Business owners know the importance of contract management software and the processes and steps required to implement the system. The drawbacks of a paper-based system are also very clear. The main challenge for most businesses is coming up with a detailed and workable plan that gives the specific requirements of the business. To install the correct online contract management system, business employees need to brainstorm and think of its main objectives and goals and what issues they expect the system to solve. The manager is expected to facilitate and come up with a plan that states the current system in place, how the system works, who is responsible for handling which tasks and finally what problems are encountered in the current system.
The main function of a plan is to ensure that a business purchases the proper online contract management software that will make their contract handling process better and easier. The requirements also help you determine what features you want to be included in the customized contract management system. A plan also helps your business stay focussed and aim at fulfilling its goals and meeting the required standards. Creating a functional plan is not as easy as it looks. You are required to provide a comprehensive plan in an organized manner. The plan should provide all the essential details and information that will help in choosing the correct contract management software for your business.
Steps to Follow When Creating a Plan
- Identify the main stakeholders
Implementing contract management software in a business usually affects the stakeholders and they should be informed about such drastic decisions. The process of installing the system also requires the input of several parties. Additionally, the cost of acquiring and installing the system is noticeable meaning it needs approval by the major stakeholders. Some of the most important parties that should not be left out include IT, procurement, legal, third-party suppliers, persons with spend approval rights, and those with signing rights. The contributions and opinions of these individuals are very crucial in this process.
- Driving points and issues
The first question you should be able to answer is why your business needs contract management software. Identify the specific problems that your company is experiencing from using the current system and what you would like to make better. Some of the major thinking points include the staffs’ capability to handle all contracts manually, the time used to complete and approve a contract, whether deadlines are met, are there set standard processes, and do people adhere to them, do you always want to link certain documents to others in a different system, and finally what are the main challenges in handling contracts.
- Processes employed by your company for contract management
Implementing a contract management system in your business has an impact on the contract management process. The system once installed makes the process more efficient, quick, and accurate saving your company resources and time. Before knowing which software will improve the system and make it better you need to evaluate the processes used in the current system and how they cause issues. Some of the things to note about the contract management process include the workflow, people involved and their responsibilities, the objective of the system, access to the previous up to date documentation, compliance level of the system, how you evaluate the performance of a process, and finally what problems arise from each process.
- Capabilities of various contract management software in the market
The market has several offers and types of contract management software with varying abilities. The prices and provisions of the contract management systems also differ. You are required to choose software that will meet the needs of your business and solve the issues highlighted. Browsing through the markets and online platforms and providers helps in discovering the available features and offers. The correct contract management software should have a promising plan and capabilities that will serve your business even as it keeps growing. Furthermore, the system should be customizable to meet your business objectives and the scope of the contract management process.
- The first set of requirements of your business
Since you already identified the requirements, you want to be included in the contract management software compare them with the list of capabilities and provisions on websites. You can add on more features and capabilities you would want especially those that are important and were not already included. Consider all the typical business requires i.e., technical, business, functional, and process requirements. You should also arrange the requirements in order from the most essential to those you can do without.
Conclusion
Identifying and providing a detailed plan on what you expect the contract management plan to achieve is very crucial. It helps you choose the correct type of software for your business and ensure that your business meets its goals and scope. Step by step evaluation and brainstorming of the most important elements helps you arrive at a viable option that will meet your business needs and improve your contract management process.
