The goal of a governance structure
To design and institutionalize an effective, collaborative governance structure to deliver strategic insight. (Institutionalize, means have a system in place that works even though key individuals leave the organization, and even if the champion moves on to other initiatives.)
The key to your success is to develop consistent, formalized processes, reporting, and roles structure. Ideally, the supplier would participate in the implementation of the structure in that they would assign the right people to fulfill the reporting and roles structure.
Too often, parties do not realize the heightened level of relationship management in larger, complex, and long-term relationships required to deliver desired outcomes. This subsection will outline best practices for contract professionals and project managers when working with highly strategic supplier relationships.
The focus will be on the contract professional’s role in drafting, formalizing, and documenting the governance mechanisms in the agreement. If the relationship requires specific customer/supplier participation in governance meetings, add a governance section, schedule or exhibit to the contract. That means drafting governance provisions and including them as you would performance measures— something that is enforceable to drive performance.
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