Contracts are unavoidable if you want to maintain a successful business. From purchasing needed products to selling your completed products or services, formal contracts that have been written out will generally be used for any agreements that you make. However, poor contract management can quickly derail the benefits that these written agreements provide throughout the lifecycle of the contract.
Once a contract is signed, you may think that the process ends there. But this couldn’t be further from the truth. In most cases, poor contract management occurs when someone in a leadership role negotiates the contracts and then transfers them to the operational level to be maintained. Unfortunately, these employees may not have the time or authority need to properly manage the contract. This is becoming a common mistake across many different types of organizations.
There are several ways that poor contract management can incur losses for an organization. More often than not, these losses accompany underperforming projects or missing renewals; however, if a breach of contract is committed, the penalties may be far more severe. Poor contract management can be avoided even though it is a complex task. But what can you do to avoid the associated risks as an organization?
Reviewing your processes and defining the scope of a contract is one of the best ways to get started and reverse the potential effects of poor contract management. Once this is done, you may find it beneficial to appoint an employee of the company to manage contracts or create a new position to fulfill this role. No matter which route you choose as an organization, the investment will provide new opportunities and benefit your bottom line.
How Can Excipio Help?
Excipio is vendor, product, and platform-neutral, which allows our clients to rest assured we offer a completely unbiased analysis of their environment. We take pride in being our client’s best ally and trusted advisor. Our primary goal is to provide the analysis and recommendations needed to best suit a client’s needs when creating or upgrading a data center as well as providing opportunities for preparedness and efficient data backup. For more than a decade, Excipio’s clients include a variety of Fortune 1,000 enterprises, government agencies, and vertical market industries.