HowGCscanthrivenotjustsurvive

Introduc5on

Thetop5challengessurroundingcontractmanagement

5pathwaysforsuccess

Thebenefitsofgoodcontractmanagement

Thefutureofcontractmanagement

Whatwe’llcovertoday

Introduc5onNewtechnologyisrapidlydrivingthedigi5za5onofcontracts,andtheneedtosearch,retrieveandanalyzedatatoextractthevaluewithinthosecontractsisfosteringsignificantchangewhenitcomestocontractlifecyclemanagement.

Ascontractmanagementgoesfrom'luxuryitem'to'musthave’,weexaminethechallengesandsolu5onsfacingorganiza5onsembarkingonacontractmanagementlifecyclestrategy.

ofallbusiness-to-businesstransac5onsaregovernedbysomeformofwriKenagreement.Ins5tuteforSupplyManagement

60-80%

Top5challengesThe5greatestchallengessurroundingcontractmanagement

Volumeofinforma2onFormanyorganiza5ons,contractsarescaKeredthroughoutthebusinessonharddrives,centralserversandfilingcabinets.Orinmanycases,thedetailsofanypar5cularcommercialcontract’stermsarelodgedinthememoryofthelawyerswhoworkedonthetransac5onandnotwithintheorganiza5on.

Managingrisk(regula2on,complianceandli2ga2on)Astheregulatorylandscapeevolves,sodoestheneedforsophis5catedmethodstostaycompliant.Reportsof'compliancefa5gue'areemergingasbusinessesfailtokeepupwithchangesinregula5on.

Resources(humanandtechnical)Thegrowingneedtomanageriskmoreclosely,provideday-to-daylegalexper5seandfirefightanyexis5ngdisputes,aswellasprovidevaluebacktothebusiness,meansGeneralCounselsarestretchedtotheirlimits.

Top5challengesThe5greatestchallengessurroundingcontractmanagement

Seniormanagementandcross-organiza2onalsupportNodepartmentlivesinisola5on,soacollabora5veeffortbetweenlegal,procurement,salesandfinanceisrequired.Ifthesefunc5onsdonotcooperatetoachievecommonobjec5vesforcontractmanagement,anychangemaybesuperficialandineffectual.

DemonstrablevalueGCsinpar5cular,likemanyseniorfigureswithinanorganiza5on,areunderincreasingpressuretoinventnewprocessesthathelpsavemoney,andtouseinnova5vemethodstoensurebudgetsaremaximized–doingmorewithless.

Thesolu5onThefirststepinfindingasolu5ontothesecontractmanagementchallengesistoworkoutwhereyourorganiza5onsitsontheContractLifecycleMaturityModel.

Tohelpourclientsvisualizewheretheysitintheir'contractjourney',weliketousetheContractManagementMaturityModel(CMMM)asaroadmap.Weencourageyoutoviewthemodelnotasara5ngmechanism,butmoreasacon5nuousimprovementtool.

Toknowmoreaboutthemodelvisitbit.ly/exigen2nfographic

Nowyouknowwhereyourorganiza5onsits,

howdoyoureachthenextlevel?

Step1Aim,thentakeac2on

Withanunderstandingofthelevelofcontractmanagementcapabili5eswithinanorganiza5on,thenextprocessistoworkoutwhattheaimofacontractmanagementstrategyshouldbe.Thecontractteamneedstoapplytherightresources,attheright5me,todelivertheop5maloutcomeforthebusiness.

Step2Getthepriori2esstraight

LegalteamsshoulduseariskandopportunitymatrixtobreakthecontractporXoliointocontracttypes,andthenapplyaweightedscoringmethodologytoeachcategoryofrisk.Applyingariskandcompliance-basedassessmenttocontractswillavoidtheneedtodealwithallthecontractsatonceandtreatthemallthesame.

Step3Developtheinternalculture

Greaterinvestmentneedstobeplacedincrea5ngcontrac5ngcompetenciesthatworkwithinaconsistentframework.Thisframeworkneedstobecompa5blewith,andhavethecapacity,agilityandflexibilitytosupporttheoverallbusinessstrategyandopera5onalobjec5ves.

Step4Progresstheprocessandworkflow

Legalfunc5onsneedtodevelopandmaximizeabalancedandstandardizedcontractmanagementprocessbasedonestablishedbestprac5ces.Improvedprocessesandworkflowsreduceinternalcostsandincreasetheunderstandingofanorganiza5on’srevenuestreamsandsupplierspendbythelegalfunc5on.

Step5Gettechnical

Thetechnologyshould:• havethecapabilitytogatherandstorecurrentrecords(includingcontractandothertemplates)

Step5Gettechnical

Thetechnologyshould:• encompassacentralrepositorythatcan:

• provideandallowmanagementofahierarchyofuseraccess;

• provideappropriateversioncontrol;• allowinforma5onandaccesstobesharedgloballyand/oracrosscertainregions,whilecomplyingwithregulatoryrequirementsandprivacyconcerns;and

• besupportedeasilybyITstaffandideallybea'plug-and-play'solu5on.

Thebenefitsof

goodcontractmanagement

YourcontractporXolio,ratherthanbeingariskorliability,isinfactavaluableasset.Whendeployinganeffec5vecontractmanagementstrategy,anumberofbenefitsaccrue.

Financialandvaluegains

Reducedrisk

Improvedcommercialdataanaly5cs

BeKerdeploymentofresources

$ +

!

+

Whatisthefutureofcontractmanagement?

ThefutureVisionarycompaniesarealreadylookingtoinvestmoreincomprehensiveanaly5csthatincludebothlegalandcommercialdata,whichinturnshouldbecomparedacrossaporXolioofcontractswithvariousvendorsandindustrydata.

Businesseswillminimizeandeliminateproblemsby:• understandingdevia5onfromcontrac5ngforms• apprecia5ngevolvingtrendsdevelopingwithincontracts• assessingproblemareaswithincontracts

ThefutureThefirststepinthejourneytothisanaly5calandinsighXulfutureistoembarkonacontractmanagementstrategythatempowersacontractteamorlegalfunc5ontoputadefinedstrategyinplace,andhaveapplicableresourcesandbest-in-classprocessesandsystemsatitsdisposal.

DOWNLOADTHEWHITEPAPER

Astheeconomicandbusinesslandscapescon5nuetobeuncertain,theneedformoreobjec5vedecision-making,basedonanalysisandfacts,willincreaseexponen5ally,reinforcedbythecomplexityofcontracts,theincreaseinli5ga5onanddisputes,andtheneedtomanageriskmoreeffec5vely.

Findasolu5ontothesecontractmanagementchallengesinourwhitepaper,HowGCscanthrive,notjustsurvive.

Aboutus

Today’sbuyersoflegalservicesdemandalterna5vemodelsmatchedbyarangeofvalueproposi5onsthroughtechnologythatiseasytounderstand,adaptableandsupportedbyhumanintelligence.Theseareexci5ng5mesinthelegalindustry.Exigentpridesitselfonprovidingtherightsolu5onthatdeliverstangibleresults.

ContactusPhone:+44(0)2075789350(UK)|+18478098181(USA)|+61423937950(AUS)

Web:www.exigent-group.com/contact-us