Since Scrum is a project management framework that aims to minimize costs and maximize business value, project managers must continuously look for ways to improve productivity and efficiency.
As such, a previous post highlights ‘5 Project Management Hacks for Improved Efficiency and Productivity’ while still ensuring the quality of work and project outcomes. Such tips include adopting project management tools to streamline individual and collaborative workflows, setting clear and realistic goals as a yardstick for success, and prioritizing tasks to meet tight deadlines and achieve objectives.
On top of these tips, managers and their teams can also handle project scenarios more efficiently through effective contract management and renewal. Below, we discuss the benefits of optimizing contract-related processes and which strategies project managers can employ to ensure timely contract execution and renewal.
Benefits of effective contract management
Contracts are crucial to outlining the terms of the relationship between project teams and their partners, vendors, and suppliers. Since Scrum teams can also outsource staff to respond more quickly to client requests and stakeholder feedback, well-drafted contracts help formalize outsourced workers’ integration into workflows while also protecting business interests.
Therefore, contract management must be undertaken to handle contracts throughout their entire lifecycle, not only during initiation and execution but also during monitoring and renewal to ensure project continuity.
Furthermore, contract lifecycle management can address scope creep, which negatively affects over half (52%) of projects, according to a CIO article. Scope creep can hinder project completion and success through uncontrolled growth and delayed timelines, but contracts can clearly define a project’s scope to meet its intended goals and work within its budget and timeframe.
Lastly, contract management maintains regulatory compliance and prevents legal conflict – ultimately enabling projects to form new partnerships or manage existing ones without jeopardizing transparency and accountability.
Contract management and renewal strategies
Utilize advanced automation software
Scrum project teams must be prepared to automate contract-related processes to truly realize the benefits of contract management for productivity, efficiency, and success. In this case, SOFTRAX’s excellent contract renewal management software helps ensure contract billings happen on time to minimize productivity losses and project delays, even for the most complex agreements and renewal processes.
Through automated coordination of pricing for services and contractual terms and coverage dates, project managers can also avoid lost revenue and stay within specified budgets. Lastly, it helps to utilize the chosen contract management platform’s reporting and analytics capabilities to gain insight into past, current, and future performance.
Leverage communication and collaboration channels
Contract management, especially during initiation, negotiation, and renewal, not only concerns project teams but also other stakeholders like investors, clients, and partners. As such, Scrum project teams must leverage digital tools to maximize communication and collaboration even in remote work arrangements.
For instance, cloud-based document collaboration software like Google Workspace enables multiple parties to co-author contracts and other legal agreements in real-time while still maintaining accountability through features like version control and edit history. Meanwhile, video conferencing platforms like Zoom and Microsoft Teams enable project teams, even those spread across the globe, to collaborate on contract terms and timelines via video calls, file sharing, and project management.
Monitor contract risks regularly
As mentioned earlier, contract management must be comprehensive in order to cover every step in the contract lifecycle, from planning and execution to potential renewal or termination. Thus, it’s only appropriate for project managers to routinely monitor contract risks, such as breaches in confidential information, and adjust accordingly to comply with data security standards. Monitoring and evaluation are especially crucial, considering personal credentials, financial data, and industry/trade information are typically part of contract negotiations.
By adopting the strategies mentioned above, Scrum project managers and their teams can effectively manage contract terms and negotiations to consistently meet project deadlines and overall goals.
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