It’s not uncommon for contract management to be approached as a top-heavy proposition. This means that organizations invest a great deal up front in preparing to enter contract negotiations, planning optimal positioning, authoring and negotiating contract details and, finally, getting the document signed. But once the ink has dried – whether literally or, given the increasing availability of e-signature tools, figuratively – it’s not uncommon for contracts to be stored away in filing cabinets or on shared drives, and not referred to again until it’s either time to renew or problems arise.
If your organization’s approach to contract management is sign it and forget it, there’s a good chance you aren’t reaping the full benefit of those agreements you’ve invested so much time and effort to negotiate. Research from the International Association of Contract and Commercial Management (IACCM) found that as many as 40 percent of contracts don’t deliver the financial benefits that were intended. If you’re among those who believe their contracts have underperformed, financially or otherwise, it may be that taking this top-heavy approach is the reason why.Read More