Measuring contract performance is critical to managing a company’s contract portfolio. Before you know what to fix, you first need to know what’s broken. When it comes to finding the profit potential in your contracts, you must begin by understanding what contracts you have, their status, and their potential costs and revenue opportunity. As a result, the contract management team must have clear metrics by which to measure performance.
The Importance of Metrics
The best way to assess the value in your contracts involves using specific metrics to measure performance and risk. Metrics will also allow you to reframe your organization’s perspective when it comes to contracts by using data to establish the opportunities existing in your contract repository.
Data Tells a Story
Data lets you and your team tell a better story regarding the potential of your contract repository and allows you to establish why an improved contract management strategy can help you retrieve that value. Finally, having greater control over your data helps you make strategic decisions to improve operations and streamline workflows for better efficiency and quicker response times.
Gain Greater Command and Control of Information & Data
You cannot manage what you cannot measure: implement a comprehensive contract management system, or at the very least a contract management system. Use metrics to report on workload and quantifiable achievements. Collect and report these performance indicators as proof of your value. Finally, set up procedures to better collaborate with your team so you can better understand, streamline and improve your recurring work processes.
What Are Your Data Failures?
Unlocking the profit potential of your legal department is not a one-size-fits-all challenge - each team faces its own set of challenges. Switching to automation and streamlined operations doesn’t have to be overwhelming or expensive, there are systems preconfigured to meet many different needs. The first step involves identifying the gaps in knowledge - what are you failing to track and manage? Once you know what’s being missed, you can find a solution - or set of solutions - that can best fit your needs.
Ready to learn more about optimizing your contract repository’s profit potential? Download your complimentary copy of our latest ebook, Unlocking the Value in Your Contracts and learn how you can turn your contracts into a profit center for our organization.