Complete guide to efficient contract management!

Knowing how to manage a contract is part of the success of every successful business, after all, it is unlikely to have satisfactory business performance without collaboration between people and companies, and this includes The way in which agreements are closed.How about understanding how technological progress has influenced this new way of dealing with bureaucratic processes? Then read on!

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Digital revolution and contract management: how are the two sectors connected?

We live in a time when the world is undergoing a true digital revolution of the means of production, since processes are becoming automated: applications, software and systems are increasingly present in the industrial and commercial sectors, and even more truncated bodies such as educational institutions, NGOs and Public Agencies, have also relied on technological solutions to streamline processes. Can you imagine why (or why), in addition to marketing innovation itself, technology matters? Know that because of this advance in production processes, companies had more time to pay greater attention to consumers. Thus, a new mentality emerged in the market: increasingly, customer experience has been portrayed as the protagonist of marketing and sales strategies. It's not enough to sell a product or service to the consumer. It is necessary to accompany him and make him as satisfied as possible with the entire process that led him to buy from your company. But you might be wondering, what does this have to do with knowing how to manage a contract? The answer is: everything!

What is contract management?

A contract consists of structural and functional elements, and to manage these details in an intelligent and efficient manner, the contract management: a methodology that groups resources, administrative techniques and procedures for the purpose of monitoring compliance with what was established in the legal instrument. Just to let you know for sure what the essential contractual elements are, here you go:

• Structural: referring to the possibility of altering contracts due to their multiple characteristics (when there are more than two parties involved);
• functional: addresses the interests of contractors, with the purpose of creating, altering, or excluding certain obligations and rights.

The practice of the technique aims to supervise contracts by observing their essential elements - and also, focusing on how the consumer will react to these changes throughout the contractual life cycle (preparation of the document, signature and its finalization). This scenario is what we know today as modern contract management, and it takes place with the aid of technology. In addition, since contract management ends up performing a function of taking care of all contractual stages with a view to their proper implementation, it is possible to notice that it also ends up help prevent losses and damages to the company, helping to avoid losses resulting from partial or inappropriate supervision of the contract flow. Then, investing in an automated platform to monitor deadlines and deadlines, centralize information and monitor the drafting of contracts, helps with the flow so that it is more agile, secure and efficient. Yes, that exists, but it's a matter for two minutes from now (hold on tight!).

What was contract management like before and after the internet?

You can imagine how painful it was to take care of contracts without the help of technology, right? For those who couldn't see it, just imagine that huge pile of papers to be filled out and reviewed. Before the advent of the internet, those who worked in contract management had an arduous task to manage all stages of document formulation and analysis manually. Any demand, even the simplest ones, took up a lot of time and resources, making the process slow and full of rework. After the evolution of the internet, new methods were added to this process, generating a new model of work organization, with benefits derived from digital optimization, such as the ease of finding various contract models available consulting forums and professional information exchange groups. With this Modernity and speed of the post-Internet, the security and legitimacy of the signatories were optimized with the adoption of digital signatures. Before that, these signatures were - and still are, on a smaller scale - made manually, and are recognized at a notary office through notarization. And today? We can state that The electronic signature is here to stay (this is the solution for legitimating signatories), and it is no wonder that it has been increasingly adopted because it is more practical and has legal validity. Not to mention that digital processes bring new management possibilities, centralizing and automating processes, reducing costs and bringing better results.

Knowing how to manage a contract is...

Put the customer as the protagonist! To know how to manage a contract, it is important to keep in mind that It's not enough just to convince the customer That he should buy your product, you must persuade him that the purchase he is making is more than just that: it is a true experience, capable of causing the best possible sensations in his brain. Therefore, for this to be possible, it is necessary to put the customer first. Thus, it is not enough to have a perfect product with an attractive cost-benefit ratio... O What is the path taken by the consumer to get to your product or service it has to be as easy and satisfying as possible! This starts when the customer doesn't even know they need to purchase your product or service. With great tact and with effective and professional communication, you will present to the consumer a situation close to the one they are experiencing. Generally this situation shows a difficulty that he has. Then, still tactfully, you will show that there is a Solution to his problems. People with difficulties like his have managed to get out of this situation and are living very well, thanks to products like yours. Finally, you will create the wish in it to have your product. Then you detail the characteristics that make your product, or service, unique. At this stage, the customer will want what you sell so much that only an unprepared sales team will be able to lose it. If that's not your case, the sale is won. However, don't think that the contract management job ends there. That's just the beginning. Knowing how to manage a contract implies managing well the steps prior to signing the agreement, with the stages of signing and document management.

Stages of contract management

For contract management to be as effective as expected, it is necessary to implement certain techniques, devices, and procedures at each stage of the contract flow. See below the stages of contract management.

1. Contract planning

In this first phase of contract management, all the conditions, clauses, objectives, risks, sanctions, and obligations of the parties involved, such as deadlines, for example, are stipulated. This planning must be well done, so as not to generate problems throughout the entire processing flow.

2. Prior drafting of the contract

Now the first version of the contract is drafted and this varies from company to company, since the drafting method will depend on the availability of human resources in the company. There are companies that have a legal department or hire legal service providers, while others adopt reliable contract models that can be adapted as needed. Regardless of the choice, the contract writing and review process must be rigorous to ensure that ambiguities and vagueness are avoided, and there is no substitute for human wisdom here.

3. Negotiation

It is the decisive moment for the flow of contracts, in which there is a detailed discussion of all the clauses of the document. Everything that has been done so far may be modified by the parties involved in the hiring. When not well managed, this step usually takes a long time, stalling the process. It is important for the company to establish a dynamic and interactive communication channel so that the document can be reviewed quickly by both parties.

4. Approval of the contract

The time has come to approve the contract. If the contractor and contractor agree to the clauses, just sign the document. The signature is the legal seal that attests the approval of the contract.

5. Contract effectiveness

Signed contract? Then everything is ready for the document to be executed. At that time, the company must provide all the materials, procedures, and services necessary for the implementation to take place and comply with the clauses. This is usually the longest phase of the process, since follow-up must be crucial for the contract to be fully fulfilled by both parties.

6. Implementation of revisions and additives

Revisions and additives are indispensable. No matter how careful and well planned the document is, there will always be sufficient clauses or deadlines to meet all the demands that arise during the implementation phase. After an analysis of the document, if necessary, revisions are made and new terms are added to suit the demands of the parties involved. All this must be recorded and attached to the original contract.

7. Termination of contract

Finally, the last stage of contract management that aims to ascertain whether the established contract has been fully fulfilled. It is very important that the document be reviewed by the parties, so that nothing goes unnoticed about the defined clauses. All pending issues must be resolved for the document to be effective. Contract management is essential in any company, facilitating the adequate fulfillment of contractual obligations, ensuring that the company will have the resources to carry out what was agreed. You already know: in some way, the contract will impact your company's budget, so it's best to take good care of all processes.

How to manage a contract after it's signed?

Those who think that the management of an agreement ends when it is signed are mistaken. There is a long post-subscription phase that cannot be overlooked. Thus, we have document management: Contract management must be carried out in a dynamic, agile and secure manner. What does Simple mean. First you need to know where to store the contracts. The safest place to do this is in cloud. However, the platform to do so must use the strictest protection standards, such as passwords and encryption at the storage location. Thus, the documents are protected from the actions of hackers or other cybercriminals. Then, it may be necessary to view who signed the contracts and who remains to sign them. To do this, the platform must provide a report on the life of each stored document. What do you know about digital file organization? After all this information about contract management, there may still be doubts about an efficient solution to do so, from electronic signature to file storage, right? Know, then, that there are options available on the market. Clicksign, for example, is their pioneer in Brazil! Our electronic signature tool has everything you need, integrated with your company's system through an API. Not sure what API is? We recommend reading this blogpost hereto! Therefore, since you already know how to manage a contract before it is signed, during and after, the path to success is already being trodden! Now just move on: shall we go together?