4 Mistakes You Might Be Making with Your Contract Management Strategy
Negotiating contracts is never easy, which is why many companies choose to have a contract management system available. Although this can make the entire process much simpler when you automate your system, you might not always do it correctly and you can run into some snafus. Some of these can even come with a number of risks, such as hacks and losing valuable information.
Here are 4 mistakes you might be making with the type of contract lifecycle management you might be using and here’s how you can fix them.
1. You’re not considering contract performance
How a contract performs is not just indicated by whether or not a deal goes through. Even if you manage a successful partnership, that doesn’t mean that your contracts can’t be better. You should take a look at how many drafts you managed to go through on your way to get to the final result and whether or not you can create a better editing system in order to achieve results faster. You can save time and increase productivity by recognizing your contracts’ biggest errors.
2. You can’t recognize a contract breach
A contract breach might be one of the most difficult things to deal with when your business relies on trust with partners. If you aren’t sure whether or not one has occurred, then it might be a sign you need to manage your contracts better from the beginning. When you have taken the time to come up with an individualized deal, only to have it fall apart. This is why it is important to keep monitoring tabs on your contracts to see what changes have been made and whether or not they are appropriate for the kind of deal you are making.
3. You haven’t transitioned ownership
Most likely, the same people who are drafting your contracts are also the ones who will implement changes. When this is the case, it is more likely that things will fall through the cracks. If things aren’t handled in a systematic way, you might notices that certain aspects of a deal aren’t transitioned properly. This is why it is essential to create a formal process that works. Make sure you designate certain tasks to people who are experts, and that each employee has a clear idea of what he or she needs to accomplish.
4. You don’t turn in your contracts on time
In order for a process to move smoothly, it can be necessary for you to make sure that any deadlines are met. If you are a few days late or you miss a deadline altogether, you can run into some major problems with transitioning from one business to another when dealing with a merger or acquisition. While things might not always go perfectly, making your best effort to meet deadlines can make it easier for every area of your team.
Contract management requires a little bit of foresight and a lot of keeping track of major changes. Once you have created a functional system, though, your job is likely to become much easier.
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