Cogna

Contractor Management – A success case

With an integrated strategy, we delivered the results Cogna Educação needed to improve its contractor management processes.

Outsourcing has been a practice adopted in developed countries since the 1980s, arriving with greater strength in the Brazilian corporate landscape in the early 1990s.

Over time, outsourcing gained more ground and became a strategic practice. As a result, the contractor management market became essential. Specific analyses and practices gained visibility, broadening the operational field for outsourced services. Consequently, it also became necessary to specialize and update the strategic vision for each niche. 

The legal framework has also evolved to encompass all issues surrounding the hiring of third parties—an issue directly tied to new parameters in labor relations. Here, it is worth highlighting some features of Industry 4.0 that converge in this context.

  • Contract flexibility
  • Decentralization of work
  • Working hours
  • EHS – Environment, Health and Safety
  • Speed in data analysis
  • Process systematization
  • Virtualization and data privacy 
  • Risk Management
  • Among others

Thus, working relationships took on new forms, consequently generating new opportunities and risks. Therefore, this provides yet another reason to enhance contractor management efforts.

Following the regulation of outsourcing through Law No. 13,429/2017, demand increased—and, consequently, the need to improve processes rose as well. One of the factors the user of outsourced services must monitor, for example, is compliance with labor and social security obligations, mitigating risks of subsidiary liability and protecting the professionals involved. In other words, the more third parties there are, the greater the need for risk management and prevention. And that brings us to the Cogna case.

Cogna's Contractor Management – A Success Story

Cogna Educação is among the top 10 educational groups in the world. From basic education to higher education, through partner institutions, the holding company serves nearly 2.5 million students in Brazil.

With an operation of this scale, within the strategy to achieve objectives and exceed client expectations, we integrated stages of contractor, supplier, and risk management.

To achieve this assertively, a few fundamental steps were required. First, it was necessary to map the 950 suppliers and gain visibility during contract demobilization. Thus, we began structuring the diagnosis, ensuring the receipt of all documents during the process while contracts were still active. Another step was synthesizing KPIs for decision-making regarding critical suppliers.

Within the managed pool of 4,500 contractors, one of the challenges was integrating risk grading in accordance with a global initiative guideline. The next step, equally challenging, will be implementing EHS – Environment, Health and Safety, focusing on occupational health and safety. 

Grounded in the client's historical data and market benchmarks, we achieved the client's objective, meeting all expectations.

Actions such as internal procedures, awareness training for leadership roles, and periodic monitoring are key management measures to reduce risk.

Paths to sound contractor management

Within Level Group's consulting scope, once the full diagnosis is completed and action plans are mapped, we also have a specialized team to provide training and organizational development. 

Across all our company's cases, technology is leveraged as a powerful ally. Whether through educational management software or other parameters of digital transformation, technology must be a key partner within organizational development and the management system. 

In general, across all industries, it is essential to understand the requirements—namely, the volume of both suppliers and manageable third parties. Mapping the project scope and following a methodology to lead the management process assertively with a focus on results demands investment. And, like any sound investment, the return must be tangible.

A management report will certainly showcase the ROI, whether through savings from cost reductions or revenue gained through performance enhancements. Among the factors driving the contractor management model are:

  • Hiring model assessment
  • Risk assessment (risk management)
  • Process and contract analysis
  • Development of preventive actions and corrective measures
  • Execution of governance audits

Mapping methodologies can integrate, for instance, interviews and data input via digital platforms that generate indicators.

For effective contractor management, understanding daily workplace relationships and the practices to be implemented is fundamental. Contract analysis, internal policies, and procedures are also integral parts of this management, linking directly to managers and governance.

Finally, as previously noted, risk management is intrinsic to the mapping of supplier and contractor management. 

Leave a comment

Your email address will not be published. Required fields are marked with *