There seems to be a dichotomy in management circles these days when it comes to allocating resources and responsibilities. On the one hand, there is increasing emphasis on the importance of communication and collaboration. But, on the other hand, there is almost equal emphasis on efficient delegation, even outsourcing in some cases for the sake of productivity. For some managers, it is difficult to reconcile these apparently opposing approaches. However, there is no reason that one approach must occur to the exclusion of the other. Here are several reasons that both collaboration and delegation are crucial components to any successful contract management process.Read More
For many companies, the team that negotiates a contract is different from the team that drafts the arrangement. Of course, a completely different team then oversees the management of the finalized agreement. This is an understandable and efficient allocation of human capital, but a complete division of labor is often one of the underlying reasons that contractual relationships go sour and contract disputes arise.
Although it may not be realistic for the management team to actively participate during all phases of the contracting cycle, they should become engaged in the process as early as possible because their insight will help prevent the emergence of certain issues. Here is how their early engagement and input can help:
Even the most perfectly drafted contracts sometimes become contested nightmares, as performance breakdowns and compliance issues are never completely avoidable. However, the manner in which any such disputes are decided varies, usually depending on the scope of the issues at stake and the severity of the alleged breach. In addition, many contracts directly stipulate how certain matters will be decided, such as mandated arbitration or a requirement to seek mediation before resorting to the court system. It is important for everyone involved in contracting to understand these potential mechanisms for redress, so here is a brief overview.Read More
A lot of contracts, if not most, formalize arm's length transactions, essentially implying there is a distant or strictly professional relationship between the parties. In general, these types of contracts are run of the mill, standard form agreements. Even parties who have contracted with each other for years tend to rely on standard contracts.Read More
CFOs have a lot on their plate. And, contrary to the second word in their official title, they do not just oversee a company's finances. The dynamic nature of business requires leaders in any capacity to understand and make decisions regarding various matters. Fortunately, there are business solutions available that can make the life of a CFO a lot less stressful. Here is why contract management software (CMS) will help CFOs sleep a bit better at night:Read More
The only way to ensure that your company is operating efficiently is to establish clear goals, along with key performance indicators (KPIs) to determine whether those goals are being met. This is true regardless of which facet of the business you are seeking to manage. With respect to contract management, it may be difficult to identify which KPIs make the most sense to monitor because contracts vary so much from one situation to the next.
Broadly speaking, however, the best KPIs for contract management are ones that are "SMART," meaning they are specific, measurable, achievable, results-oriented, and time-constrained. Thus, irrespective of the type of contracts your company is managing, here are some of the most important KPIs:
As many folks know, a big part of an in-house attorney’s day involves reviewing contracts, discussing contracts, drafting contracts, and reviewing contracts some more. It does not matter what size the company is, what sector it is in, or what product it is providing, contracts are unavoidable. Contracts are actually anxiety-inducing for a lot of people because of the potential impact they can have on the business, especially the company bank account. For attorneys, contracting is a pretty standard practice, but we have heard that it presents its fair share of challenges for them as well. Here is a rundown on some of the biggest issues in-house counsel encounters when it comes to company contracts:Read More
Contract management requires quick thinking and a keen attention to detail. As a result, it is crucial that a company's contracts are drafted well. Here are some things to consider when drafting contracts to ensure that the final agreements are actually manageable.Read More
Once your company has made the decision to invest in contract management software, it may be overwhelming trying to figure out which service to select. Many services likely appear identical on the surface, but the fine print will no doubt paint quite a different picture. When choosing a contract management solution, here are five things the service must have:
For quite some time, negotiating and drafting contracts and the ensuing management of those agreements was a complicated (albeit primarily administrative) process. Different people within a company handled different steps in the contracting process, and communication among those members was usually less than ideal. As a result, contract disputes became all too common and companies spent a fortune on enforcing, litigating, and rectifying contract breaches.Read More