Define the process

It is critical to establish efficient processes for every stage of the contract life cycle (see figure below). This includes templates, rules and workflows. These must reflect the fact that the execution and renewal phases are made up of a series of discrete tasks and events, not a continuous activity.

"Organisations will benefit it they recognize contracting as a 'process'."

IACCM

The bedrock is a clearly defined and integrated end-to-end process. This solid foundation enables activities to be repeated efficiently and accurately. Once a process is defined then people can be trained, metrics constructed, performance measured and gaps identified.

When people know what to do and have the information to do it well, then goals can be set and their performance measured in relation to the process. When performance is measured, it invariably improves.

One of the key challenges to address is that complex non-standard contracts demand flexibility in the process. For example, a standard non-disclosure agreement can be authorised by the sales department, while any deviation from that standard alters the process to include the legal department.

"Contract management should follow proven quality assurance principles: plan what you do; do what you plan; and track everything so you can show you have done what you planned."

MEMBA