By design contracts are meant to reduce risk and maximize financial opportunity for your business. However, according to the International Association for Contract and Commercial Management (IACCM) nearly 40 percent of contracts don’t deliver the financial benefits they were intended to. Which draws the conclusion that many organizations are attempting to operate with a broken contract management process.
Your legal team is likely tasked with designing contracts for use by various departments such as; procurement, sales, or human resources. And, while your department is without a doubt the best team to craft agreements that clearly set out terms for compliance and mitigate risk, it's critical that the all agreements also take into account the real-world applications of their terms and contingencies. Herein lies one of the fundamental issues causing failing contract management: organizational contract consistency and application.
Successful contract management requires the legal team to lead effective interdepartmental communication, and develop a laser-focused contract management plan that will support your organization's business goals. For many teams this may feel like an impossible feat, but it is one that must be achieved in order to fix a broken process.
How do you go about fixing a broken contract management process? In a webinar ContractWorks discusses the overarching business impact of contract management processes. During the presentation the presenters review how failing contract management can negatively impact revenue, cost, compliance, as well as organizational productivity, and gives guidance on:
- How to categorize what isn’t working
- Quantifying business impact of process failure
- How to prioritize what to fix
For a full overview of these issues and information on how to repair them watch the webinar “How to Avoid the Pitfalls of Failing Contract Management.” You’ll learn how to improve your contracting process, and according to IACCM potentially improve your organization's bottom line by 10 percent by implementing an effective contract management process.