Contracts may not be glamorous but they’re the backbone of any business, and if not managed well can quickly transform into a nightmare of missed deadlines, litigation headaches and lost revenue. That’s where a killer contract management team comes in. Think of each team member as a superhero of your business agreements, protecting you from risk and unlocking hidden value. This guide will walk you through how to build a team that not only manages your contracts but crushes it.
Why bother with a dedicated team?
A dedicated contract management team brings the clear vision and expert navigation needed, offering some seriously valuable perks.
Proactive contract review and management nip potential legal and financial risks in the bud. Think of it as taking preventative medication that combats the sicknesses of unwanted, costly and painful surprises down the road.
Effective contract management isn’t all about not making losses; rather, it’s an opportunity to find money. Your team can identify areas of cost savings, such as better deal negotiation and avoiding those sneaky auto-renewals for services you no longer need.
Streamlined processes and a central contract repository mean less time wasted searching for documents and more time for strategic work. It’s like going from snail mail to instant messaging – a total game-changer.
Keeping up with regulations can feel like a full-time job in itself. Your dedicated team becomes your compliance champions, virtually ensuring you’re always on the right side of the law and avoiding hefty penalties.
Effective contract management gives you data-driven insights into your business performance. This information is pure gold, helping you make smarter decisions and gain a real competitive edge.
Who’s who on your contract management dream team?
The size and structure of your team will depend on your company’s unique needs. However, to get you started, here are the key players you’ll likely need:
- The Captain (Contract Manager/Director): This is your team’s leader, setting the strategy, managing the team, and making sure everyone’s working together seamlessly. They’re the ‘big-picture’ thinkers, focusing on vendor relationships and compliance.
- The Engine (Contract Administrator): This resource has responsibility for the daily operations of contract management. Think drafting, reviewing, organising and tracking all those critical documents. It’s the contract administrators who keep the trains of contract lifecycle management running on time.
- The Specialist (Contract Specialist/Analyst): Experts in selected areas like negotiation, risk assessment or compliance. These resources bring specialised knowledge that ensures no detail is spared to the table.
- The Legal Expert (Legal Counsel): Your legal counsel will ensure that your contracts are tight and follow all the rules. They’re your trusted advisors, keeping you out of hot water.
- The Support System (Paralegal/Legal Assistant): These unsung heroes do the research, prep the documents, and perform many other tasks needed to keep the legal counsel working correctly.
There’s no ‘one size fits all’ approach to contract lifecycle management. Here’s a few common structures to consider:
- The Central Hub (Centralised Model): One team manages all the contracts across your company. Think efficiency, standardisation, and a central knowledge base. The potential downside? This model can become a bottleneck if your organisation is massive.
- The Independent Squads (Decentralised Model): Each department or business unit runs contracts independently. This model offers flexibility and proximity to particular needs. Of course, there can be a risk of inconsistency and a whole lot of mistakes.
- The Best of Both Worlds (Hybrid Model): A centralised team provides guidance and support, but the contract runs independently at the departmental levels. This model balances standardisation and flexibility for specialised knowledge. Communication here should be crystal clear.
Turn your team Into a powerhouse
It’s important that everyone understands their responsibilities. Well-defined roles avoid confusion and ensure nothing slips through the cracks. Additionally, consistency is key to process efficiency. Document clear guidelines at every stage of the contract life cycle. To this effect, contract management software has proved to be a game-changer. It automates processes, increases visibility and makes collaboration seamless.
Training and developing your team members is key. Keep your team current and abreast of best practices and industry trends. Similarly, open collaboration and communication are essential for internal, intra-departmental and external communications.
Track contract management KPIs (key performance metrics), such as contract cycle time and average contract value, to assess your team’s performance and identify potential areas for improvement.
Key takeaway
Building a successful contract management team means building not just positions but well-oiled machines that protect your business, unlock value, and drive strategic growth. Create your first untouchable team by paying attention to clear roles, efficient processes, the right technology and a culture of collaboration.
Contract Insight – contract management software from Four
If you want to learn more about how automated contract management can help streamline your business processes why not book a free demo of Contract Insight – award-winning and widely acclaimed contract management software from Four. It’s free and risk-free, so what are you waiting for?
Contact John O’Brien, CEO at Four Business Solutions – global business consultants and software integrators specialising in business process improvement.
