Contracts are vital for accelerating business growth. They are the means that revenue is recognized regardless of enterprises. They impact every aspect of the organization and the people across many teams. In some organizations, it is sensible for dedicated personnel to collaborate across teams to handle contracts. However, the volume of contracts can increase rapidly, and in a way that is not as compared to the company’s total headcount.
A contract manager helps make sure that legal documents are moved effortlessly and swiftly from the point of the initial creation through negotiation and collaboration until they are signed. Using a robust contract management software, the contract manager is accountable for ensuring that documents are safe and organized in such a manner that makes them easily accessible and easily searchable by people who require this. They could also be accountable for other pre-and post-signature issues. These are the skills that an effective contract manager must possess.
Collaboration and Communication
One of the main obligations that contract executives have is translating the formal, complex business contract language into a way that everyone can comprehend the language. This means knowing terms like “legalese” and boilerplate language that are so typical in business contracts. The ability to communicate clearly and present your arguments to important stakeholders like executives and managers can give you the best chances of success as a contract manager.
While contract managers can assume an enormous amount of responsibility for themselves, they aren’t able to perform their duties independently. Behind every successful contract manager lies a team of professionals who have solid working relationships and are dedicated to the cause. So, effective leadership is a crucial contract management capability. Particularly, characteristics such as a high level of problem-solving and the ability to adapt to unexpected and new situations can benefit your job as a contract manager.
Organized andThen Some
A contract management job is all about organization. Who else will be able to have all the information and figures for a particular contract in be on hand? Who else will be able to input all of the details into your contract management tool? Once it’s entered, everyone can access it, and anyone can benefit from it; however, until all reminders, tasks as well as dates for renewals names and contact information, and other crucial details are entered, the contract manager has to be able to locate the relevant information and utilize it whenever and wherever needed.
Depth of Business Knowledge
In this sense, it is vital to have a diverse contact list within your company. However, a competent contract manager knows about the company’s operations; they will also be aware of the people to contact for expertise on a particular area or function. Therefore, the ability to communicate, network skills, and strong working relationships is essential.
Apart from having a good understanding of the business, they also have to know the contractual aspects of the business. They must:
- Keep a close eye on their agreements
- Be aware of the changes to the standard clauses
- Be aware of the accepted language changes
- Keep up-to-date with modifications to the templates for authoring.
- Know the importance of risk management when it comes to non-compliance
It’s normal to expect this, and you’ll find several negotiations to be done in all areas regarding projects. It is an essential element of the day-to-day work of a full-time manager of contracts since they communicate with suppliers daily.
Negotiating with other parties requires planning and preparation and looking for areas of common interest that can be used to create solutions that benefit everyone. The goal is to stay proactive and to get the best result for your side of the conversation. It’s equally important to be sincere and respectful, as this is the tone you wish to set for your relationship.
Be Technologically Secure
A contract manager’s ability can comprehend and adapt to technological advances can drive superiority in the contract process. With the capability to push for the latest technological advances and improvements, contract managers will ensure continuous improvement of processes and administrative tasks. They can help keep team members motivated by bringing about changes while reducing manual work through automation and digitization and maintaining their department on the same level as other departments within the business.
Effectively Reduce Risk and Resolve Conflict
A quality contract has the lowest risk associated with it. To make sure this is the case, contract managers must effectively manage all risks, starting from clause up to the level of the vendor. They should be swift when making decisions to avoid potentially risky business deals and to ensure that the company is immune to the contractual risks it’s subject to.
Another element that can be considered when managing contracts is conflict. Contract managers need to research and comprehend the nature of conflicts and come up with a compromise that will benefit both parties. They must be able to manage the situation professionally, with transparency, to avoid future conflicts and strengthen the relationship.
The function of contracts is changing and, with it, the job of the contract manager. We have already reviewed a selection of the most important capabilities a contract manager has to learn to keep pace with the ever-changing, constantly demanding, and continuously challenging role of managing the contract lifecycle.