From its initial days of being recorded on parchments, contract management is now approaching radical evolutionary stages such as the utilization of Artificial Intelligence (AI). Despite these advances, it is important to observe that end-to-end contract lifecycle management (CLM) systems can be built only on the bedrock of sound contract management metrics.
During the post-award stage, CLM metrics ensure that your organization derives maximum project value. Such Key Performance Indicators (KPIs) span the entire gamut right from performance and cost, ranging all the way to compliance. It is essential to note that the most critical service delivery and management aspects of every contract kick in at this phase.
New advances such as AI promise to take CLM functionalities to newer heights through the use of untapped data stores such as unstructured data. Present and upcoming legislations such as GDPR (General Data Protection Regulation) will also benefit from such developments.
To derive the best possible outcomes from the contracting methodology, it is imperative that the contract management solutions are bolstered by robust processes and suitable metrics. The use of pre-award and post-award metrics with a major focus on process, people, and support systems is essential to achieve desired sell-side as well as buy-side outcomes.
Major Post-Award Metrics to Track
This is the second whitepaper of Zycus’s contract management knowledge series. It comprehensively explains the five post-award metrics that should be kept in mind by every contract management professional. These are as follows:
- Contract Performance Metrics
- Missed Contract Expiries
- Compliance Tracking
- Actual project value vis-a-vis initial project value comparisons
- The Return on Investment (ROI) Factor