Legal Counsel, Procurement chiefs and contract managers are all feeling the pain caused by the Contract Management Problem.
The Contract Management Problem. Organisations expend a great deal of time, money, and effort, on negotiating, drafting and executing agreements every year. Once the contract is signed however, contracts are placed in the bottom drawer of a filing cabinet, and only come out when something goes wrong. By this time it is too late.
Contract Management is too often disparate and reactive, with very little accountability. So when something does go wrong, there is a lot of finger pointing and people playing the blame game.
Contract Management teams can still be disparate across your organisation, and this will depend on the nature of your business. By providing a central repository of contract information you are centralising contract data and documents, thereby providing access to information to those who need it, with delegation, and avoiding much of the data disconnect that can occur within unconnected teams.
Legal teams spend a lot of time and effort on negotiating favourable terms and conditions in your agreements, but there is a disconnect between signing the contract and the management of the delivery phase. The commercial side of the business is not managing the agreed terms effectively or holding suppliers to negotiated rates. The whole contract lifecycle needs to be managed.
Procurement teams try their best to provide useful purchasing agreements that if utilised will save the organisation money. But their strategic role is not being supported operationally by systems that give staff the ability to purchase off such agreements. Without central visibility of agreements, organisations do not reap the negotiated benefits and fall short of possible savings.
Commercial Managers cannot manage contract delivery if they are not appropriately supported by the organisation from a systems viewpoint. Without contract management system support, contract managers are only contract administrators. Systems, turn administrators back into managers and allow them to focus on the real business of contracting; people and relationships.
So organisations continue to suffer increased costs, undelivered services, loss of corporate knowledge, missed milestones, avoidable terminations and litigation, and the errors caused by multiple data entry points. - 20767
The Contract Management Problem. Organisations expend a great deal of time, money, and effort, on negotiating, drafting and executing agreements every year. Once the contract is signed however, contracts are placed in the bottom drawer of a filing cabinet, and only come out when something goes wrong. By this time it is too late.
Contract Management is too often disparate and reactive, with very little accountability. So when something does go wrong, there is a lot of finger pointing and people playing the blame game.
Contract Management teams can still be disparate across your organisation, and this will depend on the nature of your business. By providing a central repository of contract information you are centralising contract data and documents, thereby providing access to information to those who need it, with delegation, and avoiding much of the data disconnect that can occur within unconnected teams.
Legal teams spend a lot of time and effort on negotiating favourable terms and conditions in your agreements, but there is a disconnect between signing the contract and the management of the delivery phase. The commercial side of the business is not managing the agreed terms effectively or holding suppliers to negotiated rates. The whole contract lifecycle needs to be managed.
Procurement teams try their best to provide useful purchasing agreements that if utilised will save the organisation money. But their strategic role is not being supported operationally by systems that give staff the ability to purchase off such agreements. Without central visibility of agreements, organisations do not reap the negotiated benefits and fall short of possible savings.
Commercial Managers cannot manage contract delivery if they are not appropriately supported by the organisation from a systems viewpoint. Without contract management system support, contract managers are only contract administrators. Systems, turn administrators back into managers and allow them to focus on the real business of contracting; people and relationships.
So organisations continue to suffer increased costs, undelivered services, loss of corporate knowledge, missed milestones, avoidable terminations and litigation, and the errors caused by multiple data entry points. - 20767
About the Author:
Adam McInnes is Chief Executive of Open Windows Contracts the leading Asia Pacific authority on Contract Management and Contract Management Software.
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