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Most Admired Global Companies in Contract Management Announced
IACCM survey identifies contract leaders that excel in ethics and risk management; quality of contract management has become a key indicator of company performance and integrity
Ridgefield, CT — October 3, 2008 — Contracts are one of the primary vehicles through which opportunities are realized and risks are negotiated and managed. In a complex, networked world, the quality of contract management has become a key indicator of a company's performance and integrity. In the words of one oil industry executive, "World-class companies must have world-class contracting performance."
The ability to define and manage successful trading relationships represents a "core competence" in today's networked world. Corporate reputation and performance depend on a complex web of relationships that span multiple jurisdictions and regulatory environments. Many believe that it was this complexity that first enabled — and then defeated — the leaders in the financial services industry.
While politicians argue over the need for new regulations and controls on bonuses and pay, top global corporations continue to steer their own path in ensuring good governance. They understand the need to balance risk and opportunity, to ensure the trust of key stakeholders. Making and managing responsible commitments is fundamental to that issue of trust.
Most Admired Identified
In the first-ever study of its kind, the International Association for Contract & Commercial Management (IACCM) asked almost 10,000 contracts, procurement and legal professionals worldwide to nominate the companies they most admire for the quality of their contract management performance. These professionals identified more than 400 organizations, and this week the results of that study were announced, highlighting the top 25 most admired contract management performers in the world.
Occupying three of the top four positions are groups from the outsourcing industry. This might be expected, given the long-term nature of their contracts and the criticality of contract management to profitability, customer value and relationship retention. Indeed, it is notable that IBM heads the list, and that contract management was an area for global reengineering focus more than 10 years ago, when Lou Gerstner stated his belief that "contracting is directly linked to brand image."
Today's contract management techniques stretch far beyond the largely administrative tasks of the past. Leaders in this area have understood its critical role in both relationship and corporate governance. The contracting process provides a framework for regulatory compliance, reputational risk management and effective change control, as well as offering a source for added value and innovation.
The ability to define and manage successful trading relationships represents a "core competence" in today's networked world. Corporate reputation and performance depend on a complex web of relationships that span multiple jurisdictions and regulatory environments. Many believe that it was this complexity that first enabled — and then defeated — the leaders in the financial services industry.
While politicians argue over the need for new regulations and controls on bonuses and pay, top global corporations continue to steer their own path in ensuring good governance. They understand the need to balance risk and opportunity, to ensure the trust of key stakeholders. Making and managing responsible commitments is fundamental to that issue of trust.
Most Admired Identified
In the first-ever study of its kind, the International Association for Contract & Commercial Management (IACCM) asked almost 10,000 contracts, procurement and legal professionals worldwide to nominate the companies they most admire for the quality of their contract management performance. These professionals identified more than 400 organizations, and this week the results of that study were announced, highlighting the top 25 most admired contract management performers in the world.
Occupying three of the top four positions are groups from the outsourcing industry. This might be expected, given the long-term nature of their contracts and the criticality of contract management to profitability, customer value and relationship retention. Indeed, it is notable that IBM heads the list, and that contract management was an area for global reengineering focus more than 10 years ago, when Lou Gerstner stated his belief that "contracting is directly linked to brand image."
Today's contract management techniques stretch far beyond the largely administrative tasks of the past. Leaders in this area have understood its critical role in both relationship and corporate governance. The contracting process provides a framework for regulatory compliance, reputational risk management and effective change control, as well as offering a source for added value and innovation.
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