The Power of Post-Signature Contract Performance Management

Introduction

Contracts are the lifeblood of business operations, defining relationships, expectations, and obligations between parties. However, once the ink dries, many organizations don’t realize these the full, intended value of these agreements. Traditional Contract Lifecycle Management (CLM) systems and processes excel at getting contracts to the finish line—the signature. But what happens after that? Enter Post-Signature Contract Performance Management (CPM).

Our latest whitepaper, “Advanced Post-Signature Contract Performance Management,” explores the untapped potential realized when organizations focus on the contract performance after the signatureLet’s delve into why this approach is essential for businesses aiming to optimize their agreements value, reduce risks, and drive better outcomes.

The Post-Signature Gap: Why Effective Contract Performance Management Is Essential for Market Data Agreements

Many organizations invest heavily in pre-signature activities like negotiation, legal review, and approvals. However, the post-signature phase—where the actual value of a contract is realized—often receives insufficient attention, leading to compliance risks, missed opportunities, and inefficiencies that can cost businesses millions.

Market data contracts, in particular, demand a higher level of management due to their complexity. These agreements involve vast amounts of data, stringent usage and compliance requirements, complex pricing models, frequent amendments, and long-term commitments and are critical to maintaining a competitive edge. Yet, many firms still manage them using manual processes, spreadsheets, and other makeshift solutions. These outdated methods increase the likelihood of errors and make it difficult to fully capitalize on the benefits outlined in the contracts.

Without an effective contract performance management process, organizations risk inefficiencies, missed opportunities, and significant financial penalties, ultimately undermining their competitive position.

Why Contract Performance Matters

Contract Performance Management is not just about managing renewals and reminders; it’s about actively driving the performance of your contracts. This framework includes:

1. Activation Phase: Ensuring contracts are correctly ingested, stored, and set up for active management from day one.

2. Active Management Phase: Monitoring compliance, tracking milestones, and continuously assessing performance against Service Level Agreements (SLAs) and Key Performance Indicators (KPIs).

3. Reporting Phase: Providing real-time insights and oversight, enabling informed decision-making across the organization.

4. Change Management Phase: Handling amendments and organizational changes efficiently, ensuring that contracts remain aligned with business needs.

5. Renewal Phase: Preparing for renewals strategically, maximizing contract value, and minimizing disruptions.

6. Termination Phase: Managing contract conclusions, ensuring compliance with termination clauses, and overseeing post-termination obligations.

In addition to these phases, cross-phase considerations are crucial for maintaining continuity and compliance throughout the contract lifecycle.

This involves managing interactions with related agreements, ensuring accurate entity assignment, and preparing for potential audits. Organizations can mitigate risks by addressing these cross-phase elements, maintaining alignment across contracts, and providing a seamless contract performance management process from activation to archival.

Unlocking the Potential of Post-Signature Contract Performance Management

The post-signature phase is often underestimated, yet it’s the stage where contracts can truly deliver their intended value. Proper Contract Performance Management (CPM) ensures that agreements are actively managed, not just filed away, transforming them into powerful tools for achieving your business objectives.

Each phase of CPM, from activation to termination, is crucial for maintaining alignment with business goals, ensuring compliance, and maximizing the benefits of your contracts. By adopting a structured approach to these phases, you can prevent costly oversights, enhance efficiency, and fully leverage the opportunities embedded in your agreements.

For a comprehensive guide to mastering each phase of Contract Performance Management, explore our whitepaper, “Advanced Post-Signature Contract Performance Management.”