How to create an effective contract management process

1) Define your objectives and requirements

• Engage stakeholders: identify the individuals within the organisation responsible for contract management and their distinct needs.
• Establish concrete objectives: formulate clear and quantifiable goals for your contract management process.
• Record requirements: document the precise requirements and criteria that contracts must adhere to.

2) Adopt a contract management software

Contemporary contract management often implies software solutions such as Legisway to optimise each stage of contract management, including initiation, renewal, or termination.

By streamlining processes, these platforms can result in significant time and cost savings, with studies by the International Association for Contract & Commercial Management (IACCM) indicating a potential 9.2% improvement in annual revenue. 

Additionally, they provide features such as document storage, automated notifications, and reporting capabilities, which contribute to enhanced compliance.

Organizations with automated contract management have experienced a 73% higher contract compliance rate, according to a report by the Aberdeen Group. Thus, incorporating contract management software can considerably enhance the efficacy and productivity of your contract management procedures.

 

3) Develop standardised templates and workflows

Implementing standardised templates and workflows promotes uniformity and efficiency in contract generation and administration. This approach mitigates the possibility of inaccuracies and saves time by offering a structured methodology for contract management.

The development of standardised templates and workflows entails:

• Template development: formulate templates for various contract types used by your organisation.
• Workflow design: establish coherent workflows for contract initiation, review, approval, and execution.
• Education: ensure that your team is well-versed in the effective utilisation of these templates and workflows.

 4) Set up clear roles and responsibilities

• Role allocation: assign personnel to handle each stage of the contract management process.
• Responsibility specification: clearly delineate the responsibilities and tasks associated with each role.
• Communication: ensure that team members understand their roles and communicate effectively throughout the process.

Developing an efficient contract management process is essential for organizations to skillfully navigate contractual complexities and strengthen compliance, mitigate risks, and improve overall business operations.

Ready to build your effective contract management process?
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​Start by identifying your objectives and requirements, assessing the adoption of contract management software, designing standardized templates and workflows, and establishing clear roles and responsibilities.

With a strong foundation in place, your organisation can optimise contract management for long-term success.