Boosting ROI across the contract management lifecycle
How contract excellence increases contract value
Contracts enable an organization’s performance, but their management is infrequently an investment priority. With data from more than 1,200 organizations, our ROI of Contract Excellence survey report explores a range of contracting metrics—and offers a framework for demonstrating and increasing ROI across the contract management lifecycle.
What does the ROI of Contract Excellence report reveal?
In conducting our research, we discovered that average contract value erosion is 8.6%, with the best performers operating at a little over 3% and the worst at more than 20%. This report explains the factors that impact these results and outlines the steps needed for improvement—highlighting areas in the contract management lifecycle where changes can improve ROI.
Why does contract value erosion occur?
For most organizations, the activities that support their contracting lifecycle are fragmented. They are conducted by multiple people, typically using multiple systems, resulting in no single point of data or analysis. The result? Organizations have little insight into the costs that are incurred or the value that is won or lost.
Processes (complexity)
To achieve excellence, an organization must understand the mix within its portfolio of contracts and have the visibility to analyze the degree of complexity associated with its management.
Elements (capability)
Excellence hinges on investing in the capabilities needed to perform on business and contractual intent—across people, processes, systems, and organizational values.
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