Why Contract Management Is the Hidden Lever in Project Success

When projects fail to deliver on time, on budget, or at expected margins, the root cause is often not the engineering, the technology, or even the customer. More often, it lies in how contracts are structured, managed, and executed.

Contract Management is not paperwork — it is project management in practice.

From proposal through delivery, a strong contract management discipline drives clarity, reduces risks, and protects profitability. Let’s break down why it matters — and what “good” looks like.


1. Contracts start before the contract is signed

In many organizations, contract management is treated as an afterthought. But the seeds of success (or failure) are planted much earlier — in the proposal and tender process.

  • Involving engineering, procurement, and project management early avoids gaps and misaligned expectations.
  • Using structured checklists and scoring models helps decide when deeper technical consultation is needed.
  • Better-prepared bids increase hit rates and reduce margin leakage later.

2. Scope clarity prevents costly disputes

The difference between a Lastenheft (customer’s requirements) and a Pflichtenheft (detailed supplier specification) may sound academic, but in practice it is the line between smooth execution and endless disputes.

  • A precise inquiry (Pflichtenheft) is the foundation for project planning, budgeting, and risk management.
  • Everything not clarified upfront will turn into a change order or worse, a claim.

3. Change is inevitable — manage it

Scope changes are unavoidable. The difference lies in how they are handled:

  • Change orders (Nachträge) should follow a formal process with clear documentation, impact analysis, and customer approval before implementation.
  • Claims (Nachforderungen) arise when changes are disputed. At this stage, costs are higher, relationships strained, and outcomes uncertain.

A disciplined contract management framework moves more changes into the “controlled” bucket and fewer into the “conflict” bucket.


4. Contract management is cash flow management

Good contract management is not just about avoiding losses — it’s also about improving liquidity.

Clear milestone acceptance criteria accelerate invoicing.

Continuous tracking of project costs and cost-to-come will form a solid base for PoC (Percentage of Completion) and ensures financial transparency.

Active steering of payment terms, securities, and guarantees stabilizes project cash flow.


5. It’s a team sport

Successful contract management requires more than legal expertise. It involves:

Sales, engineering, procurement, and project management working in sync.

Standardized documentation and clear governance structures.

Leadership commitment to continuous improvement, learning, and sharing best practices.


The ROI of getting it right

Strong contract management means:

Higher margins (through reduced leakage and better risk control)

Faster project starts (with better-prepared bids and handovers)

Fewer disputes (thanks to clarity and structure)

Stronger customer and supplier relationships

In short: Contract management is not an administrative burden — it’s a value driver.


✅ If this resonates, and you’d like to explore how to strengthen contract management in your organization, let’s connect.

Busy People are your Problem

The realization has set in: change is necessary. Markets evolve, customer expectations shift, competitive pressure grows — and standing still is not an option.

But here’s the challenge: the day-to-day business doesn’t pause just because transformation is required. Operations, customers, and financial commitments remain the top priority. And in most organizations, people are already stretched thin. Spare capacity for a complex transformation program is rare.

The Availability Trap

When internal resources become “available,” the instinct is often to assign them to transformation initiatives. But ask yourself:

  • Do they have the competence and experience to design, align, and execute a complex program?
  • Do they have the standing within the organization to make tough decisions stick?

Because one thing is clear: availability is not a skill set.

How to Free Up Resources

Some companies try to create bandwidth by shifting more routine tasks away from management, creating breathing room for leaders to focus on transformation. While this helps, it is often not enough. Transformation requires dedicated expertise, structure, and focus — qualities that are hard to maintain when you are simultaneously running the daily business.

The Role of External Support

This is where external support adds real value. Experienced transformation leaders bring:

  • Clarity in framing and prioritizing initiatives
  • Focus on execution, avoiding detours and delays
  • Structure to align teams and keep programs on track
  • Delivery certainty, based on repetition and proven methods

Even more important: external experts accelerate implementation. And speed matters — because the earlier synergies, cost savings, and growth effects are realized, the faster the transformation pays for itself. In fact, this acceleration is the ROI of external support.

Final Thought

Transformation is not about choosing between business-as-usual and change. It’s about ensuring both run in parallel — the daily business without disruption, and the transformation with the focus it requires. With the right mix of internal commitment and external expertise, companies can achieve both.

👉 If this resonates and you’d like to explore how to balance transformation with daily business in your organization, feel free to connect with me.

“𝗔𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝘀 𝗻𝗼𝘁 𝗮 𝘀𝗸𝗶𝗹𝗹 𝘀𝗲𝘁.”

When companies set up transformation programs, it’s tempting to staff them with whoever is available internally. But availability alone doesn’t equal readiness.

Transformations are rare, often once-in-a-lifetime events for most organizations. Internal leaders and teams may be excellent in their day-to-day business — but lack the routine and repetition required to steer and deliver such programs with confidence.

That’s where experienced transformation leaders come in. With proven methodologies and execution discipline, they move faster, stay focused, and avoid the pitfalls of trial-and-error. The result? Earlier realization of synergies, accelerated cost reductions, stronger market impact, smoother integration — and ultimately, higher ROI on the program itself.

That’s why bringing in experienced transformation leaders isn’t a cost — it’s an accelerator of ROI, ensuring synergies, cost savings, and market gains are realized sooner.

👉 If this makes you think, and you’d like to explore how external expertise could support your transformation or change program, let’s connect.

𝗪𝗵𝗮𝘁 𝗿𝗲𝗮𝗹𝗹𝘆 𝘀𝗹𝗼𝘄𝘀 T𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻𝘀 𝗱𝗼𝘄𝗻

It’s rarely the big strategic questions. Much more often, it’s the small things:

·       Functional interfaces that don’t align
·       Missing pieces of information
·       A lack of structure in execution or customer communication

Surprisingly, management is usually aware of these issues. And yet, decisive action doesn’t follow. That’s where value gets lost.

The difference-maker? Moving from awareness to implementation.

🔍 My role in many projects is exactly that:

·       Identify the real root cause
·       Reconcile countermeasures across functions
·       Align resources
·       Drive swift, focused execution

Because at the end of the day:

👉 Awareness is good — but implementation is king.

If this resonates, and you’d like to exchange perspectives, I’m always happy to connect and discuss how to capture value in your context. Curious how this plays out in your business. I am looking forward to your comments.

5 Questions I Ask Before Starting Any Transformation Program

Before I help a client launch a transformation, I ask these five questions.
If we don’t have clear answers, we don’t start. It’s that simple.


1. What’s the real problem we’re solving?

Be honest. Is it a cost issue? A customer issue? A culture issue?
Transformation without diagnosis is theater.


2. What does success look like — and who defines it?

Is it EBIT margin? Resilience? A new org model?
And whose expectations shape that?


3. Who’s sponsoring the program — and how visible are they?

Without senior ownership, no transformation survives long.
Is leadership ready to lead from the front?


4. What internal resources are available — and what’s missing?

You can’t staff transformation with whoever is free.
Top people make the difference.
My Rule #4: Availability is not a skill set.


5. How will we handle all the “other stuff” we’ll discover?

No plan survives contact with reality. You’ll find other issues.
Have a system for capturing and sequencing them — or they’ll derail your program.

Transformation on Demand

When You Need Impact, Not a Consultant Army

Not every transformation needs a slide-heavy consulting team. Sometimes you need a pragmatic partner who moves things forward with you. That’s what “transformation on demand” is about.


It works when:

  • You have a program but no structure
  • You need momentum without increasing internal workload
  • You want senior impact — not junior staffing

It brings:

  • Clarity on scope, timeline and resources
  • Structured check-ins
  • Hands-on support with just enough documentation
  • An external view, free from internal politics

The value?

You get:

  • Faster progress
  • Focused implementation
  • Better decisions — with less internal distraction

Transformation isn’t about doing more — it’s about doing what matters, in the right order, and with the right energy.

What Makes a Good Carve-Out Plan?

Carve-outs are the open-heart surgeries of business. One wrong move — and the patient bleeds cash, customers, or talent.

Here’s what separates smooth carve-outs from painful ones.


1. Start with a clear scope and end-state

Define:

  • What’s in scope?
  • What’s the NewCo’s minimum viable setup?
  • What must be ready by Day 1?

Ambiguity here creates chaos later.


2. Plan with functions — not just for them

Finance, IT, HR, Operations, Sales… each team needs to co-design the carve-out.

This avoids surprises and ensures ownership.


3. Build your TSA logic early

Don’t treat TSAs (transitional service agreements) as an afterthought.

Agree early:

  • What services are needed
  • For how long
  • At what cost
  • With what exit logic

4. Address organizational identity

The NewCo isn’t just a legal entity.
It needs:

  • A leadership team
  • Roles and processes
  • A minimum culture and communication backbone

5. Don’t skip the culture and compliance dimension

Align values, define behaviors, and ensure legal basics:

  • Contracts
  • IP rights
  • Licenses
  • Data ownership
  • Code of conduct

The 100-Day Plan for Post-Merger Integration

The deal is signed. Day 1 is coming.What now?

Integration doesn’t start after Day 1 — it starts the moment you realize value isn’t created by signing a contract, but by making two businesses work together.

Here’s how to approach the critical first 100 days.


1. Focus on what matters most first

Not everything at once. Prioritize:

  • Functional (not systems) integration: Finance, HR, IT
  • Stabilizing key operations
  • Customer continuity
  • Leadership alignment

2. Assign a Program Lead who has actual authority

Post-merger integration is not a side project. It needs:

  • A dedicated leader
  • With C-level backing
  • And the time to do the job

3. Design your governance up front

Set up:

  • A steering committee
  • Decision forums
  • Escalation logic
  • Reporting cadence

…and stick to it.


4. Communication beats speculation

People hate uncertainty. Tell them what’s changing, what’s not, and when more info is coming.

Silence creates fear.
Structure creates trust.


5. Track and deliver early wins

Confidence builds when people see results.

Pick 1–2 visible improvements and make them real in the first 100 days.
It buys you credibility and momentum.

𝗠𝗲𝘁𝗵𝗼𝗱𝗲𝗻𝗸𝗲𝗻𝗻𝘁𝗻𝗶𝘀 𝘃𝘀. 𝗕𝗿𝗮𝗻𝗰𝗵𝗲𝗻𝗸𝗲𝗻𝗻𝘁𝗻𝗶𝘀 – 𝘄𝗮𝘀 𝘇ä𝗵𝗹𝘁 𝗺𝗲𝗵𝗿?

Wenn Unternehmen einen Berater für ein Projekt suchen, höre ich oft dieselbe Frage:

„Kennt er unsere Branche?“

Mein Blick darauf ist differenziert – und pragmatisch:

✅ Branchenkenntnis kann Türen öffnen, Prozesse beschleunigen, Begriffe erklären sich manchmal von selbst.

✅ Methodenkenntnis hingegen entscheidet oft darüber, ob ein Projekt überhaupt zum Ziel kommt.

Gerade im Bereich „Transformation“ braucht es nicht nur fachliche Nähe – sondern Verständnis, Struktur, Steuerung, Kommunikationsstärke und die Fähigkeit, durch Unsicherheit zu führen.

Ich bezeichne mich daher bewusst als 𝘣𝘳𝘢𝘯𝘤𝘩𝘦𝘯-𝘢𝘨𝘯𝘰𝘴𝘵𝘪𝘴𝘤𝘩. Meine Projekte reichen von Chemie über Automotive bis zu E-Commerce und Software-Qualitätssicherung. Was diese Erfolge verbindet?

👉 Ein klarer Plan.

👉 Ein methodisches Vorgehen.

👉 Die Fähigkeit, Führungsteams und Organisation in Bewegung zu bringen.

🔍 Was bedeutet das für Auftraggeber?

·       Prüfen Sie fachliche Relevanz – branchenspezifisches Wissen kann helfen, ist aber kein Erfolgsgarant.

·       Fragen Sie: Hat die Person Transformation strukturiert begleitet – oder „nur erlebt“?

·       Bauen Sie eine Exit-Strategie ein: Ein gut definierter Scope, Meilensteine und ein Review-Point nach 30 Tagen geben Ihnen volle Flexibilität.

Mein Rat: Entscheiden Sie nicht für oder gegen Branchenkenntnis – sondern für Wirkung.

👉 Wenn Sie Ihr Transformationsprojekt auf stabile Beine stellen möchten – mit Klarheit, Struktur und Tempo – freue ich mich über Ihre Nachricht.

𝗦𝗹𝗼𝘄𝗶𝗻𝗴 𝗱𝗲𝗺𝗮𝗻𝗱 𝗶𝘀𝗻’𝘁 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗽𝗿𝗼𝗯𝗹𝗲𝗺. 𝗜𝘁 𝗷𝘂𝘀𝘁 𝗿𝗲𝘃𝗲𝗮𝗹𝘀 𝘁𝗵𝗲 𝗼𝗻𝗲𝘀 𝘆𝗼𝘂’𝘃𝗲 𝘁𝗼𝗹𝗲𝗿𝗮𝘁𝗲𝗱 𝗳𝗼𝗿 𝘁𝗼𝗼 𝗹𝗼𝗻𝗴.

💡 When the order book slows, inefficiencies show. Economic headwinds are exposing the cracks—and let’s be honest, some of them have been there for a while:

🔸 Strategic initiatives that stalled mid-flight
🔸 Integration benefits that never materialized
🔸 Operating costs that feel heavier by the day

CFOs know: The math doesn’t lie. Private Equity sees value erosion on the horizon.

Behind closed doors, leadership teams are asking the right questions:
🔍 Where are the true levers to improve margin and cash flow?
🏭 Which sites, SBUs, or teams are underperforming?
👤 Who’s really driving results—and who’s been coasting?

You want to act—but don’t have the bandwidth or the right transformation lead to drive tough, structured change. Not someone with a playbook. Someone who understands the real business levers.

✅ Yes, transformation comes at a cost.
❌ But not acting comes at a higher one: Eroding EBITDA. Delayed exits. Difficult conversations with shareholders.

👉 That’s where I come in. I support CFOs and PE-backed leadership teams in engineering-heavy businesses by:

✔️ Analyzing true business needs and performance—by SBU, region, and individual;
✔️ Designing and implementing strategic change programs with operational and financial impact;
✔️ Rethinking operating models: portfolio, footprint, org structure, headcount, interfaces, and governance;
✔️ Building accountability and execution discipline—faster than internal teams often can.

🎯 The result? A leaner, sharper, performance-driven business—ready for what’s next.