Legal departments typically spend the most time and money on managing contracts but struggle to implement a comprehensive contracts process and metrics strategy across the contract life cycle. Legal leaders are not using metrics to actively monitor and manage their contracting function. The result? Slow contract turnaround times, mismatched resource utilization, increased risk, revenue leakage and strained customer relationships.
Legal leaders must streamline contract activities, rationalize handoffs and identify critical opportunities to leverage technology. Plus, a contracts strategy helps to use metrics to identify performance improvement opportunities. Contract management is inherently complex, involving many steps, diverse stakeholders and disparate data sources. Without a defined metrics strategy, legal leaders struggle to identify actual versus perceived process failures, size potential impact, prioritize process improvement efforts and measure solution effectiveness.
Efforts to report “anything and everything” will provide only limited insight into legal’s performance and impact. Capturing and sharing a high volume of directionless data will paralyze teams, instead of focusing them on distinct actions that move the business forward.
Legal leaders must represent and develop what the business needs in terms of metrics to derive value from contracting data and drive strategic outcomes.