This Is Modern Contract Management

Contracts of various kinds are a central part of all businesses and organizations. Many operations have hundreds—yes, even thousands—of contracts, and there is a lot of time and money to be saved by managing them correctly. It’s easier than you might think, and in this article, you’ll receive advice and tips that lay the foundation for successful contract management.

You Need a Strategy for Contract Management

Everything from small businesses to large corporate groups and government agencies needs to consider how they manage their contracts. Not having a well-thought-out strategy is also a form of contract management, but it can become very costly for your organization and may lead to dissatisfaction among your customers and suppliers.

Hundreds, Thousands, Tens of Thousands—How Many Contracts Do You Have?

Most companies and organizations have many more contracts than they think. Contracts can, for example, cover these areas:

Customer Contracts: Agreements and collaboration contracts with customers.
Supplier Contracts: Agreements and collaboration contracts with suppliers.
Subscription Services: Magazines, software, licenses, and other things you may not perceive as contracts but that entail ongoing costs.
Employment Contracts and special agreements with employees.
Lease Agreements: Contracts related to the premises where the business operates.
GDPR Contracts such as data processing agreements.
Confidentiality Agreements with employees, customers, and suppliers.
Other Contracts specific to your area of business.

Risks of Poor Contract Management

The more contracts you have, the greater the risks of poor contract management. You risk forgetting to cancel software and other subscription services that you and your colleagues have stopped using. You also risk forgetting to renegotiate or renew important contracts at the right time, which can lead to delayed deliveries.

One could say that poor contract management is like a car with a developing flat tire. You are still moving forward but not reaching your full potential, and profitability will be hindered.

From Binders to Cloud-Based Contract Management

In the past, it was common to collect all contracts in binders. Then computers took over, and contracts were stored in specific folders on a computer, with an overview managed in Excel.

Some companies and organizations still work according to the binder model and with folders and Excel—but they are becoming fewer, and it’s easy to see why. Instead, you should implement a modern digital contract management system that is fully tailored to handle contracts and eliminates the risks and problems of the old methods.

This new contract management takes advantage of the latest technology and is often referred to as cloud-based contract management or digital contract management. The online web service DealManager holds a significant portion of the market and has reshaped the landscape of digital contract management.

Article Tip: Excel Is Good But Not for Contract Management

Advantages of Digital Contract Management

Today, more and more companies and organizations are transitioning to digital contract management, and over 1,000 companies use DealManager. This digital contract management offers many clear advantages, which we will now examine more closely.

Overview and Structure

First and foremost, digital contract management provides a complete overview. Contracts are categorized and organized, making them easy to locate and track over time. Companies and organizations can be very different, so the structure of contract management is tailored to each unique operation.

Different Access Levels

Not everyone needs to see everything. In a smart cloud-based contract management system, different employees receive the information and access they require. Some examples include:

Salespeople gain an overview of customer contracts and can optimize their sales efforts.
The purchasing department sees all supplier contracts.
The HR department has access to employment contracts and other employee-related matters.
The finance department gets everything they need to perform their work in the best way possible.
The marketing department sees everything related to marketing and can take a firm grip on the marketing budget.
The CEO gets an overview of the entire operation without getting lost in the details.

The best part is that this division is just an example. In many small businesses, a CEO or finance manager handles most tasks and has access to almost all contracts. In larger companies, the roles are more numerous and strictly defined.

Smart Reminders

With well-thought-out digital contract management, nothing falls through the cracks. Employees responsible for contracts receive reminders via email and SMS and can then renegotiate, renew, or terminate the various contracts. Reminders can be automatically escalated if not acted upon within a certain time.

E-signing: Sign Contracts with a Few Clicks

A complete contract management system includes easy and smooth signing of contracts. This way, salespeople not only have full control over the content of contracts, but they also close deals by having customers sign contracts electronically, which can be done with or without BankID.

Statistics and Key Metrics

A good digital contract management system takes the overview and structure several steps further. With statistics and key metrics, you can see how contracts are distributed and get an exact picture of revenues and costs. The statistics and key metrics provide the right conditions for making informed decisions.

Article Tip: All Features for Complete Contract Management

Security and Support

Some of the most critical aspects include the contract management system’s operational reliability, security against breaches, and the technology that makes everything work. What is the "uptime"? What encryption is used? Where is your data stored? Which company operates the system, and what support is offered? Ask yourself questions like these when choosing a solution.