Introduction
The contract manager role (or “gestionnaire de contrats” in French) is playing an ever more important part within companies. Once reserved for large groups, contract managers are now commonly found in SMEs and mid-sized companies.
Like other “new” professions, there are still few dedicated initial training courses in contract management (the European School of Contract Management is a must). Even so, the role calls for a combination of skills and qualities that are essential. In this blog post, we explore five essential qualities that every contract manager absolutely must possess.
1. Strong interpersonal skills and clear communication
Relationships and communication are at the heart of contract management, perhaps even more so than drafting skills.
A contract manager must be able to express their views clearly, defend their position and deliver messages with tact and impact in order to negotiate contracts and resolve disputes and pre-disputes. Solid oral and written communication skills are therefore essential to build relationships with stakeholders, understand their needs and make sure every party is on the same wavelength.
2. Thoroughness and attention to detail
Contracts are often made up of a set of documents (general terms and conditions, appendices, and so on) which make them complex and therefore demand meticulous attention to detail.
A contract manager must have an eye for potential risks, gaps and inconsistencies. This attention to detail is indispensable during drafting and negotiation, to make sure the provisions of the contract are consistent and workable and that risks are controlled, but also during performance of the contract, when tracking and controlling milestones, deviations, delays and other contingencies calls for action as early as possible.
3. A critical and analytical mind
Contracts often contain legal jargon and complex financial terms. On top of “hard skills” in contract law and finance, a contract manager needs solid analytical skills to interpret and understand those terms and to find solutions or alternatives when they are unfavourable to the company they represent.
More broadly, a critical and analytical mind makes it possible to spot trends, risks and opportunities in order to take informed decisions and develop strategies that mitigate risk and maximise value.
4. Genuine negotiating ability
Fairly obviously, negotiation is an essential aspect of contract management.
A contract manager must therefore have excellent negotiating skills in order to secure favourable terms for their organisation. These negotiating skills are not innate: they have to be worked at. A good contract manager must be persuasive, assertive and adaptable, so as ultimately always to find win-win solutions that satisfy every party concerned.
5. A strong taste for the problem-solution approach
By their very nature, the negotiation of a contract and its performance are subject to many contingencies.
A contract manager must therefore overcome these challenges and unforeseen obstacles throughout the contract lifecycle (from negotiation to close-out). To do so, it is essential that a contract manager cultivates a certain appetite for challenge and has strong problem-solving abilities. At any moment, the contract manager must be able to think critically, analyse situations and propose creative solutions in line with the objectives of the contract and of the organisation.
Conclusion
The contract manager role requires a wide-ranging skill set and a combination of qualities. That is precisely why contract managers are often fairly experienced people, with previous experience as project managers, lawyers or buyers.
These five qualities (communication skills, attention to detail, analytical thinking, negotiating ability and problem-solving skills) are essential to succeed in the role.
That said, these qualities are not innate, which means all is not lost if you do not have them all, and nothing is guaranteed if you do. Cultivating and maintaining these qualities is the key success factor for a contract manager seeking to manage contracts effectively, mitigate risks and contribute to the overall success of their organisation.