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22.11.2018

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    Npower Contract Management ‘Centre of Excellence’

    Npower Limited

    An innovative Contract Management ‘Centre of Excellence’ that delivers strong Contract Management through a single lean target operating model, underpinned by a standardised methodology and transparent processes; allowing npower to deliver on its promises and have ‘one voice to its suppliers’.

    What objectives did you set out to achieve?

    We established a Centre Of Excellence within npower for all Contract Management related activities, strengthening the business’ core competencies in Contract Management and consolidating Contract Management activity within npower into a new category based approach. We also delivered an electronic document management system into a single platform with robust audit trail capability and established a roadmap for automation of transactional contract based activity

    What was your single biggest challenge in achieving them?

    The biggest challenge was how to bring Centre of Excellence (CoE) together under one model given Contract Management was spread across disparate teams and functions. This was underpinned by: Establishing what ‘best practice’ is, both internally and externally, collaborating with key stakeholders to empower change and gain leadership buy-in, embedding cultural values and governance along the way.

    What did you do differently to overcome that challenge?

    We applied a bottom-up approach, making Contract Managers the chief architects and innovating through collaboration. Delivering an engagement programme with key decision makers across c.3k npower employees to shape a single operating model. To deliver the operating model we needed to deliver alignment by bringing functions under one directorate aligned to one vision and goal and introduce automation reducing our sites from 11 SharePoint’s down to 1

    What were your most impactful outcomes?

    Single Target Operating Model (TOM)-adopted group wide, ensuring consistency of approach and quality performance. A scientific segmentation methodology- Treating contracts according to their complexity & value. Enabling us to leverage the correct Resources- c.80% of resource was deployed on 20% of our contractual value previously. Addressing this imbalance focuses more resource on the greatest value and risks. We also simplified SharePoint, ensuring GDPR compliance, auditable governance, retention of contracts & corporate knowledge at your fingertips (c.440 users & c.60k hits in 2018)

    In a sentence, what was the biggest learning you took away from this?

    To involve ALL our ‘people’ (Contract Managers) in the process of understanding the problem and solution design; achieved through our ‘Engage Programme’, where all areas of Contract Management took part in workshops, directly feeding into a single Target Operating Model, sub-processes and RACI.

    What will you do next?

    Enhance automation for the Contract Management tool to assist Contract Managers through key contractual processes. Continue to use industry best practice to drive performance & profitability. Continue to embed Positive Change through CoE Roadshows to promote & share best practice.

    Find out more about Npower Contract Management ‘Centre of Excellence’ here

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