Who is Your Tom Brady?

Do You Have a Quarterback for Your Contractor Management Process?

Contractors play a pivotal role in the success of owners and prime contractors in high-risk industries. And an effective management process is essential to ensure that contractors are well-coordinated. This article explores the role of the Contractor Management Process Owner (CMPO) and how to identify and support one. Read on!

What is a Contractor Management Process Owner?

First, let's define 'process.' A process is a structured and repeatable series of steps that accomplish a defined business objective — for example, contractor management has seven steps spread across three phases.

Therefore, a process owner is accountable for designing a system, using the right combination of people, technical knowledge, and organizational support to effectively run the process.

A Contractor Management Process Owner (CMPO) is a person who is responsible for the oversight, development, and implementation of a contractor management process within an organization.

Benefits of Having a Contractor Management Process Owner

Having a CMPO in place provides an organization with several benefits.

• The role helps to ensure that contractors are managed to meet the organization's objectives and requirements. This reduces the risk of non-compliance by internal and external stakeholders with the organization's standards.
• The role helps to ensure that all stakeholders are aware of the contractor management process and manage changes that may be necessary
• The role helps ensure consistency in applying the standards and needed behaviors.

Responsibilities of a Contractor Management Process Owner

The primary responsibility of a CMPO is to ensure that the contractor management process is implemented and working effectively. This includes:

• Developing and implementing management standards that document each process step.
• Engaging stakeholders to ensure alignment with standards
• Monitoring and evaluating the process to ensure it complies with the organization's standards.
• Defining the objectives and mission of the process (i.e. a current and complete approved contractor list).
• Optimizing the process (i.e. automated or semi-automated, electronic document management or email, single-stage prequalification or two-stage).
• Monitoring performance targets (i.e. contracts issued to prequalified vs. post-qualified contractors).

Attributes of the Process Owner

The right combination of experience, knowledge, and training makes for a high-performing process owner. The primary attributes are:

• A good understanding of how the organization operates. Not just on the policy and procedure level but on the 'who gets stuff done' level. Knowing how organizational support is gained and how a process is maintained in the long term for the particular organization is critical.
• A positive relationship with the process sponsor (more about this critical role in a subsequent blog) and other key stakeholders is essential to the ongoing success of the process.
• Understanding the legal and regulatory framework that applies to the organization's contractor management process. For example, if the contractors are highly regulated or represent unusual risk, the process owner needs awareness of the particulars.
• Good reference points for clients' requirements so that the process aligns where necessary to meet client expectations.
• Knowledge of the different types of contracts and their associated risks.
• Experience working with stakeholders, such as contractors, project management, field operations, procurement, quality, and other stakeholders, to ensure that their requirements are met.

Identifying and Appointing a Process Owner

Identifying and appointing a CMPO can be a difficult task for organizations. The first step is to identify the individual that is best suited to the role. This individual should have the skill set and experience necessary to develop and implement the process. Additionally, they should have the interpersonal skills to work with different internal and external stakeholders.

Once the individual has been identified, a formal appointment by the organization legitimizes the role and the individual. The announcement is best made by the Process Sponsor or other sufficiently high-ranking leader.

Once selected, the individual needs the resources to manage the process effectively. This includes providing access to the organization's policies and procedures, face time with the Process Sponsor, and direct communications with other key stakeholders. A significant success factor for Process Owners is the quality of their relationships with the Sponsor (a role covered in a subsequent blog) and the day-to-day operators of the process.

Developing the Role

Once the process owner has been identified and appointed, role development is the next critical step. The role should include the responsibilities and duties necessary to administer the process effectively. Additionally, the function requires the authority to monitor and report on actions critical for implementation and sustainment.

The role definition should also include the necessary training and resources for the CMPO to thrive and deliver value. The function will ideally have accountability measures to ensure that they and the organization meet the objective of the organization's contractor management standards.

Critical Strategies for Successful Contractor Management Process Ownership

Once the process owner is in place, these are the key strategies to help ensure their success:

• Charge to the process owner responsible for developing a plan for how the process will be implemented and managed. The resulting Contractor Management Standard defines the roles and responsibilities of each stakeholder that inputs to the process. The Standard includes the critical deliverables and reporting requirements for each stakeholder.
• Establish a roll-out and communication plan to ensure all stakeholders know their deliverables and reporting requirements.
• Develop a system for monitoring and evaluating the process to ensure it meets the organization's goals and objectives.
• Develop a method to health check and optimize the process over time. Optimizing the system for sustainability is a critical success factor.

Considerations for Small Organizations

The role of the process owner requires dedicated effort at critical phases of the process's development, implementation, and sustainment. It does not typically require a significant daily time commitment. For clarity, the Process Owner's role is not the same as the Process Administrator's. The process administrator is often a full-time role for many high-risk organizations. In some companies, the same individual manages both functions.

Some organizations feel under-resourced to justify a designated contractor management quarterback. In these cases, the process owner's responsibilities typically default to line managers and their support staff, either officially or unofficially.

Project managers and field superintendents, purchasing, health and safety, and administrative staff pick up various elements of the role. In these cases, it's essential for management to, at a minimum, document the actions needed to meet the legal and regulatory requirements (i.e. verification of insurance and business licensing). Distribute the criteria to each stakeholder that has contractor management responsibilities, then monitor performance. A periodic health check (i.e. annual) initiated by a senior leader is recommended to review the process and make adjustments. 

If you are a prime Contractor, your legal duties are higher for coordinating the work and the contractors. Therefore, your process needs to be robust enough to meet those obligations. This generally means more communication of requirements and tighter controls. Implementing a contractor management standard, with legal and regulatory minimums as its base, is a project management best practice.

Conclusion

Establishing a contractor management process owner is a best practice for prime and general contractors in high-risk industries. A CMPO is responsible for developing and implementing an effective contractor management standard and monitoring and evaluating the process to ensure it meets the organization's goals and objectives.

Finding an effective CMPO can be a difficult task for organizations. However, by following the steps outlined in this article, organizations can identify an individual best suited to the role. Additionally, organizations should ensure that they provide the process owner with the necessary resources and training to manage the contractor management process effectively and get long-term value.