You're a new manager with a lot of responsibility. How can you master contract management?

1 Understand the basics

Contract management is not just about signing papers and filing them away. It is a dynamic and complex process that requires attention and care throughout the contract lifecycle. You need to understand the different types of contracts, such as fixed-price, cost-reimbursement, time-and-materials, and incentive contracts, and how they affect your obligations, risks, and rewards. You also need to know the key elements of a contract, such as scope, deliverables, milestones, payment terms, warranties, liabilities, and termination clauses, and how to draft them clearly and accurately. Finally, you need to familiarize yourself with the relevant laws, regulations, standards, and best practices that govern your industry and jurisdiction.

2 Plan and prepare

Before you enter into any contract negotiation, you need to do your homework. You need to define your objectives, expectations, and requirements for the contract, and align them with your team and stakeholders. You also need to research the other party, their needs, interests, strengths, and weaknesses, and identify potential areas of agreement and conflict. You should also prepare a negotiation strategy, including your BATNA (best alternative to a negotiated agreement), your target point, your reservation point, and your concessions. Planning and preparing will help you negotiate more effectively and efficiently, and achieve a win-win outcome.

3 Communicate and collaborate

Contract management is not a solo activity. It involves multiple parties, both internal and external, who have different roles, responsibilities, and perspectives. You need to communicate and collaborate with them throughout the contract lifecycle, from initiation to closure. You need to establish clear and consistent communication channels, methods, and frequency, and use them to share information, provide feedback, resolve issues, and document changes. You also need to build trust and rapport with the other party, and respect their culture, values, and expectations. Communication and collaboration will help you avoid misunderstandings, conflicts, and delays, and foster long-term relationships.

5 Evaluate and learn

The final stage of contract management is evaluation and learning. You need to review and assess the contract outcomes, performance, and satisfaction, and compare them with the original objectives, expectations, and requirements. You need to collect and analyze feedback, data, and lessons learned from both parties, and identify the strengths, weaknesses, opportunities, and threats of the contract process and relationship. You also need to document and share your findings, recommendations, and best practices, and use them to improve your future contract management skills and practices. Evaluation and learning will help you close the contract effectively and efficiently, and enhance your reputation and credibility.

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?