Achieving competency in Contract Management in an organization is not an overnight affair and needs time and efforts. The best way to acieve maturity is by planning the whole process in steps spanning for a finite number of years.
By observing those organizations who have arrived maturity in contract management, organizations could plan road maps to attain maturity in contract management. One such model is Contract Management Maturity Model (CMMM) and the CMMM© consists of five levels of maturity ranging as listed below;
Level 1 – Adhoc: The organization realizes the benefits of contract management and possess some functions in contract management which are applied on adhoc projects. The personnel involved in such functions are not accountable for their work in contract management.
Level 2 – Basic disciplined process capability: Basic contract management processes exist within the organization but are used only for special projects of high value, or landmark projects, or belonging to prominent clients. The processes are not applied for the whole organization.
Level 3 – Structured, established and institutionalized processes capability: Contract management processes are fully established within the entire organization, and are mandateory.
Level 4 – Integrated processes with other corporate processes resulting in synergistic corporate benefits: Contract management processes are fully integrated with all organization core precesses. Management is fully involved in monitoring the processes.
Level 5 – Optimized processes focused on continuous improvement and adoption of lessons learned and best practices: The highest level and the organization has achieve maturity in contract management. Continuous process imporement is implemented by utilizing lessons learnt, and best practices.
By the use of similar models, interested organizations could evaluate their existing levels and plan ahead to achieve the maturity level in a systematic and professional approach.