Fellow ELP blogger Tim Minahan has recently highlighted some interesting research concerning contract management and its associated problems over on his Supply Excellence blog.

He points to the findings of a recent study by the International Association of Contract and Commercial Management (IACCM), which claims that despite many businesses increased focus on contract visibility and risk mitigation, the age-old issues still persist.

According to the Contract Management Software: Market Sizing and Status Report, “…contract management remains one of the most manual, under-systemised” and ill-defined areas of business operations.

“In most business and public sector organizations, contract management remains one of the last undefined areas of activity,” says Tim Cummins, the report’s author and IACCM President and CEO.

“While there are certainly rules, policies, and authorities related to the form, content and creation of contracts — and there may even be resources operating with job titles like ‘contract manager,’ this does not represent a process with clear ownership or accountability for performance.”

On the up side, as Minahan rightly points out, the research does, however, reaffirm the view that using contract management software can have a beneficial impact when it comes to addressing the key problems associated with this troublesome area.

The research suggests that organisations utilising contract management software reported positive improvements with contracting and contract management control, alongside increased efficiency and effectiveness across the board.