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every procurement professional needs to know these free contract management key performance indicators kpis to ensure that you are getting the most out of the pre- and post signature contract management phases that inevitably you deal with i i massively appreciate that not every single procurement professional out there deals with contract management throughout the entire life cycle so sometimes you're just dealing with contract management up to contract signature and then sometimes there's a Handover right but these kpis will cover both sides of the pre and post signature contract management phases the first kpi that you should absolutely use as your main kpi for the pre signature contract management pH is the time to Signature time to contract execution whatever you call it it's the total cumulative time from the contract request so someone in your business saying hey we need to go and have this supplier and we need a contract with that supplier to ensure that we get what we need all the way through to you both yourself and your supplier signing that contract document there's a lot of different steps along the way you've typically got your initial phase your request phase drafting negotiation red lining reviews and approvals internally and then signature so the reason this KP is really useful is because for one if you've got a bad or a underperforming contract review process this is the ultimate kpi for that you should be able to dive into any single one of those phases and you will be able to see where the blockers are in your business why perhaps a contract is taking so long to negotiate perhaps it's complicated language in the contract perhaps you have an inefficient way of negotiating with your suppliers perhaps you're accepting too many third party contracts and therefore you're having to just spend so much time reviewing every document as opposed to using your own contract templates so there's so much that can be told through this one kpi but you really do need to go granular with it and that kind of leads on to the second kpi and I was going to originally just say that you should look at your time to contract approval and this is that one individual phase typically where someone in your business will have a review of the contract negotiate it and then send it off to someone else in the business to get the okay that it is indeed all right to sign this contract but I would just pair this off with that that first kpi and I would ultimately have kpis for every single phase of your contract review process so how long does it take to for example respond to a contract request do we get the right information every single time and I would just replicate that thought process throughout your entire process and then once you've started to do that you can start adding your own like service level agreements within your business so for every single phase along your contract review process once you've built up those kpis and you've really con granular with every single one you understand them that's when you can start making commitments to the rest of your business about how well you're going to perform each one so this might be but for every single contract request that you get you respond in a set amount of time you commit to every Master Services agreement being signed off within 5 days every SAS agreement being signed off within 14 days something like that you can build out some really good promises to your business off the back of these initial set of key performance indicators so that's why I I really value those so the final key performance indicator is quite a broad one and you could interpret it in a few ways and I'm just going to give you a couple of interpretations for it but you should be monitoring and reviewing your compliance right so this is a compliant kpi and the first way to look at this is how much of that contract in the pre signature phase complied with your internal policies procedures and things like f so perhaps you've got a contract Playbook a set of contract standards and within that you have 10 must haves for every single contract perhaps you have some fullbacks and then if you don't reach your fullbacks that's when it goes to say your your legal counsel your General Council for them to review and do the approval phase that we already mentioned earlier on that's a really cool way to firstly get a picture of your entire risk portfolio from a supplyer contractual position right because if you start to understand all of the variances that you have between the contract Clauses and positions you need and the ones that you actually get that's great that's so much information there you can do so much with that and you can really help shape the way in which you contract or do stuff in your business and and your general Council will love that but then once the contracts been signed we actually need to think of compliance in a different light and that is contractual obligation performance how many of the obligations so an obligation quite simply is a promise from one side to the other that we would do something or not do something so typically it requires the supplier you yourself to do something as part of that contract might be to provide a service might be to provide Goods at a set time and typically the more complex the agreement the more obligations there are and the more attention that you would need to put on that specific contract what you want to do with compliance kpis here is for your most strategic contracts you want to monitor the um number the percentage of contract obligations met by each of your most important suppliers in their contracts it's really simple it's really underused and this alone can give you a really good insight into the performance of that supplier on this particular contract if you have numerous contracts for this similar services this is a really good way to identify why one supplier perhaps is performing better than the others and then you can use that information to get all of the other suppliers providing similar or the same service up to that level or a very high level at least so these three concepts these free kpi types I really value them and I've used them maybe for like the last five years or so and every single time they've enabled me to make either a better process better contract better negotiation strategy or just know one real simple one is typically contracts aren't balanced and by understanding and going granular with the second kpi you can really understand which Clauses are causing all of the bother with your suppliers and you can maybe change those make them a little bit friendlier change the language somewhat make them into plain language and then monitor the speed changes in terms of getting that contract signed or getting the contract through the negotiation faster so yeah really really valuable kpis everyone should certainly check those out and before you go I think you should check out this video right here super useful for any procurement professional this one is all about the ways in which procurement isn't just about buying procurement is so much broader than that I should definitely go and check it out now see you