The Contract Management System of your company decides the future not only of one contract but of multiple contracts that follow. For companies seeking to maximize shareholder value, contract management holds significant potential.
World Commerce & Contracting research highlights a worrying 9% average annual revenue loss attributable to inefficient contracting practices. Implementing strong contract governance practices can unlock cost savings of 30% to 50%, forge long-term partnerships with contractors, and optimize project execution, delivering improved on-time delivery and reduced costs.
Teams focused on driving shareholder value can leverage the best practices presented in this article to streamline contracting processes and enhance financial performance. Keep reading!
Well Contract management makes sure deals run smoothly by managing all the documentation and commitments, from start to finish. It helps businesses, suppliers, and even employees all get what they expected - and that means everyone makes money!
At its core, contract management runs through the lifecycle of agreements, from the initial drafting and negotiation to the final termination or renewal. It's a meticulous process, demanding a skilled eye to ratify the clauses, terms, and conditions that bind parties together. A contract manager dons the dual mantle of translator and protector, deciphering legal jargon for stakeholders and safeguarding their interests through meticulous record-keeping and proactive risk management.
Doesn’t sound easy right?
However, there are ways of making this process less straining and even more efficient! Lets explore:
Centralized and standardized agreements are the cornerstones of efficient contract management. Pre-approved language and templates expedite creation, empowering non-legal teams to handle routine contracts. This frees up legal resources for strategic initiatives while ensuring consistency and quality across all agreements.
Securely store contracts in a central, searchable repository. This eliminates frantic paper chases and provides robust data protection. Advanced legal record management reveals crucial details like acceptance, versioning, and timestamps, safeguarding your organization during litigation and demonstrating meticulous oversight.
Transform legal from a reactive function to a proactive revenue catalyst. Establish key performance indicators (KPIs) aligned with your goals, such as reduced contract turnaround time or improved compliance rates. Leverage a robust contract management solution to track these metrics, providing data-driven insights for continuous improvement.
Don't let obligations get lost in the paperwork labyrinth. Make contracts readily accessible across your organization to ensure consistent fulfillment. Eliminate dependency on individual memory and empower responsible parties with automated reminder systems built into robust contract management software.
Shatter departmental silos and foster inter-departmental cooperation. Responsible teams should actively share knowledge and resources, empowering other teams with standardized templates and workflows. Utilize secure contract management tools, like PACT by Optimizory, to streamline internal approvals and expedite deal closure without compromising legal oversight.
Relegate email ping-pong to the annals of inefficient communication. Embrace a contract lifecycle management (CLM) platform like PACT by Optimizory. This central hub tracks all contract activity and automates communication with real-time notifications, ensuring everyone remains informed and engaged throughout the lifecycle.
By implementing these professional best practices, you can transform your contract management system from a cumbersome paperweight into a dynamic ecosystem of efficiency, security, and collaboration. Remember, mastered contracts equal empowered teams, streamlined operations, and ultimately, a flourishing bottom line.
PACT, a new revolution for the teams messing over contracts integrates seamlessly with Jira, a project management software for teams.
Transform Jira into a contract powerhouse with Pact! This seamless integration leverages your existing Jira interface and features for:
PACT isn't just a tool, it's a game-changer. Supercharge your contract management with PACT and embrace the power of Jira, redefined.