Contract management: control value and minimise risks
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A necessary response to the overwhelming quantity and diversified
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| An independent paper by PricewaterhouseCoopers LLP sponsored by Memba Limited | |
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"Organisations which don't
Tim Cummins, Director
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Contracts can make or break your business. They define and underpin every commercial relationship. They determine how your business is run and the level of performance it can achieve. Get your business contracts right, and you have a sound platform for profitable growth. Get them wrong, or manage them badly-and your organisation is risking not just its relationships, but its future.
The same applies whether you call them contracts, agreements, terms and conditions, warranties, projects, deals, mortgages, loans, insurance policies, intellectual property rights, licences, leases or assignments. A recent survey1 found that 70% of international corporations believed that "contract management remains a major or significant source of operational weakness"-with 60% of Global 2000 companies having launched a project to tackle the problem. These initiatives reflect the growing realisation that poorly managed contracts are underperforming contracts.
| So how does your business measure up? Today's business models are driving the number and complexity of contracts ever higher. Yet many businesses still manage the entire contracts process in a fragmented, manual and ad-hoc manner. The results are excessive risk, lost revenues and higher costs. | "Contract management is where finance was 30 years ago" Oracle |
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1 "Contract Management: An Opportunity Still Being Missed?"-The International Association of Contract & Commercial Managers (IACCM), April 2003