Give your colleagues access to contract data
Access provides insight and ensures that important knowledge reaches the right people
In order to make the right decisions, it’s important to understand the contractual basis of your company’s obligations. When knowledge and insight is only available to one key person the risk of making wrong decisions that can affect your bottom line and reputation increases.
For example, you are responsible for your procurement contracts and are in charge of identifying needs, negotiating and contracting. You know the duration of the contract, whether it’s index-linked, when it’s due for renegotiation and who the supplier’s contact person is – but are there times when this knowledge can create value for someone other than you?
Contracts typically involve multiple stakeholders from different departments and in some cases even across borders. When someone other than yourself is a stakeholder in the contracts it emphasises the need to ensure that the relevant people have access to contract data Inefficient or no access to relevant contract data can lead to confusion, delays and potential legal issues within an organisation.
“Centralising insight into corporate obligations is not just a best practice in contract management; it is at the heart of any successful organisation that understands that accountability is the foundation for sustainable growth”
Rasmus Pultz
CCO & Partner, COMAsystem
It is therefore crucial to implement a solution that enables seamless access to important contract data for your stakeholder colleagues. The right access not only improves operational efficiency, but also promotes trust and transparency among stakeholders involved in the contractual agreements – thus you may not only mitigate risks but also increase your focus on ongoing follow-up and compliance.
Risks of lack of insight
It often happens that no one has access to important knowledge and the contractual relationships that may exist between you and a supplier, employees or your customers.
3 major risks
- Dependency on individuals:
When just one or a few people possess the necessary insight and knowledge it creates a vulnerability for your business continuity, especially if they leave the organisation or become unavailable due to illness, for example. - Risk of errors and misunderstandings:
With few people having access to contract information, there is a greater risk of errors and misunderstandings as missing or incorrect information may lead to poor decisions or misunderstandings. - Negotiation weakness:
If only a few people know the contract terms, the company may be in a weaker position for future negotiations; this may lead to poorer contract terms and prices if historical data is not available.
By implementing robust processes and systems to manage and provide access to essential contract knowledge, your business can streamline your contract management processes and minimise unnecessary risks.
The Danish Data Protection Agency's recommendation for access rights on demand
Access rights for employees are customised to a work-related need and are limited to, for example, the ability to read, add, search, modify, extract or delete data. The possibilities for limiting access rights usually depend on the design of the IT systems, which is why these aspects are considered at the time of designing, purchasing or changing existing IT systems.
Read the full recommendation on the Danish Data Protection Agency’s website
Become compliant by managing access, sharing knowledge and being notified when to react
Where are the contracts stored today? – If it’s on a network drive, access is difficult to manage and you are not automatically alerted when important intersections in the contract lifecycle are reached.
Using a contract management system with granular access management makes it easy and secure to share knowledge between departments and colleagues. As a contract manager, you can control access while safeguarding the sensitive data included in your contracts – and not least ensure that the right people are notified when, for example, a contract is up for renegotiation.
The departments and individuals most likely to gain value from access to knowledge are:
Management
Your line manager and the senior management team should have access to ensure that the terms and conditions are aligned with the company’s strategy and goals, and that the necessary resources are available to implement the agreement.
Legal department
Your legal team may need to review and approve the contract to ensure it complies with the law and protects the company’s interests and intellectual property. This to avoid the contract is entered into on terms that could put the organisation at unnecessary financial risk.
Finance department
The finance department plays a crucial role in evaluating the financial aspects of any contract to ensure it aligns with the organisation’s budget and goals. They pay particular attention to the pricing structure, payment terms and the potential impact on budgets.
Procurement department
The procurement department often has a central role in supplier management and contract management in day-to-day operations – this can also be as an active party in negotiating contract terms and following up on supplier performance against the agreed contract.
Operations department
Operations or the colleagues who will work closely with the supplier on a daily basis will have an interest in ensuring that the contract fulfils the needs and requirements that make the agreement meet their expectations.
IT department
If the contract involves the provision of IT services or products, the IT department will be an important stakeholder to ensure that technological requirements and security standards are maintained.
Take a pragmatic approach
Determine who should have access and give your colleagues access to contract data; this will enable you to make the right decisions going forward, based on insight and current conditions.
