Contract Management

  • Contract management increases financial value
You must explain the financial benefits of contract management. Otherwise, contract management looks like expensive busywork. Arguments based on abstract ideas like “compliance is important” or “maintaining the contracting process is important” are too abstract when it comes to a specific number as line item in a budget.
  • Contract management “moves the needle”
When it comes to allocating budgets across the organization, executives hear demands from every quarter. It is rare for a manager to volunteer for a smaller budget or less staff. How do executives respond to conflicting demands for limited budgetary resources? Business leaders want to make investments that “move the needle” (a budget after all is just a capital allocation).
  • Contract managing controls risk in the contract portfolio
Risk is about uncertainty. If we cannot produce data like the following, then we probably have an unacceptable level of risk in our contract portfolio:
Number of contracts with indemnification clauses
Number of contracts with insurance obligations
Percentage of expense contracts with auto-renewal provisions
Number of contracts with unilateral termination provisions.
Number of expired contracts
Spreadsheets are not secure
Still Using Spreadsheets? Risks that may occur when using spreadsheets to track your contracts
Spreadsheets can be easily accessed and shared with anyone might end up in the hands of unauthorized personnel who may have malicious Some might even stretch boundaries and use it for other purposes… But what are the risks if we use spreadsheets for contract management?
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