Unlocking the business value of your contracts with a well-defined contract management strategy

In this webinar, we understand how we can unlock the business value of your contracts with a well-defined contract management strategy.

Challenges in Contract Management

For the past 5 years, especially due to COVID-19, organizations took external help for non-critical work for which they face the following challenges:

• Multiplied the number of contracts and agreements.
• Lack of right skilled resources who understand end-to-end contract management and software usage
• Lack of usage or absence of industry-standard provisioned templates to accelerate contracting
• Lack of end-to-end view of contracting cycle

How to plan for the challenges?

• A standard way to document your organization policy in every contract
• Adherence to compliances and deliverables when you’re signing the contract.
• Set objective with the timeline for each step in the contract lifecycle
• Create an audit trail for contracting workflow and define approvals for each executed contract.

Benefits

• Cuts down internal and external disputes
• Ensures both parties remain compliant
• Helps troubleshoot any discrepancies that arise
• Demands better performance and safeguards your interests from vendors and suppliers
• Allows flexibility of renegotiation that is trackable
• Provides business insights for revenue-expense projections, the impact of renewal clauses, etc
• Organizational contracting (buy & sell) contributes to your bottom line

Key for Contract Management

“Nexdigm recommends contract management to be flexible and agile.”- Kartik Nagarajan

Flexible - for implementing the end-to-end organizational contracting process on a CLM platform

Determined by fast and easy adaptation to the technology, wherein one should be inclusive to change of management and focus on going paperless to ensure effective contract management. It also involves usage of the platform that includes using playbook, negotiation strategy, pricing, type, and entire contract administration process (both legal and closure team).

Agile - ensuring organizational collaboration

Business, legal, procurement, and sponsor - all these 4 have to come together for successful CLM implementation. Focus on 100% adoption and taking advantage of CLM.

Risk-based contracting

“Profile contracts as high, medium, and low risk for legal, compliance, monetary and operational parameters.” - Kartik Nagarajan

Risk profiling aids the effort and resource allocation of an organization as follows:

• High risk - usage of best lawyers and consultants with a focused approach for avoiding leakages.
• Medium risk - a combination of using good lawyers, 100% CLM.
• Low risk - 100% CLM usage extended towards touchless.

Defining roles and responsibilities

“One thing that is not going to work for end-to-end contract management is working in silos that leads to ambiguity and wastage of time.” - Kartik Nagarajan

• The business, legal, procurement, and sponsor need to be on the same page
• Role-based access is critical in the CLM platform
• Segregation and defining of the roles
• Using the right fit of resources for understanding the complexity of contracts

How do you optimize the execution of contracts?

SLA based contracting that includes

• Timelines at various stages of contracting
• End-to-end closure time of contracts
• Quality of executed contracts
• Satisfaction level of internal and external stakeholders

Technology-enabled KPI measurement agreed upon by stakeholders and mapped into the CLM platform

• Execution time
• Collaboration efforts
• Costs involved
• Avoidable leakages