Contract management is booming. More and more companies, in every sector, are recruiting contract managers able to steer their contractual commitments and secure their relationships with partners.. as well as their project margins. This rise is explained by the growing complexity of contracts, the multiplication of international projects and the pressure to optimise cash and preserve margins.
The logical consequence: the profession is attracting a growing number of people looking to change career. Lawyers, buyers, engineers, project managers and sales people all see it as a chance to move into a cross-functional, strategic role. But how do you make that transition a success? What are the essential strengths for thriving in the role? Let us look together at the keys to a successful move into contract management.
I. Why become a contract manager?
Moving into contract management? What an odd idea! Before taking the plunge too quickly, it is essential to know yourself well and to question your deeper motivations. As with any career change, the choice must be made for the right reasons.
If your only motivation is the appeal of a possible pay rise, you are likely to be disappointed quickly! Contract management is certainly a function that is increasingly valued, but the job demands real personal investment. The learning curve can be steep, and expertise (and an expert's pay) is not acquired overnight.
a. Loving the contract, the raw material of the job
It may seem obvious, but the heart of contract management is... the contract. This document, often lengthy, sometimes indigestible and above all packed with subtleties, is the basis of everything a contract manager does. If digging into a contract, analysing and interpreting clauses bores you, it is better to look elsewhere.
Be careful, though: loving the contract does not mean you have to be a lawyer or a contract law expert to succeed. On the other hand, to last the course and become a good contract manager, you must enjoy contractual logic, understand the importance of every commitment and be able to project operational reality into a contractual framework.
b. Enjoying people and interface roles
We repeat it (too) often: a contract manager is not a lawyer. The role is not limited to decoding clauses. It is above all about smoothing the interactions between the various stakeholders: the legal department, operational teams, buyers, clients, suppliers, and so on. A contract manager must know how to listen, negotiate, defuse tension and sometimes even act as a mediator.
If you prefer to work alone behind your screen without too much interaction, contract management is probably not for you! Conversely, if you enjoy moving between departments, understanding what each one expects and building bridges between teams, then you are on the right track.
II. How do you become a contract manager?
This is a question we are often asked. The good news is that there is no standard route and no ideal profile for becoming a contract manager. The bad news (or good news, depending on your perspective) is that there is no miracle recipe either. Moving into contract management requires a combination of learning, hands-on experience and adaptation.
a. Train and keep informed
Even if you already have experience in managing contracts, you need and will keep needing to professionalise yourself (ideally on a continuous basis!). There are now dedicated courses (we cover them in this article), ranging from specific certifications to specialist master's degrees. They help structure your knowledge and acquire proven methods.
Beyond training, there are also reference books. They are an excellent way to become familiar with good practice in the profession. Among the essentials are "Le contract management" and "Practical contract management" which gives both an operational and an English-language reading of the subject.
b. Start with a trial run
If you already work in a company that handles complex contracts, one of the best strategies is to volunteer for contract management assignments. Whether on the client side or the supplier side, there is no shortage of work, so your offer should be well received! This lets you test the job for real, gain experience and see whether you feel comfortable in the role.
You can start by working alongside contract managers on cross-functional topics, contributing to risk analyses, or getting involved in managing and preparing claims. This immersion lets you build up gradually without taking any risk. But beware.. try contract management and you will be hooked!
III. Starting out as a contract manager: DO'S & DON'TS
Beyond the technical skills, on which you can count on your colleagues' indulgence when you are starting out, mindset is essential in contract management. Here are a few golden rules to avoid beginners' mistakes.
a. the "do's": adopting the right mindset
- Cultivate your curiosity: every contract is unique. A good contract manager seeks to understand the context, the business stakes and the risks specific to each project, rather than applying a method or a process by the book.
- Listen: the best contractual solutions often emerge from constructive dialogue with stakeholders. Avoid hasty judgements and take the time to understand what everyone needs.
- Know what you do not know: in contract management, arrogance is a trap. Even after several years' experience, it is essential to assume you never know everything. Humility and self-questioning are your best allies.
- Talk to experienced contract managers: one of the best ways to understand this job is to talk to those who do it every day. Do not hesitate to contact contract managers on LinkedIn, take part in webinars or join specialist groups. This gives you a concrete view of life on the ground and helps you picture yourself in the role.
b. the "don'ts": avoiding the classic pitfalls
- Trying to impose a single stance: some contracts call for a flexible approach, others for a firmer line. You have to adapt to the context and act as a true chameleon of contracts
- Relying on your background: this is the classic mistake made by career changers! They sometimes tend to apply the reflexes of their original field: former lawyers must step back from the law and adopt a more business-minded approach, former engineers must be careful not to take the project manager's place, since a contract manager supports the project rather than running it, and former buyers must understand that contract management is not just commercial negotiation!
- Neglecting education: while contract management is in theory everyone's business, the reality in practice is somewhat different. Running one contract awareness session does not mean everyone has understood and absorbed the subtleties of the contract, and running an awareness session once a year will not make project teams adopt a proactive approach to contract management. The reality is that you have to spread this contract management culture constantly, with as much education as possible, so that it filters through and takes hold across your organisation.
Conclusion
Contract management is a demanding function, but a fascinating one for those who like a challenge. Making a success of a career change into this field requires genuine reflection beforehand, a willingness to train and the ability to adopt the right mindset.
If you are curious, enjoy contracts as much as human interaction and can show flexibility, this career change could be a great opportunity. And who knows: in a few years' time, you may be the one advising the next generation of contract managers changing careers.