How do you manage your contract portfolio for optimal quality and quantity?

1 Define your objectives and criteria

Before you start negotiating or reviewing contracts, you need to have a clear idea of what you want to achieve and how you will measure it. What are your strategic priorities, financial targets, risk appetite, and customer expectations? How will you evaluate the quality and quantity of your contracts based on these factors? You can use various metrics, such as revenue, profitability, compliance, satisfaction, retention, and innovation, to assess your contract portfolio and identify gaps and opportunities.

2 Segment and prioritize your contracts

Not all contracts are created equal. Some are more complex, risky, or valuable than others. You need to segment and prioritize your contracts according to their characteristics and impact on your business. You can use different criteria, such as contract type, size, duration, scope, and performance, to categorize your contracts and allocate your resources and attention accordingly. For example, you may want to focus more on long-term, strategic, or high-risk contracts than on short-term, operational, or low-risk ones.

3 Monitor and review your contracts

Once you have signed or renewed your contracts, you need to monitor and review them regularly to ensure they are delivering the expected results and value. You need to track and analyze the key performance indicators, milestones, deliverables, and obligations of your contracts and compare them with your objectives and criteria. You also need to communicate and collaborate with your contract partners and stakeholders to address any issues or changes that may arise during the contract lifecycle. By doing so, you can identify and resolve problems, improve performance, and leverage opportunities.

4 Optimize and renew your contracts

As your business environment and needs evolve, you may need to optimize and renew your contracts to align them with your current and future goals. You need to evaluate the strengths and weaknesses of your existing contracts and determine whether they are still relevant, competitive, and beneficial for your business. You also need to negotiate and renegotiate the terms and conditions of your contracts to enhance their quality and quantity. For example, you may want to extend, expand, or modify your contracts to increase revenue, reduce costs, or mitigate risks.

5 Manage and archive your contracts

Finally, you need to manage and archive your contracts in an organized and accessible way. You need to store and document your contracts and related information in a secure and centralized location, such as a contract management system or a cloud-based platform. You also need to update and maintain your contracts and records to reflect any changes or amendments that may occur during the contract lifecycle. By doing so, you can ensure compliance, transparency, and accountability for your contract portfolio.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?