A question I often get: “Is there a difference in managing contracts with a short term focus and a long term focus?”
You bet!!!!
Contracts with short durations usually have very defined timelines and clear deliverables, making it relatively easier to manage and ensure all parties are meeting their obligations. On the other hand, contracts with long durations can be more complex, as they often involve ongoing relationships and evolving requirements and -strategies over time.
When we look outward into the future the further we look in time the less we know for sure what we will need or supply. This time driven uncertainty drives the need for an alternate approach on managing the contract.
When managing long-term contracts, it’s crucial to focus on building strong relationships with all parties involved to ensure clear communication and understanding of evolving requirements. Vital in long term contracts is good procedures and processes on change and partnership.
Additionally, contract managers should regularly review and update the contract to ensure it continues to accurately reflect the evolving needs of all parties involved. Next to that the business should drive the change in needs.
So whether you’re managing a short-term contract or a long-term one, remember to pay careful attention to the specific needs of each contract to ensure its success!
Arjen van Berkum
Arjen van Berkum is a columnist, keynote speaker and motivator, with an eye for business ecosystems, innovation and disruption. In addition to his work as technology and contract management evangelist, he is a visiting lecturer at Delft University of Technology (TU Delft).
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