Steps for effective contract management

We all know that contracts are an inevitable part of owning a business or working with others. This is why just about every business owner will at some point have to learn how to manage their contracts with employees, vendors, customers, partners or clients. If you are finding it difficult to keep up with all of those contracts lingering around the office, here are a couple of the most basic steps you should follow in order to develop effective contract management.

Contract Management 101

Make a Plan

The better prepared you are, the higher the chances for success, which is why the very first thing you need to do in order to increase the effectiveness of your contract managing is make a plan. This plan should include your goals, your expectations and your budget as well as a list of the responsibilities categorized by department.

Train

Once you have established a contract management plan, you are going to need to train your employees on the process, terms and guidelines. If you plan to use contract management software, make sure that all of your employees are equipped with the skills they need to navigate the system.

Measure

Then, you will need to begin measuring the effectiveness of your company’s contract management. You can do this by recording any mistakes made by employees while preparing contracts, the amount of time it takes to retrieve a contract when necessary and the amount of time needed to prepare certain contracts.

Audit

You will also want to periodically audit the contract management process previously implemented in order to make sure that everything is operating properly. If you find any problems during an audit, you can then address them right away.

Managing business contracts sure can be a tedious process, but taking these steps will ensure that your contract management is effective and efficient.


Manage your Business Contract Analysis with Pipefy!

Pipefy’s Free Business Contract Analysis Template offers an easy way to run your company’s contract management process – creation, alteration, etc. Use pre-designed e-mail templates to ask for internal and external approvals and find out how Pipefy can save your time – and make your life a lot easier.

Free Business Contract Analysis Template! Free Business Contract Analysis Template!

Written by Isabelle Salemme, Product content manager at Pipefy. She uses her extensive Pipefy knowledge to write informative pieces teaching users to make the best of Pipefy. Besides being responsible for all product-related content, she's an avid reader, a coffee lover and a professional photographer.