For many organizations around the world, contracts and agreements govern the way that they conduct business relationships with external parties, like customers, suppliers and partners. In order for business relationships to be effectively managed and for your business to extract the maximum potential and value from your contracts with external parties, it is necessary to track and proactively manage contract milestones and obligations effectively.
Contracts invariably contain two types of data that need to be tracked and managed: Milestone data (like critical dates, contract parties, contract values, currencies, etc.) and obligations or performance-related data.
While some companies may capture contract milestone data in spreadsheets or databases, it is relatively rare to come across businesses that adequately track and enforce compliance to contract-related commitments and obligations. One reason for this may be the fact that historically, Contract Management has suffered from a lack of strong enterprise sponsorship and ownership. We are now observing an increasing number of General Counsels taking on this mantel on behalf of the business to drive through ownership and responsibility for contract-related obligations and risk management.
Contract obligations may be applied to both your business as well as the external party and may include conditions that need to be complied with or tracked to adhere to corporate governance or industry regulations, quality commitments, performance targets, payment terms and schedules, etc.
Dolphin Contract Manager treats contract obligations as dynamic tasks that can be created, classified and allocated to the relevant business stakeholder who will have responsibility for ensuring that the specific obligation task has been adhered to or complied with. The system includes a unique closed-loop compliance funtion allowing contract managers and business executives to monitor compliance to contract commitments and obligations and to provide the senior management team with management information about the status of compliance to contracted commitments and obligations.
To understand more about the importance of managing contract obligations across the enterprise, why not register for Dolphin Software’s free-to-attend web seminar on Tuesday the 12th of April 2011. Further information can be found at: http://dolphin-software.com/lp_contract_obligations.htm