Description
Solution
For ROSHN sourcing of the IT consultancy services, the performance measures which can be used are informed by existence of multiple stakeholders engaged. This is with requirements of risks management and executing their roles. Their terms and conditions note;
Therefore, as part of the different terms and conditions, they have clearly stipulated performance measures which need to be monitored and evaluated. These performance measures similarly include the cost savings with scope of KSA government support being provided. Also, with a utilisation of a frequent monitoring and management include guaranteeing successful performance in various organisation contexts.
To monitor and manage the performance measures identified, the areas of focus including the organisation, functional and individual as illustrated in the following;
Figure 5:Areas of performance measures review and monitoring
Source: CIPS Module Notes
The rationale for focusing on the identified performance measures informed by an understanding of strategy as part of their performance measures. The importance of this is to implement the contracts management and technical resources used. For ROSHN PS&M teams, apart from benchmarking on best strategy in their active operations.
In terms of operations being a performance measure, there is a need to consider operational performance measures for contracts implementation and collaboration with others, engaging all stakeholders to come up with right standards for practice. Since in KSA there are organisations which have successfully engaged appropriate performance measures, they could pursue benchmarking in the contracts implementation (Zhang et al., 2024).
In terms of stakeholders inclusion in contracts management, for ROSHN, different stakeholders are engaged for improving awareness on the contracts management and potential risks as highlighted in earlier identified risk register components. The rationale of engaging multiple stakeholders in the evaluation process is monitoring and measuring how the contract is successfully implemented/pursued. Through this, it is possible to note all the issues which potentially hinder a successful contract implementation (Treinta et al., 2020). The included stakeholders are in a position of understanding the scope of trust in place, contracts implementation requirements, unsuccessful engagement and uncertainty prioritised. All these areas would need to be prioritised with all stakeholders involved in collaboration for successful operations. A priority need to be appropriately under coordination through collaboration of different PS&M teams. The priority to instruct and enlighten entire stakeholders for a successful contract management process.
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- In summary, this assignment has focused on evaluating the source of power and risk of an organisation contractual terms. This has been conducted through the focus of SSMC organisation which is currently being engaged in procurement of first aid materials.
- Through a series of analysis, the power and risk distribution has been evidenced as varying in different phenomenon to SSMC and their engaged suppliers. The rationale of this is that for the success of a contract, the legal provisions are critical among the involved parties with clearly set requirements to be adhered to or abstained.
- By using different tools including supplier preferencing matrix, Porter’s 5 forces and Turn-key model have been adopted for this research.
- It has been established that in most instances, SSMC has the power with majority of the risks being held by the supplier. An evaluation of the different components of the contract has been conducted with the clauses of interest including costs, quality level, time for delivery and ethics which influence the power and risk of the suppliers.
- From the analysis of stakeholders by use of the Mendelow stakeholder’s matrix and SWOT analysis, the various issues and risks represent the noted issues in procurement of the fast aid and safety measures in today COVID-19 pandemic.
- As evidenced in the Kraljic analysis, various contract terms are of strategic relevance to SSMC which affirm on its approach of holistically leveraging on contractual risk and power.
- Where the SSMC lacks a holistic balance on the risks and power, a warrant or insurance is granted for guaranteeing their safety.
