There are distinct differences between a contract and a strategic initiative. First, a contract is an agreement that is legally binding between two or more parties, while a strategic initiative in an organizational tool that helps in achievement of organizational goals. Strategic initiatives are seen as means over which an organizational vision is transformed into practice. Therefore whatever is written down in a contract can only be achieved with the use of strategic initiative skills. Contracts have to be signed by the concerned parties in the case of written contracts, and commitments of fulfillments agreed upon, while a strategic initiative is written down by members of the organization without signing (Nijssen, 2014). ).
It is important to add that contracts are only written once, and signed for security and accountability reasons, while strategic initiatives are mostly written and reviewed on a monthly basis by the leadership team so as to ascertain the performances of the organization. This shows that contractual performances cannot be evaluated without the use of strategic initiatives. The other difference is that contracts are regulated by the laws of the given region, and any violations like the invalid contracts can lead to legal problems.
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Strategic initiatives on the other hand have no restrictions whatsoever, and members of an organization can create and abolish initiatives at their own will, as long the desired organizational objectives and goals are achieved. This means that contracts have standard regulations that have to be adhered to by all the parties signing it, while strategic initiatives despite of having standard templates, the leaders can choose what to include and exclude. Strategic initiatives are therefore more flexible in terms of its usability compared to contracts.