Contracts Processed

Related KPIs

Contracts Processed Interpretation

High values of Contracts Processed suggest a streamlined contract lifecycle, indicating effective processes and resource utilization. Low values may signal inefficiencies, such as delays in approvals or inadequate staffing. Ideal targets often depend on industry standards and organizational capacity.

• Above target threshold – Indicates robust operational efficiency and high sales activity
• At target threshold – Suggests stable performance, but room for improvement exists
• Below target threshold – Signals potential issues in contract management processes

Common Pitfalls

Many organizations underestimate the complexity of contract processing, leading to inefficiencies that can erode financial performance.

• Relying on outdated technology can slow down contract processing. Manual workflows often create bottlenecks and increase the risk of errors, delaying revenue recognition.
• Neglecting staff training on contract management best practices leads to inconsistent processing. Employees may miss critical compliance checks or fail to follow established workflows, resulting in delays.
• Failing to standardize contract templates can create confusion. Variability in terms and conditions complicates approvals and increases the likelihood of disputes.
• Overlooking stakeholder engagement during the contract review process can prolong timelines. Lack of communication among departments leads to misunderstandings and delays in finalizing agreements.

Improvement Levers

Enhancing the efficiency of contract processing requires a focused approach on technology and team capabilities.

• Invest in automated contract management systems to streamline workflows. Automation reduces manual errors and accelerates the approval process, improving overall throughput.
• Implement standardized contract templates to ensure consistency. Clear and concise templates facilitate quicker reviews and approvals, minimizing delays.
• Regularly train staff on contract management tools and best practices. Empowering employees with knowledge enhances their ability to process contracts efficiently.
• Foster cross-departmental collaboration during the contract review phase. Engaging all relevant stakeholders early can expedite approvals and reduce misunderstandings.

Contracts Processed Case Study Example

A mid-sized technology firm faced challenges with its contract processing, resulting in delays that impacted cash flow. Over a year, the number of contracts processed stagnated at 120 per month, causing frustration among sales teams and clients alike. The CFO initiated a project called “Contract Acceleration,” aimed at improving efficiency through technology and process redesign.

The initiative involved implementing a cloud-based contract management system that automated approval workflows and integrated with existing CRM tools. Additionally, the company standardized contract templates and established a dedicated team for contract reviews. These changes not only reduced processing times but also improved compliance and reduced errors.

Within 6 months, the number of contracts processed surged to 250 per month, significantly enhancing cash flow and customer satisfaction. The sales team reported faster deal closures, while clients appreciated the streamlined experience. The success of “Contract Acceleration” positioned the firm as a more agile player in the competitive tech landscape, allowing it to pursue new market opportunities with confidence.