Contract management success is predicated on a myriad of factors. However, this one thing comes above, or before, all the rest.
How do you get other departments to take contract management seriously?
Best-in-class organizations know that getting all employees and departments on board is predicated on having an efficient, scalable contract management process. If you don’t put your best foot forward, it’s unrealistic to think others will make contract management a priority.
Consider how most employees at your company interact with contracts. Do you rely on emails, faxes, and shared network drives to manage your complex business ballet of contract management?
If so, you’re not alone. Most companies worldwide, a shocking 96%, manually manage their contracts. However, this non-linear, fragmented process kills your efficiency, like dancing with two left feet, resulting in chaotic confusion, like not knowing which is the latest or correct contract version to edit.
It’s simple. You can’t successfully manage your contracts if you can’t find them. And, it’s hard to become strategic when you’re reactive, without any visibility into exactly how many contracts you have, and in what stage (i.e. unaware of renewal dates) they’re in. Instead of being proactive and in control, messy contract organization forces you into manual work and risks errors..
Aside from manual processes, another common contract organization error is assuming contract management is something that only happens post-signature. It’s imperative to focus on the entire contract lifecycle for effective organization–from negotiation to signature to storage. Trying to maintain effective, efficient contract management without the foundation of effective organization is like rearranging the deck chairs on the Titanic.
A helpful metaphor is genetics. Think for a minute about DNA. DNA sequencing is the process of determining the sequence of nucleotide bases (the basic structural unit of DNA—A’s, Ts, Cs, and Gs) in a piece of your DNA. That DNA code—the combination of arrangements of those A, T, C, and G bases—decides whether your eyes are blue or brown, if your hair is red, if you have freckles, or are predisposed to getting cancer.
Contracts do the same for your business – they are your business’ DNA. Verbal and written, contracts drive the relationships that build your business. And much like DNA, the way contracts are treated and nurtured determines the health of the whole. Consider that without contracts, there’s no revenue, no customers, no you. How you organize them can make the difference between growth and success, or failure.
So, back to the question at hand, how to get other departments to take contract management seriously? Show them how much it can do for them, like reduce sales cycles, increase deal sizes, drive growth into new markets. Show them how contract management mitigates risk and builds the relationships that build your business. The first step to being successful with this is getting familiar with top-quality contract management. To help you with this, Concord created a brand new, must-have guide for successful contract organization.
To start getting the most out of your contract management, download the full guide below.
The Essential Guide to Organizing Your Contracts for Maximum Efficiency and becoming an internal revenue leader gives you the critical best practices that will help you leverage your contracts to reduce costs, improve efficiency, and increase revenue. This guide teaches you best practices that put you in the strategic, business-enabling driver’s seat.
Let’s get started.