Managing tasks and responsibilities associated with tens of thousands – if not more – contracts is, by nature, painstaking work due to complexities within contracts, coordination that must exist between teams and external parties, and a host of other factors. According to research, 78 percent of contract managers say they are under increased pressure to reduce contract-related costs. Additionally, contract managers must often contend with contract inconsistencies, a cumbersome contract management lifecycle, slow business processes, and other risks.

In 2016, a report released by Deloitte Insight struck fear in the hearts of many legal professionals when it predicted that nearly 40% of jobs in the legal sector could be automated (and therefore, eliminated) within the next decade. In raw numbers, Deloitte essentially put over 100,000 lawyers, paralegals, and legal assistants on the chopping block, citing the “profound reforms” within the profession over the next ten years.

Healthcare organizations are often tasked with the management of millions of contracts, including agreements between patients, physicians, and IT and other departments within their organizations. Additionally, healthcare providers also often have contracts that involve third parties, including insurers, medical equipment vendors, and other healthcare providers. What’s more, while managing a contract portfolio of this size is a gargantuan task in any sector, contract management within the healthcare industry poses unique challenges due to compliance requirements related to the highly sensitive nature of personal information contained within some types of agreements.

Historically, legal professionals are infamously slow to adopt new technologies. The entire practice of law is steeped in tradition and ritual, from judges’ long robes to the shelves of arcane books lining lawyers’ office walls.

With contract portfolios for large companies extending into the tens and even hundreds of thousands of documents, effective contract administration is predicated on an organized, proactive approach. But even if your contract administration process seems to be working reasonably well, putting some thought into how to further optimize it further can reap significant benefits: according to the International Association of Contract and Commercial Management, more effective contract management processes can help companies grow profitability by nearly 10 percent annually.

Contract managers play a vital role in countless corporate functions. More than just the vanguards of company contracts, contract managers must often work across teams and business lines to draft and negotiate agreements, monitor and evaluate contract performance, and keep track of crucial milestones and countless other functions.

Technology is transforming broad aspects of business operations, and the area of contract management is no exception. Artificial intelligence or AI, where computers utilize data to help organizations make more efficient and informed decisions, is one such area. For example, AI has the potential to improve the speed and effectiveness of contract drafting by analyzing past contracts and identifying useful clauses and terms applicable to new contracts.

In a recent survey, 92 percent of federal contracting professionals agreed that effective contract management is vital to their organization’s success. At the same time, 40 percent reported that their organization’s contract management policies are either not consistently applied, not documented or are nonexistent. Six in 10 respondents also reported using Microsoft Excel to manage contracts – a manual solution that lacks vital features for improving the security and efficiency of contract management.

A detailed contract administration plan or (CAP) can help to maximize the chances of a successful contract and reduce friction and disagreements from the start. 

That's why we have created this guide to help you determine exactly what items to include in your CAP and how to discuss them at a contract kick-off meeting. Specifically, the guide reviews:

• What you should review in your CAP
• How to set up a contract kick-off meeting
• Steps to take following the kick-off meeting

In today's business landscape, one of the only constants is change. Organizations constantly need to adapt and evolve in order to respond to new market trends and customer demands.