EASY publishes a set of highly practical recommendations on how firms can tackle the issue of contract management tech adoption – and recover 9% extra profit.
The CEO guidance on contract lifecycle management that shows how British firms are missing out on a possible 9% of lost profits through inefficient processes in this vital function.
The report flags the fact that the global body that represents contract management professionals, The International Association for Contract and Commercial Management, or IACCM, has found that good contract development and management could improve profitability by the equivalent of 9% of annual revenue.
That body’s research also shows that over 60% of its global membership have implemented contract management software – but less than 30% have managed to get the same software to be properly internally adopted in their organisations.
In order to retrieve the profit lost to inefficiency, the report offers a series of very practical recommendations:
- Access A best practice contract management solution puts the contracts not just in the hands of those who create them, but also in the hands of the people who use them. To do this, organisations should look to create an internal template library to streamline contract creation, facilitate negotiation and automate the review and approval process
- Establish a method to handle custom agreements as these often have the highest risk and the best opportunity for reward
- Build in visibility to the contract pipeline.
- The other clear message from the report is that a modern document management system is an essential underpinning for any kind of serious attempt to rationalise a business function and as central to good contract management.
Commenting on the findings, Howard Frear, Sales and Marketing Director at EASY SOFTWARE UK, said, “The research underlines the pivotal role Document Management plays in achieving contract management efficiency.
“It also highlights how, clearly, leveraging systems, information, and the right technology is the best way to position an enterprise to deliver value from contract management – and how if you start doing all these things, that 9% potential payback is achievable.”
‘Documenting and Sharing Knowledge’
The EASY-sponsored research and guidance has been carried out by technology and contract management consultant and IACCM writer Judy Ballou.
The study including a special foreword by Tim Cummins, the President and CEO of IACCM, who states, “Perhaps if we understand that many of today’s problems have resulted from technology, we might also accept that technology use is a key piece of the solution [but] will only be effective if we focus on defining a process, deploying skills, documenting and sharing knowledge.”
The guidelines, ‘Contract Lifecycle Management: Implementing Best Practices Into Your Processes’ are available to download here:
An article on the document management community platform, thedmcollaborators, also discusses these results.