Contracts and partnerships are an essential part of today’s high speed, multilateral business culture – both in the public and private sector. Contract Management is becoming an integral part of project management, and business in general. Many commercial and project managers are more and more facing contract management issues. One of the challenges is often how to get started with contract management. The process of preparing and launching of contract management in an organization can take years. This kind of a process should be seen as an on-going multi-step process instead of a project that can be completed in less than a year. However, contract management development is beneficial and even crucial. The good news is that after each completed sub-project contract management results in cost savings and increased profits. As contract management concept is extended to the entire organization in its’ widest and purest form it will be an essential competitive edge.
When contract management issue is in the agenda, one of the major aspects to consider is naturally the operations and processes in the organization. Thereafter it is possible to identify the key issues of contract management development in your organization. Some typical characteristics can be found in different kind of business operations and related contracts. These considerations will help you in finding the starting point and further in mapping the development path for managing related workflows and processes in contract management.
There are several very typical and easily identifiable steps related to Contract Management development within a company. The first step is simply to get the basic Contract Management operations established which would require Contract Management Software. These include such things as a centralized contract repository, appointment of person(s) responsible for each contract, a contract management handbook, company contract templates and defining required proactive alarms on the contracts. The second step is to make the contracts “alive” – in other words, be part of the business. This covers issues such as contract management process, deeper involvement of business units, use of contracts in operations such as project management, and truly active use of contract management as a business tool. Finally, the third step in the process of Contract Management System – it is the strategic step. As this level of development is reached your organization is able to evaluate entire organizations’ contract and partnership network from a strategic point of view. This final phase genuinely integrates Contract Management as a valuable tool for long-term planning, strategy formulation, and strategy implementation.
Contract Management –an effective tool in today’s business w