These activities require close cooperation with key stakeholders. You must disclose all organizational and regulatory requirements that apply to the parties and the subject matter of the agreement. Details such as value, duration, criticality and other aspects need to be addressed and agreed. If you have a structured contract management plan, it can be broken down into phases, making it easier to understand responsibilities at key points in the process and means employees and suppliers don`t have to spend time reading the information they don`t need at that time. There can be many moving parts in a contract. These can be predefined mandatory activities that must be performed according to a schedule, or when certain situations do or do not occur. TIP: While it is important to accurately reflect the contract in the CMP, it is best to leave the legal jargon to lawyers. Use simple English to ensure its effectiveness as an easy-to-use engagement tool. The development of the contract management plan allows both to identify the specified activities and to derive from the unspecified activities, their deadlines and their performance responsibilities. Your contract management plan must be an officially written document. This ensures everyone involved in the process – employees, stakeholders, suppliers – their roles and responsibilities and what is required.

Although the formality helps with the structure, it is important not to complicate the language so that the document is user-friendly. It defines the purpose of the contract, its scope, scope and duration, risk profile, working methods and responsibilities, as well as many other aspects for discussion, consultation, debate and decision-making. Contract management software integrates with existing ERP systems and you can also configure the software so that you can only implement the features your business needs most. This makes it a useful and cost-effective solution for successful contract management and ensures that your contract management plan is adhered to every step of the way. The initial effort invested in developing a contract management plan will easily pay off several times, especially if the contract manager is changed before the end of the contract or if things unravel for some reason. The existence of the contract management plan is extremely useful when the responsibility for the associated contract changes, especially if there is no possibility of formal transfer. Having a contract management plan for contracts that warrant active management is really a no-brainer. Of course, this plan must be comprehensive and cover all the activities necessary to be effective, especially if the corresponding contract meets an internal definition of complex.

The plan also facilitates the tracking of the completion of activities according to the schedule by highlighting possible delay issues and time buffers provided by early completion of the activity. Such a plan provides a compact way to make visible what needs to be done, when and by whom. Targeted (low-value contract, high risk): Requires a CMP that focuses on risk management elements (performance monitoring, KPIs, regular reports and meeting schedules). Custom reports allow you to analyze operational data and workflows, and automated reports track important information and milestones related to your contracts. You can set up trigger-based alerts for these milestones and events so that nothing goes under your radar. Whether it is changing circumstances or requirements, lessons learned or good advice, an investigation or complaint from an internal stakeholder or an external third party, the results of a regular review of ongoing relevance, or the recognition of excess, there can be many triggers that result in the need to change certain elements of the contract management plan. In general, the more complex a contract is, the more complex it is: The Value Risk Matrix (RVM) is a useful contract management tool to stimulate the development of your CMP. The VRM classifies contracts into one of four categories based on their value and risk to the business. A contract management plan is a specific way to reduce stress, perhaps a lifeline, and simply good business sense. Trying to manage a large or important contract without a contract is short-sighted and risky, both organizationally and personally.