The big data revolution has changed business forever. But,\ntoday the most successful businesses aren\u2019t necessarily the ones who collect\nthe most data, but the ones that know what data to focus on.\n\n\n\nIf you want to lower costs and improve profits, you are\nbetter off narrowing your focus to three KPIs instead of trying to track twenty\nof thirty different KPIs. \n\n\n\nWhy You Should Limit\nYour Focus\n\n\n\nManagement guru famously said, \u201cYou can\u2019t manage what you\ncan\u2019t measure.\u201d But, today we can measure everything. You don\u2019t have the\nbandwidth to manage everything that you have metrics for.\n\n\n\nIf you want to be an elite contract manager or contract administrator,\nyou will narrow\nyour focus to the three most important contract KPIs. \n\n\n\nYou can delegate the tracking of other metrics [insert link\nto Use These 8 KPIs to Manage Contract Performance] to others, or even stop\ntracking them completely, if you narrow your focus to these three KPIs:\n\n\n\nContracting LifecycleContract Obligations PerformanceAnnualized Contract Value\n\n\n\nContracting Lifecycle\n\n\n\nHow long does it take your organization to move from\nproposal to signed contract? The longer this process takes, the bigger problems\nyou have. Monitoring the KPI will help you become more efficient. \n\n\n\nOver time you will be able to eliminate bottlenecks such as\ninefficient document management, overly complex approval processes,\ncommunication issues between different departments. \n\n\n\nEvery day it takes a contract to be approved and signed is a\nday that the company is missing out on revenue or materials. Your company can\nonly grow as fast as it can get contracts signed with customers, vendors,\nsuppliers, and business partners. \n\n\n\nOne of the best signs of a healthy, growing business is that\nthey have a short contracting lifecycle. \n\n\n\nContract Obligations\nPerformance\n\n\n\nContracts are only valuable when both sides are fulfilling\ntheir obligations. This KPI will tell you if milestones are being missed.\n\n\n\nThe core of your job as a contract manager is to make sure\nthat the company is meeting its obligations. This KPI will tell you at a glance\nhow you are doing. \n\n\n\nYou already know that your company will have to pay\npenalties for missed milestones. But, when you regularly monitor the contract\nobligations performance KPI, you can also spot trends that go beyond simple\nmistakes or operational issues.\n\n\n\nYou may realize that your company is entering into contracts\nthat the firm lacks the capacity to meet. \n\n\n\nStudying contract obligations performance history can help improve current operations and future contract negotiations. \n\n\n\n Get online in minutes, implement in hours, realize ROI in weeks! Easy-to-use, helps you increase productivity, contracts & revenue. Available anywhere, anytime & on any device.Try a Free Demo today! \n\n\n\nAnnualized Contract\nValue\n\n\n\nThe third critical contract performance KPI is the\nannualized contract value (ACV). This KPI allows you to get a sense for the\nrevenues and cash flow of the firm. It also allows you to see if your business\nis making good use of contract renewals or if you have an issue with excessive\nchurn.\n\n\n\nWhen you regularly monitor this KPI, you can also find\nseasonal or cyclical variations that drag down your revenues. \n\n\n\nWith this information, you may be able to find ways to\nincrease revenues during slow months or to spread out contract renewals more\nefficiently throughout the year.