Contracts are the lifeblood of a business and key in the context of expanding national and international business relations – but their contents and management are becoming more complex.
No matter the size of a business, the number and variety of contract documents to be prepared, negotiated and managed are steadily rising, and the content of such contracts is also becoming more specific and complex. KPMG can assist in bringing transparency throughout the whole contract landscape and enable clear, integrated processes to the lifecycle.
Contracts are key in the context of expanding national and international business relations. Creating, updating, and managing such documents, especially in view of the number and level of complexity of legal and regulatory requirements, can be challenging.
Challenges can occur across the entirety of a contract’s lifecycle. While contract management solutions have been optimized thanks to digitalization, technology alone does not drive successful results on its own - it requires processual insights, focused operating models, data-enhanced experimentation and business adaptation across units.
Key challenges and our solution:
Heterogeneous structures, i.e. no or only department-specific defined roles and responsibilities for the creation, ownership and administration of contracts.
Our solution:
Defined governance for the scope and establishment of roles and responsibilities for an integrated contract lifecycle management.
Increased efficiency by establishing binding and system-based contract management processes with clear responsibilities.
No comprehensive transparency of the contract landscape and insufficient overview of contractual risks and agreements.
Our solution:
Ensure transparency, overview and traceability throughout the whole contract landscape as well as monitoring and evaluation of relevant contract content for a comprehensive risk management.
Fast, complete and centralized availability of important contract information.
Informal procedures and partially redundant process steps lead to inefficiencies in the creation and administration of contracts and templates.
Our solution:
Integrated and communicated contract management processes along the contract lifecycle i.e. template management, contract creation and contract management.
Isolated, department-specific systems are hindering holistic management of the contract landscape.
Our solution:
Central and binding contract management IT-System as an up-to-date and complete information basis.
Ensuring compliance with new legal/regulatory requirements.
KPMG can assist your organisation in bringing transparency throughout the whole contract landscape and enable clear, integrated processes to the lifecycle.
An effective contract management program enables organisations to have visibility into their contract portfolio. This visibility is crucial to secure risk management processes, ensure compliance standards and to react to business challenges by promptly locating and analysing key provisions across their collection
KPMG can support your organisation by taking you every step of the way in the process of building, reviewing, and sustaining a full cross-functional contract service platform.
Our best practice model ensures a full contract lifecycle management across your inhouse departments and an efficient internal implementation process. Through our 360-degree delivery setup, we will comprise and consolidate profound KPMG expertise and experience to support KPIs across your internal functions, embracing cross-function value drivers from the offices of the CIO, the CFO, the CPO and Legal while taking in the ESG agenda. We call this ‘breaking down the silos’.
Breaking down the silos
In order to reduce complexity and drive enterprise-wide benefits, there are a multitude of areas that should be considered when thinking of Contract Lifecycle Management. We can offer our vast local experience and utilize our best practice framework to ensure the various disciplines work together for your benefit:
- Stabilizing contract infrastructure and full project setup – review existing technologies, processes and policies and identify risk and regulatory requirements to secure the best applicable journey towards better contracting.
- Contract processing and template automations – applying models to extracted contract text and prepare custom contract fields
- Contract collection, setting up a document repository and setting up a process to collect missing contracts across functions
- Secure processes for reports and reviews across various categories with project stakeholders, including legal counseling for contract drafting.
- Designing and securing analytical models across contract data, language and clause identifications, required risk and commercial, terms such as assignment rights, committed spend, termination penalties, etc.
Lena Ernlund Malmberg
Director, Head of Legal Transformation
KPMG i Danmark
Mats Erik Berger
Director, NextGen Operations
KPMG i Danmark
Yelene Van den Bossche
Director, NextGen Operations
KPMG i Danmark
