4 KEY QUESTIONS FOR IMPLEMENTING CONTRACT MANAGEMENT SOFTWARE
What contracts are you responsible for?
Contract management software solutions are divided in 5 main categories:
Enterprise Contract Management software solutions are used for all categories, the other focus on 1 specific category. Within a specific categories, there are multiple niche ICT tools available, ie for Real Estate or IP Rights.
Do you need to manage all the contracts of the category?
You need to answer this question with an assessment on the following Key Performance Indicators:
What is the process for contract management?
The entire lifecycle of a contract include the following workflow:
- Drafting a template
- Negotiate the terms
- Approve and sign the contract
- Execute the contract
The process for each contract is owned by the Contract Owner and overviewed by the Contract Manager.
What is the benefit of ICT tools for the process?
Most contract management software only offers tools for the archiving
of documents related to one or more steps in the workflow.
To implement Contract Management you need to answer the following questions:
- Which contracts do you NEED to manage (value, type, risk, responsibility, process)?
- What is the PROCESS for the management (draft, negotiate, approve, execute, archive)?
- Is the information you require to control the process already captured in a ICT tool?