Contract lifecycle management (CLM) metrics are applicable to sell-side as well as buy-side contracts. It is also beneficial for the administration of other contract types such as intellectual property rights. Certain metrics are critical at the pre-contract award (upstream) stages, while others at the post-award stages. Legal, sales, IP and Procurement teams can leverage best practices and automation in combination with pre-award metrics to ensure optimal operational outputs. Technology has provided multiple streamlining options to the CLM discipline over the years.
This ranges from consolidated contract data repositories to advanced contract capability monitoring options. To derive the best possible outcomes form Contract Management methodology, it is imperative that these 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 system, is essential to achieve desired sell-side as well as buy-side outcomes.
The first in our knowledge sharing series, this white paper examines five main pre-award metrics to be kept in mind by all contract management professionals. These are:
1. Contract approval turnaround time
2. Business risk score
3. Legal and Sales operation costs
4. Compliance rates
5. Deviation from standard clauses