Accountability in Contract Management: The Contract Owner

I want to share some thoughts about one of the key roles in any contractual situation, that of the Contract Owner. I personally am a “sucker” for accountability and as contracts have an objective (and that is not just: I want to buy or sell something) there is always a business owner of a contract….

Having a strong and committed senior executive as the contract owner brings significant benefits in a business agreement. Here are some reasons why:

1. Strategic alignment: The senior executive can ensure that the contract aligns with the company’s strategic goals and values. This can prevent conflicts and misunderstandings down the road, and increase the chances of a mutually beneficial outcome.

2. Accountability: The senior executive is accountable for realizing the intended contract objectives. They have s strong connection to the commitments and obligations. This creates a culture of trust and transparency, and reduces the risks of breaches or disputes.

3. Continuous improvement: The senior executive will monitor and evaluate the performance of the contract, and seek feedback from stakeholders and drive realization of goals. This will lead to continuous improvement of the contract terms, processes, and outcomes, and foster a culture of innovation and learning.

4. Relationship building: The senior executive will leverage its network and expertise to build and maintain positive relationships with the other party. This will open up new opportunities for collaboration, referrals, and growth, and enhance the reputation and credibility of the company.

5. Risk management: The senior executive can relate to -and work to- proactively identify and mitigate potential risks and issues related to the contract, such as legal, financial, or reputational risks. This can save time, resources, and headaches, and ensure compliance with regulatory and ethical standards.

A strong and committed senior executive as the contract owner can enhance the value and impact of the contract, and promote a culture of excellence and trust. If you are looking for ways to optimize your contracting processes, consider the role of the senior executive as an essential and valuable one.

Arjen van Berkum

Arjen van Berkum is a columnist, keynote speaker and motivator, with an eye for business ecosystems, innovation and disruption. In addition to his work as technology and contract management evangelist, he is a visiting lecturer at Delft University of Technology (TU Delft).