Introduction
Contract managers are playing an increasingly important role in the corporate world. Once the preserve of large groups, contract managers are now frequently found in SMEs and mid-sized companies.
As with other “new” professions, there are currently few initial training courses dedicated to contract management(the European School of Contract Management is a must). However, this role requires a combination of skills and qualities that are essential. In this blog post, we’ll explore five essential qualities that every contract manager must possess.
1. Relational ease and clear communication
Interpersonal and communication skills are at the heart of contract management, perhaps even more so than writing skills.
A contract manager must be able to express his or her opinions clearly, defend his or her point of view and convey messages tactfully and effectively, with a view to negotiating contracts and resolving (pre-)litigation. Strong oral and written communication skills are therefore essential for building relationships with stakeholders, understanding their needs and ensuring that all parties are on the same wavelength.
2. Meticulousness and attention to detail
Contracts are often made up of a series of documents (general conditions, appendices, etc.) which make them complex and therefore require meticulous attention to detail.
A contract manager needs to have a keen eye for potential risks, gaps and inconsistencies. This attention to detail is essential both during the drafting and negotiation phases, to ensure the consistency and feasibility of contract stipulations and risk management, and during contract execution, with the monitoring and control of milestones, deviations, delays and other contingencies for which it is essential to act as far in advance as possible.
3. A critical and analytical mind
Contracts often contain legal jargon and complex financial terms. In addition to “hard skills” in contract law and finance, a contract manager needs solid analytical skills to interpret and understand these terms, and find solutions or alternatives when these terms are not favorable to the company he or she represents.
More generally, critical thinking and analytical skills enable us to identify trends, risks and opportunities in order to make informed decisions and develop strategies to mitigate risk and maximize value.
4. A definite ability to negotiate
Negotiation is obviously an essential aspect of contract management.
A contract manager must therefore possess excellent negotiating skills in order to obtain favorable terms for their organization. These negotiation skills are not innate: they have to be worked on. A good contract manager needs to be persuasive, assertive and adaptable, so as to always find win-win solutions that satisfy all parties concerned.
5. A taste for the problem-solving approach
By its very nature, contract negotiation and execution are subject to many hazards.
A contract manager must therefore overcome these challenges and unforeseen obstacles throughout the contract life cycle (from negotiation to termination). To achieve this, it is essential for a contract manager to cultivate a taste for challenge and possess solid problem-solving skills. At all times, the contract manager must be able to think critically, analyze situations and propose creative solutions in line with the objectives of the contract and the organization.
Conclusion
Being a contract manager requires a wide range of skills and a combination of qualities. That’s why we often find quite experienced contract managers, with previous experience as project managers, lawyers or buyers.
These 5 qualities – communication skills, attention to detail, analytical thinking, negotiation skills and problem-solving abilities – are essential to success in this role.
However, these qualities are not innate, which means that not everything is lost if you don’t have them all, and not everything is acquired if you do. Cultivating and nurturing these qualities is a key success factor for contract managers, enabling them to manage contracts effectively, mitigate risk and contribute to the overall success of their organization.
