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Saturday, May 25, 2024

How to Improve Contract Management

Efficiently running a business relies on having the right contract management process in place. Yet it is surprising just how many companies are using several systems, processes, staff and departments for this. Without using a streamlined process for contract management, many problems can occur. Such as missed deadlines, expired contracts and liabilities which can severely damage your business, not to mention its future success. Ultimately, if you feel your contract management process could do with an overhaul, take a look at our suggestions.

Top Five Ways to Improve Your Current Contract Management Process

  1. Review Current Processes, Then Set Realistic Goals. The fact that something isn’t working for you could be the reason you seek improvements in your contract management process. Begin by investigating how things presently being done, then work out what works, and what doesn’t. Understanding this will give you a clear plan of how to improve things and will make it easier for you to set goals. The outcome? Saved money, lower risk, and better visibility of contracts.
  2. Standardize Your Processes Using Templates. There are many advantages to making this change. As well as making the contracting process more streamlined and consistent, risk will become minimized; savings will be achieved in terms of time and money as less intervention needs to be made by legal teams. The use of templates will better help both parties fully understand their obligations, making use of more straightforward language that everyone will understand, not only from the client’s perspective but also from various departments in your organization. Use contract management software to develop new templates.
  3. Streamline Your Workflow With Automation. Keeping track of everything within contract management can be complicated. From the tracking to master agreements or service agreements, production schedules, and non-disclosure agreements to managing contractor statements of work, supplier contracts, or other legal documents, it is fast-paced, and there’s always something to do. Unorganized processes make it impossible to keep on top of everything. Instead, store everything in one central place where it can easily be accessed and viewed when necessary. Contract management software allows you to keep organized in a process that saves time and produces fewer mistakes while maintaining minimal costs. Ultimately, by identifying future risks, they can be rectified and prevented before they develop into more severe issues.
  4. Consider Using a Contract Management Consultant. There are many advantages to hiring a contract management consultant. They will guide and assist you through the entire contract management process, providing recommendations to streamline operations, helping you not only comply better but save money as well. Consultants will analyze your requirements and identify risks while creating new processes that fit the unique nature of your company. They may also recommend that you use contract lifecycle software if you don’t currently have this available in your organization.
  5. Assign a Team Member for Continual Review of Processes. Contract management moves at a fast pace, so to stay ahead of your competition, you need to keep up. Consider assigning a member of your team to review contract management processes regularly. They can identify what works and what doesn’t, as well as identify risks and make changes towards better results.

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