Foundations, NGO and Not-for-Profit (NFP) organisations face ever-growing demands on their organisational capacity to manage contracts and contractual relationships. These relationships include funders, service delivery partners, suppliers and broader community stakeholder commitments.
The challenges of compliance and reporting in each of these relationships adds to the time and costs incurred, putting further pressure on already stretched organisational capacity.
Foundations, NGOs and NFPs are under pressure to deliver the maximum benefit for their funder investments. Many face guidelines on the portion of funds used by administration in order to assure funders that they are distributing the maximum dollars possible to impactful projects.
At Tactiv we have worked within the grant funded non-government and government sector for over 12 years. We have seen rapid changes in how the sector has adopted more standard commercial style procurement and service agreements to improve contracting. At the same time the sector faces ever increasing regulatory, compliance and transparency demands.
Over this time, we have witnessed first-hand how organisations can successfully “do more with less” by growing their capacity through adopting a lifecycle approach to contract management.
Here are 4 simple benefits a contract lifecycle management system can deliver to Foundations, NGOs and NFPs to improve their organisational capacity.
1. Eliminating Time Sinks
Simple and frequent demands for documents, information, help or other matters quickly amounts to a lot of time. Avoiding contract management turning into a support function is critical.
Organisations that have a contract lifecycle management system in place benefit from eliminating or reducing the most time-consuming tasks that chew up time and reduce capacity.
Some easy wins to address time sinks are:
- Alerts and notifications on important dates like milestones, renewals and payments
- Secure online role-based access to information
- Reporting on status to prevent and identify bottlenecks
2. Improving Contract Data Management
Foundations, NGOs and NFPs are often managing multiple contracts and a variety of suppliers, stakeholders and investors.
Managing critical dates, commitments and finances across contracts can be time consuming and complex. A CLM improves contract data management by bringing together all contracts in a central repository and providing the needed structure to improve data quality.
With data managed and quality assured organisations can streamline and improve management of:
- Renewals, milestone and variations management
- Budgeting, payments and financial management
- Acquittals and performance reporting
3. Saving through Standardising
Growing capacity within existing resources can be achieved from standardising business processes. Teams are relieved of reinventing the wheel and saved from introducing ad hoc processes. Compliance, audit and risk management all become far less arduous with standardisation.
Standardisation depends on not only having a CLM system, but also ensuring the standards are clear, and everyone involved is able to access and engage in the processes, data and content at the time needed.
Typically, a CLM provides standardisation benefits including:
- Templates for contracts, letters and reporting
- Online business process workflows
- Budget, finance and payment processing
4. Managing Contacts Data
Contract management is by definition an agreement between two or more parties, and often a variety of additional stakeholders.
Maintaining contact relationship information is a costly administrative task. Milestone reporting, payments and renewals are more time consuming, or even delayed, as a result of poorly managed contact information.
Having CRM capability directly integrated into contract management provides the ability to:
- Easily update and manage contact details
- Track and store interactions
- Manage all content shared, discussed or reviewed
- Align reporting and other information to contacts
Tactiv clients have transformed their organisational capacity by adopting contract lifecycle management. Our solution, Enquire is an online cloud based SaaS system that eliminates costly and inefficient administration and transition staff to higher value, proactive and growth focused activities.
Our experience means we have the insights to identify the quick wins to improve organisational capacity. Talk to us about assessing your opportunity to improve capacity with contract lifecycle management.