Learn the importance of contract management and how to implement an effective, organized system for your business.The purpose of this topic is to provide a three step process for organizing and managing your organization's contracts. This introductory material will cover an initial three areas with which to establish a contract management (CM) system foundation which can grow with your firm. This initial session is designed for the very beginning stages of contract management - a tool to guide you through setup and institution. Once these three phases are complete, you will possess a framework that can be utilized to streamline the system and gain efficiencies and/or cost savings. Learning goals for the building blocks are: a) preparation for a basic contract management system; b) create priorities according to your needs; and c) establishing essential contract management practice leading to innovation.
Many businesses fail to adequately manage the contracts that they enter into and that can pose significant business risk with potential for disastrous consequences. Often, contracts are relegated to a filing cabinet or desk drawer with little to no oversight regarding the contents of the contractual obligations written in the agreement. The initial set up of a contract management system as outlined in this content will ensure that you are able to locate all of your contracts, understand them, manage them, and mitigate risk. Once your system is established, it is easier to operate on contract management principles and best practices while setting the stage for efficiencies, improvements, and other future benefits of operation.