Contract management is a critical part of any business but it has risks. More efficient processes can save companies money, compliance issues, and even tarnish reputation.
Contracts are dynamic documents containing valuable data to minimize risk.
Automate as much as possible
Effective management of contracts can significantly impact the success of your business. If it’s not done efficiently, it can slow your pace of operations, risk revenue, and tarnish your reputation.
A key component of effective contract management is automating as much of the contract process as possible. It will speed up contracting procedures, avoid bottlenecks, and lessen the possibility of mistakes.
A platform for managing contracts like Intuitive Edge offers many alluring features, including online redlining and negotiation, approval workflows, changes, and e-signatures. It will transform analog manual processes into a digital automated workflow, resulting in increased compliance, faster work, and more productive employees.
It is also crucial to centralize your contract data in a single repository. It will help you avoid losing contracts, which often occur when they are stuck in cluttered email inboxes or physical file cabinets. It also allows senior stakeholders to spend less time completing routine contract admin tasks and more on higher-value activities.
Establish clear roles and responsibilities
Contracting experts know that a clear contract management strategy is vital to handling contracts efficiently throughout their lifecycle. It includes establishing clearly defined roles and responsibilities for everyone involved. It ensures accountability and reduces confusion over who is responsible for what.
Having designated points of contact and communication channels also helps implement a transparent escalation process in case of any problems or issues. This strategy also promotes team collaboration, which is crucial for effective contract management.
It’s also a good idea to conduct a service gap analysis to evaluate your current contract management processes and identify opportunities for improvement. It is an effective way to prioritize improvements with the most significant business impact.
Centralize your contract storage
Contract management software’s centralized storage capability can make your team more efficient. It includes allowing contracts to be sorted and organized by unique characteristics such as clauses, conditions, and terms to allow for time-efficient searches across your contract portfolio.
It can be vital if you work in an organization with multiple departments or offices spread out geographically. Without a digital solution, contract information can get lost in the shuffle, making it difficult for your team to access it quickly and efficiently when needed.
In addition, a centralized repository can also reduce the risk of security breaches and document tampering, which is common in more manual contract processes. Choose software that offers security features such as role-based access control, data encryption, and more to ensure your contracts are safe from unauthorized users. It will protect you from costly data breaches and loss of contract performance statistics.
Keep track of renewals
Most contracts have an end or renewal date that can be missed, resulting in legal or reputational damage. To avoid this, set up systems to remind stakeholders when contract renewals or expiration dates are due. It’s also a good idea to initiate renewal discussions well before the renewal date, giving everyone ample time to conduct a thorough review and decide whether to renew.
Any new contract management processes or solutions you implement must work alongside your existing tech stack rather than trying to replace it. Otherwise, it will be much harder for teams to adopt them, and they won’t get the most out of them. It is crucial when it comes to new ways of working that involve collaborating in new ways with other departments or external partners. Ensure collaboration features are built into the system so everyone can communicate similarly.
