Vision, mission, and strategy for the contract management unit

When organizations focus on improving their contract management, it is important to have goals and direction for the work. This should not be done solely for the contract management function's own sake, but also so that others in the organization understand these goals. Therefore, it is important to prepare a vision, mission, and strategy for the work. 

But what exactly is a vision, mission, and strategy? And what can it look like for contract management?

A Vision typically provides guidance on what the company seeks to achieve in the future and how the employees' daily tasks ultimately contribute to achieving the long-term goals.

A Mission defines the current state or purpose of an organization, i.e. what it does now, who it does it for and how it does what it does. The mission gives employees a better perspective on how their own daily tasks contribute to achieving the business' goals and strategies, which can increase engagement, loyalty, and productivity. Having a clearly defined mission also helps employees better understand decisions made throughout the company and understand the need for organizational changes and resource allocations. This reduces resistance to change and reduces conflict in the organization.

In addition to the benefits already mentioned, a clear vision and mission can also strengthen the company culture through a common understanding of the reason for the set goals, improve decision-making because there is clarity about the "bigger picture" and help to strengthen and deepen cross - organizational and interdisciplinary relationships through a shared understanding of goals and priorities.

Below you can see an example of a vision, mission and strategy for a contract management function, a contract management unit or what you have decided it should be called in the specific case.

Example of a vision, mission and strategy for a contract management function

Vision

The Contract Management function's overall vision is that contract management must contribute to the creation of optimal value in the organization's contracts, with due regard for the organization's strategies, while managing risks and complying with all necessary laws and regulations.

Mission

Through coherent processes that cover all contractual phases, the Contract Management function must ensure:

• that the organization's needs are optimally met
• that budgets and deadlines are adhered to
• that business operations, processes and activities involving contracts are continuously made more efficient and effective, and
• that the need for innovation and sustainability in business is supported

Strategy

The Contract Management function's strategy is to cover all phases of the contract (its life cycle, contract lifecycle management), from the need for a contract arising in the business, through negotiation, contract preparation, integration into business, ongoing activity to renegotiation, renewal, or termination. This ensures that contracts and their management are based on an understanding of business and customers, while at the same time contract management supports the opportunity to develop the business.

The Contract Management function must, through the preparation and compliance with the necessary policies, practices, and processes, ensure an optimal entering and management of contracts that make it possible to realize business goals and gains, comply with budgets, increase operational reliability and ensure standardization and consolidation. At the same time, the Contract Management function, based on its systems and its experience, can help the business to select the right business partners and develop new business.

Through its culture, the Contract Management function will ensure that, to the extent necessary, work is carried out across the relevant business units, and that the relationship between all relevant parties, including customers and suppliers, is based on openness, trust, and cooperation.

The Contract Management function must possess the knowledge, skills, and tools necessary to realize the mission and vision. Strategic competence development programs and visible career paths for both managers and employees in the Contract Management function must ensure this.

The Contract Management function must oversee training programs that will increase the contractual and commercial competences in the organization as well as among the customers the organization serves.

It is necessary to have a responsible person who can be contacted to keep the above updated. You can e.g. announce this: “If you have questions or comments about this Vision, mission, and strategy, please contact the head of the Contract Management function, NN, nn@cmfunction.company.com"

You are welcome to contact NSCCM if you would like consulting assistance in developing visions, missions, and strategies for contract management or any other matter related to contract management. Write to britt.torp@nsccm.dk or call 7020 0131.

Literature: *See e.g. WorldCC, Benchmarking reports 2021 and 2023; Garrett & Rendon: Contract Management. Organizational Assessment Tool (2005).