| Date post: | 22-Jan-2018 |
| Category: |
Business |
| Upload: | pablo-cilotta |
| View: | 791 times |
| Download: | 2 times |
THE ROLE OF THE CONTRACT
MANAGER IN LATIN AMERICA
IACCM FORUM
October 7, 2015
Pablo Cilotta
Director South & Central America IACCMInternational Association for Contract & Commercial Management
[email protected] - www.iaccm.com
The year of
Commercial Excellence
2015
¿Contract Management?
• Contract Manager
• Contract Administrator
• Contract Analyst
• Contract Engineer
• Head of Contract Management
• Gestor de Contratos
• Administrador o
Analista de contratos
• Ingeniero de
contratos
• Gerente
Contractual
DISCUSSION TOPICS
• What is the status of Contract Management in Latin America?
• Is Contract Management an established discipline in the region?
• Do we have a CM strategic role in Spanish speaking countries?
• Is Latin America far from the US and Europe in terms of CM?
• How can corporate headquarters improve efficiency in their Latin
American subsidiaries to reduce contract failure?
• How can GCs and Heads of CM based in the US or Europe make
appropriate use of their CM organizations in Latin America?
• How could IACCM help them introducing value to their contracting
teams and then reduce failure of contracting processes?
Start-up phase of the CM role
2010: Tim Cummins at the first IACCM event in LatAm:
“Contract Management isn’t an established discipline
in the region”
CM is often seen as an administrative function
Performed by low level administrators
With very little focus on the proactive, value-add
approach that the position really requires.
Copyright © 2015 IACCM. All rights reserved
Lately we have seen
Contract Management…
beginning to emerge as a recognized profession in LatAm
The role is on the way to becoming essential,
recognized as a strategic element of business in the near
future.
However… The change is slight and the profession still in the early
stages of development.
The professionalism of our discipline is undoubtedly in the
start-up phase.
Copyright © 2015 IACCM. All rights reserved
With the exception of:
some US and European top multinationals that invested in
the region,
and also the so called “multilatinas” (local multinational
companies born in Latin America and with market focus on
emerging economies)…
Contract Management roles are not common, and the
interest in this area of competence in Latin American
countries is not at the same level as in more established
markets like the US and Europe.
Copyright © 2015 IACCM. All rights reserved
Growing Interest
Region % reporting growth of interest by top management
Africa 46
Australia 56
Asia 52
Europe 60
Middle East 74
India 58
North America 63
South & Central America 55
Copyright © 2014 IACCM. All rights reserved.
… and companies invest in this capability
Region % reporting growth of capability in last 2 – 3 years
Africa 61
Australia 67
Asia 52
Europe 65
Middle East 71
India 58
North America 64
South & Central America 82
Copyright © 2014 IACCM. All rights
reserved.
Cities with more interest in organizing IACCM events, member meetings and trainings
23.95
19.97
17.97
9.65
9.32
7
3.573.57
4.65
0.35Buenos Aires
Sao Paulo & Rio
Madrid
Mexico DF
Barcelona
Bogotá
Santiago de Chile
Lima
Caracas
Otras
Copyright © 2015 IACCM. All rights reserved
TOP TEN NEGOTIATED TERMS
IN LATIN AMERICA
(c) 2015 IACCM All Rights Reserved.
REST OF THE WORLD
(c) 2015 IACCM All Rights Reserved.
LATIN AMERICA
Does your company have a CM role
performed by Contractual practitioners?
40%
66%
60%
34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
NO
YES
Is LatAm far from US & Europe?
How far? How many years?
Why?
No material about Contract Management in Spanish
Different realities
Our culture doesn´t enable the introduction of these changes on time
No contract management culture locally. Lawyers culture instead
Companies simply do not understand what contract management is
Copyright © 2015IACCM All rights reserved.
SPAIN
(c) 2015 IACCM All Rights Reserved.
“We have some points in common in general,
so differences are in terms of how reality and
local idiosincracy impact on contracts and
negotiation”
“In Spain, CM only exists in multinational
corporations. No idea in local Spanish
environments”
“Once the contract has been signed, we
archive it in our desk drawer and
we go back to it in case of problems”.
MEXICO
(c) 2015 IACCM All Rights Reserved.
“We live a completely different reality, so
we´ll need to adapt Contract Management
material to our needs, to be practical”
“We are +10 years far from the US”
“In many Mexican companies, CM function
has been limited to top contracts with
relevance due to their figures”
VENEZUELA
(c) 2015 IACCM All Rights Reserved.
“Contract Management is focused on the
administration tasks of the agreements”
“Commercial Excellence is much more
related to the Sales teams rather to the
Contracting organizations”
GUATEMALA
In LatAm we are familiar with avoiding
contracts to prevent failures. We don´t see
the contract as a tool to manage projects”.
(c) 2015 IACCM All Rights Reserved.
COLOMBIA
“Latin America will have to chose between
the American standard, the British model
or why not, the IACCM global one
adjusted to the local environment”
ECUADOR
“It is a practice followed by multinational
companies, to apply here the best practices
identified in their headquarters”
BRASIL
(c) 2015 IACCM All Rights Reserved.
“Spain should show us the way to follow in
LatAm. We see many Spanish companies
investing in Brazil
and they should contribute to CM”
ARGENTINA
“No CM culture locally. Lawyers culture instead.
Companies in Argentina simply do not understand
what CM is. They believe they just need
an attorney, instead of someone
specialized in all related issues
(legal, finance, etc.)”
What can we do?
Change the approach and strategy when managing
contracts and negotiating
Make sure Top Management in LatAm understands the
benefits of the CM
Share information regarding contract management to upper
management
Publicize IACCM in the region
Provide training in contract management
Case studies and best practices from other countries, KPIs
to be applied
Improve the number of events in the region
On line learning programs in SpanishCopyright © 2015IACCM All rights reserved.
The road ahead
Contract Management in Latin America will soon be
deemed as a “fast growing” and complex
discipline.
The role will become more robust and common in
organizations throughout the region.
One of the main drivers for this growth is
internationalism and global operations.
IACCM will be part of the continued growth and
success of CM in Latin America, due to our deep
commitment to contracting best practices and
commercial excellence. Copyright © 2015IACCM All rights reserved.
THANKS !IACCM - Leaders in Value-Driven Trading Relationships
• Forums and networking
• Training and certification
• Research and advisory
• Skills and knowledge
• Online Learning
Contact in Latin America & Spain
Pablo Cilotta
+54911 67 51 67 67
http://www.linkedin.com/in/pcilotta
Join our IACCM en español subgroup!
© IACCM 2015
33,000+ Members
13,700+ Corporations
159 Countries
