Finance:Contractual Management
Contractual Management (CM) aims at the steering of organizations, transactions and business cooperation through the use of contracts. As an inductive, management-oriented concept, the CM approach is based on the perspective of a decision-maker and thereby covers and aligns all contract-related processes and parameters that must be considered in order to achieve the objectives of the organization or institution.
Theoretical foundations
The CM approach and its instrumentalization, the CM Model, were developed by Ralph Schuhmann and Bert Eichhorn.[1] This approach and model merge the theoretical findings of new institutional economics, in particular asymmetric information, principle-agent and relational management theories, with the applied, management-oriented approaches of Proactive Law and Norwegian academic Petri Keskitalo’s concept of Contractual Risk Management,[2][3] which both emphasize the use of risk management for contract deployment. In contrast to contract management, the CM approach is not concerned with the management of the contract, but rather with the management of an organization or relationship through the use of the contract.
The CM Model
The CM Model represents a holistic system that comprises all elements relevant for the use of the contract as a steering instrument. It highlights the fact that the contractual management tasks – contract plan, draft, implement, monitor, and evaluate – are executed within an environment which is determined by management processes and decision parameters. Risk management[4] and knowledge management[5] comprise the core management processes that enable a goal-oriented deployment of the contract through their interactions with the processes of corporate management and management of the relationship. The particular company and business relationship as well as societal norms and value systems determine the specific decision parameters which will ensure compliance with company objectives.
Fields of application
The CM approach and the CM Model were originally developed for the governance of transactions and business cooperation in the private sector. Case studies[6] show evidence that the approach and model are also applicable to public organizations if adapted to the specific working conditions of administrative bodies. Furthermore, the CM approach may be equally useful in the management of quasi-markets through contracts and thus are applicable on an institutional macro level. Even constellations encountered in political management can be addressed by the contractual management approach and model.
References
- ↑ Schuhmann, Ralph; Eichhorn, Bert (2015-01-01). "From Contract Management to Contractual Management". European Review of Contract Law 11 (1): 1–21. doi:10.1515/ercl-2015-0001. ISSN 1614-9939.
- ↑ University of Tromsø, Contractual Risk Management (C-RM), accessed 6 January 2021
- ↑ Keskitalo, Petri (2006). "Contracts Risks Management". Nordic Journal of Commercial Law 2006: [i]. https://heinonline.org/HOL/Page?handle=hein.journals/njcl2006&id=143&div=&collection=.
- ↑ Schuhmann, Ralph; Eichhorn, Bert (2017-07-10). "Reconsidering Contact [sic] Risk and Contractual Risk Management" (in en). International Journal of Law and Management 59 (4). doi:10.1108/IJLMA-02-2016-0023. ISSN 1754-243X.
- ↑ Eichhorn, Bert; Schuhmann, Ralph (2012). "Integration von Wirtschaft und Recht: Vertragswissensmanagement". Akademie 2012-2: 41–44. https://www.vwa-akademie-online.de/wissenschaft-und-praxis/integration-von-wirtschaft-und-recht-vertragswissensmanagement/.
- ↑ Schuhmann, Ralph; Eichhorn, Bert (2019). Contractual Management: Managing through Contracts.. Wiesbaden: Springer Vieweg. ISBN 9783662584811. OCLC 1066107607. https://www.springer.com/de/book/9783662584811.
 |
