All companies must grow. It’s an imperative that drives companies to create new products and services, enter new regions, and move into new businesses. As they expand, they inevitably become more complex. Their organizational structures develop layers upon layers, their reporting lines become tangled, and their people – from senior management through to the front line – find it harder to get work done. When time, energy, and resources are spent on activities and interactions that don’t create value, complexity starts to damage a company’s performance. But complexity isn’t always a bad thing.
The objective of project management is to produce a complete project which complies with the client’s objectives. In many cases the objective of project management is also to shape or reform the client’s brief to feasibly address the client’s objectives. Once the client’s objectives are clearly established, they should influence all decisions made by other people involved in the project – for example project managers, designers, contractors and sub-contractors. Ill-defined or too tightly prescribed project management objectives are detrimental to decision making.
Common commercial contracts include employment letters, sales invoices, purchase orders, and utility contracts. Complex contracts are often necessary for construction projects, goods or services that are highly regulated, goods or services with detailed technical specifications, intellectual property (IP) agreements, outsourcing and international trade. Most larger contracts require the effective use of contract management software to aid administration among multiple parties.
A study has found that for “42% of enterprises… the top driver for improvements in the management of contracts is the pressure to better assess and mitigate risks” and additionally, “nearly 65% of enterprises report that contract lifecycle management (CLM) has improved exposure to financial and legal risk.”
Passive management is a set-it-and-forget-it long-term strategy. It may involve investing in one or more exchange-traded (ETF) index funds. This is commonly referred to as indexing or index investing. Those who build Indexed portfolios may use modern portfolio theory (MPT) to help optimize the mix. Active management involves attempting to beat the performance of an index by actively buying and selling individual stocks and other assets. Closed-end funds are generally actively managed. Active managers may use any of a wide range of quantitative or qualitative models to aid in their evaluations of potential investments.