Business contract design via Contract Management operationalized methodology

Abstract

How can organizations utilize Contract Management in designing their business contracts, and why should they do so? This chapter examines Contract Management and how to utilize it as a contract design instrument. It explains how companies can better achieve their business goals through business contract design, combined with more thorough adaption of the Contract Management approach throughout the contract lifecycle. In addition to business goals measured by direct monetary value, Contract Management can also drive other business targets. In this capability, Contract Management is able to nudge corporate leadership and drive the business contract process to transform contracting practices, including contract design, in the corporate world. Putting theory into action, this chapter introduces ten solid solution proposals for businesses to realize internally and externally in their business contract design by applying Contract Management operationalized methodology, as this chapter terms it, to three contract design principles: user-centricity, simplification and visualization. This chapter demonstrates what benefits companies can gain by combining the Contract Management and contract design approaches.