your Contracts Org provides each of the elements of the SPC leading to Profitable Growth? Do you have any SPC items missing in your org? On the CM3P s, where is your organization s focus? Is that right for your company at this time? What s the rest of your specialty in the service industry doing? Is the composition of the CM3P s right? Is that right for your company at this time? What is the rest of your industry doing 27

29 Sources Bureau of Labor Statistics, U.S. Department of Labor. (2012). Occupational Outlook Handbook, Edition, Projections Overview. Retrieved from CIA World Factbook. (2013). ISSN Retrieved from Contract Management Body of Knowledge (CMBOK) 3 rd Ed. (2011).National Contract Management Association. ISBN-13: Cummins, Tim. (2004). Contracting as a Strategic Competence. IACCM. Doran, G. T. (1981). There's a S.M.A.R.T. way to write management's goals and objectives. Management Review, Volume 70, Issue 11(AMA FORUM), pp Heskett, James L, & Sasser, W. Earl, & Schlesinger Leonard A. (1997). The Service Profit Chain: How Leading Companies Link Profit and Growth to Loyalty, Satisfaction and Value. New York, NY: The Free Press. U.S. Dept of Commerce. Census Bureau. Quarterly Services Survey. Washington, DC: Author. Retrieved from USASpending.gov (Mar 2013). Custom search of select NAICS codes. Washington, DC: Author. Retrieved from 28

30 Questions? Thank you! Contact Information: Andrew S. Cooke MBA CPCM