Managers that regularly oversee agreements for companies have to measure results on an ongoing basis. Thus, they depend on contract management KPIs to align goals, develop the right metrics, and watch the CLM carefully. However, these indicators need to be SMART to keep in check those that are relevant to your operations.
5 KPIs in contract management
To improve your company’s profitability and performance, there are 5 main contract management KPIs you can’t miss:
Duration of CIL (Contract Initiation Lifecycle)
When you apply a CLM system, its advantages can shorten delivery times, using e-signature, templates, and automated drafting. Along with proper monitoring, these features serve to speed up CIL and produce better outcomes.
Contracts obligation performance
Besides, noncompliance with contract obligations could damage relations and lead to overpayment of claims. To avoid these problems, you can rely on Soho software to monitor any renewal, deadline, or commitment.
ACV (Annualized Contract Value)
If you compare this value against the company’s revenue information, you can see how renewals affect your income. Hence, you know how much money re-signing could bring concerning current agreements.
OVV (Order Value Variance)
TRV (Terminated Contract Remaining Value)
Contract management KPIs in an easy way
Contract management KPIs must be an integral part of your CLM system to boost company performance. With Koho, you obtain a centralized data repository and many features to have all the metrics you need.