Overview

Good, bad, and ugly practices in contract management can be summarized as follows:

The Good

• Centralized and Standardized Agreements: Centralizing and standardizing agreements can speed up contract creation and make contracts easier to edit and review.
• Compliance and Audit Preparation: Effective contract management ensures compliance with contract terms and improves audit preparation by maintaining accurate contract history and providing a centralized portal with audit trails.
• Improved Collaboration and Accountability: A well-established contract management system promotes better collaboration between various departments involved in the process, leading to improved accountability and reduced misunderstandings.
• Cost Savings: Effective contract management helps in minimizing costs by streamlining and automating the creation and maintenance of contracts, resulting in better cost control, higher productivity, and fewer errors.

The Bad

• Lack of Standardization: Using outdated templates and making basic metadata changes before signing off can lead to major risks down the line.
• Inadequate Compliance Monitoring: Failing to actively monitor compliance with contract terms can lead to risks and disputes.
• Manual Processes: Relying on manual contract administration procedures can result in lost renewal opportunities and increased costs.

The Ugly

• Poor Collaboration and Accountability: Lack of clear roles and responsibilities, leading to misunderstandings and poor contract performance.
• Inefficient Invoice Processing: Ineffective methods of processing invoices can lead to delays and errors in payment administration
• Today’s contract management function needs to ensure the Good is maximized, and the Bad and Ugly are eliminated.  Proven practices exist which enable the contract management team to succeed in this journey!
  

Why you should Attend

Global research has repeatedly demonstrated that ineffective contract management can result in lost value, exposed risk, and strained commercial relationships.  These conditions result in more than 9% profit loss for those firms with ineffective contract management.  This represents an opportunity for those who undertake fundamental changes in their contract management discipline.  To start one’s pursuit of leading practices in contract management, one must first assess the current state – and where there are good, bad, and ugly practices in contract management.
This session will focus on a dozen practices which, if performed well, can drive greater results in contract management – and eventually generate greater profits for both the firm as well as their commercial partner.  

During the session, the audience will develop an understanding of contract management and its importance.  Areas of focus will include:

• Cost Leadership: Contract management enables cost controls, ensure timely and accurate payments, and improve profits - leading to superior financial outcomes.
• Risk Mitigation: It helps mitigate, rather than merely allocate, risk by ensuring compliance with contractual terms - minimizing financial, regulatory, legal, and reputational risks.
• Efficiency Improvement: By improving the contract management process, and reducing the resources spent on contract administration tasks, contract management improves operational efficiency – for both commercial partners
• Collaboration and Visibility: It allows for collaboration and innovation through contracts, increases visibility into the contract process, and ensures that all parties have access to the same information – building trust and reducing
• uncertainty and ambiguity.
  Compliance and Governance: Effective contract management ensures compliance with agreements, which is crucial for maintaining a strong reputation – helping avoid contractual liabilities and damages
  

Contract management has become a vital function for successful firms as it enables cost control, risk mitigation, efficiency improvements, and contractual compliance.  Understanding which practices are good, bad, or ugly will enable the attendee to focus on doing the right things, the right way in contract management.

Areas Covered in the Session

Introduction to the Good, Bad, and Ugly practices in contract management

A dozen practices that make a difference, including:

• Establishing clear requirements and specifications
• Forming an effective cross-functional contracting team
• And ten more!
• Developing the skills and talent needed to implement
  

Who Will Benefit

Directors, Managers, and Practitioners in a wide array of functions, including: 

• Financial management/Investment management
• Legal/regulatory management
• Commercial management (both buy- and sell-side)
• Project management
• Operations/engineering management
• Logistics/transportation management
• Contract management
• Risk management
• Third-party risk management
• People management
• Procurement/category management
• Supply chain management
• Change management
• Communication management
• Technology management