Modern enterprises manage between 20,000 to 40,000 active contracts at any point. Contract management can be a lot of hard work, making the skilled contract manager's role very important.  Having certain contract manager skills can, however, make the job easier.

Successful contract managers have both technical and non-technical skills that help them excel. Legal expertise, financial wisdom, technology proficiency, and risk management are a few.

Here are the top 10 key contract management skills to help you stand out among the top contract managers. Read on to find them out and become a skilled contract manager!

The Role of Contract Managers

A contract manager ensures the success of an organization by aligning business transactions with established policies. They also ensure their decisions are profitable. 

However, to achieve this, contract managers must understand the organization's business structure well. Not only that, contract managers must also provide legal support to various departments to fulfill company goals.

Your role as a contract manager is fairly broad, cutting across departments and hierarchies. However, there are specific duties that are more common today:

1. Oversee the initiation, negotiation, and execution of contracts
2. Monitor compliance
3. Keep financial and reputational risks minimal
4. Develop good relationships with strategic partners, suppliers, and other relevant third parties
5. Resolve any issues that arise between internal teams and business partners during the contract lifecycle
6. Maintain a secure and readily accessible repository of all contracts—past and present

Technical contract management skills

You cannot do without technical skills if you are managing contracts. A comprehensive and practical understanding of legal, financial, and business strategies is needed for secure and profitable contracts.

1. Legal expertise

Whether you're exploring a career in contract management or shifting from commercial law into an in-house legal role, a strong and practical legal understanding is a must.

This encompasses knowledge of industry-specific contract laws, including policies around buy-side and sell-side contracts, lending and borrowing, leases and rental agreements, or partnership contracts.

You'll also need to have a solid grasp of contract risk management—how to identify potential legal pitfalls and strategies for keeping them minimal.

2. Digital technology

The contract management industry has undergone significant digital transformation recently, with the emergence of innovative software solutions.

‍“It's good for a SaaS lawyer to be tech-savvy because it helps to know what tools are at your disposal and how to use them best. Go to the people who know how to use these tools well and ask them if it's possible to set up the workflows/automations you want within them.”
~ Sue So, Head of Legal, HopinCommercial Contract Management in Hypergrowth Startups

Automation has been at the forefront of contract management technology, helping businesses close contracts more expeditiously. Top-performing contract managers are well-versed in contract management tools and how to use them to manage an ever-growing volume of contracts.

Some of the things you can do with contract management tools include templatizing high-volume contracts, automating workflows, tracking execution, a centralized repository, and more.

Also read: The Basics of Contract Management Software

Also read: 8 Top Contract Management Software Platforms

3. Data analysis

Expert contract managers can easily spot a wealth of information in a pile of contract data. This is a crucial contract management skill, as you will be required to demonstrate how your operations have contributed to the organization's overarching objectives.

By mastering data analysis, contract managers are able to get specific insight into contract processes like average TAT for approvals, duration of negotiations, most profitable contracts, and more.

This enables them to identify bottlenecks, optimize processes, close more deals, and ultimately generate more revenue for the organization.

Also read: How to Uncover Insights with Contract Analytics Software.

4. Business and finance acumen

“Law firm business models are typically reliant on their employees’ billable hours but the work of an in-house team hinges on business requirements and how effectively their legal advice can be practically implemented or applied.”
~ Harry Borovick, Senior Legal Counsel, LiveRamp
SpotDraft Counsel Corner: Starting Right, as an In-house Professional

A contract manager is essentially a business expert because contracts are core to business. With business skills, you can explore an organization's existing business infrastructure, spot opportunities for maximizing ROI, and proactively detect potential risks.

You're skilled in managing finances and commercial transactions and clearly understand how contract management generates ROI. By highlighting your role in the company's financial growth, you're ready to help achieve more success.

Non-technical contract management skills

Non-technical skills comprise attitudinal and interpersonal attributes. They’re more generalized but are still crucial in helping you deliver your duties effectively.

1. Negotiation Skills

The best contract managers are skilled in the acts of persuasion and negotiation. They know how to ask the right questions and influence specific actions during contract negotiation.

After the internal contract initiation and approval phases, a company typically presents its offer to the other party for negotiation. This can take anything from a couple of hours to days and even weeks.

To close more deals as a contract manager, you need to master how to communicate offers, requirements, and other vital elements of a contract in a way that's easily digestible for the other party. Successful contract managers also know how to leverage technology to streamline and expedite negotiation processes.

To get more efficient and cut down negotiation durations, you can create standardized contracts, including fallback positions for commonly negotiated clauses.

Also read: Choosing the Right Contract Negotiation Software

2. Conflict resolution

Contracts come with inherent risks of misunderstanding and conflicts. When these occur, how do you de-escalate the situation and ensure both parties are happy?

This is an incredibly valuable skill that successful contract managers have. Sometimes, the conflict can be internal. A great contract manager leverages their listening and problem-solving skills to dissect the situation, find solutions, and keep things under control.

3. People management

“Many great lawyers suck at managing people. It is just not the way their brains are wired. And when you put bad people managers in charge of people, it can be a disaster.”
~ Sterling Miller, CEO and GC at Hilgers Grabens PLLC
Ten Things: How to Manage People and Lawyers 

People management is a very complex skill to master, as every individual is unique in strengths and weaknesses.

A good contract manager is skilled at delegating tasks to the right talents, resolving conflicts, motivating low performers, and communicating with stakeholders.

Another skilled possession is managing business relationships and balancing the need to defend the company's interests. All of this while ensuring their partners remain satisfied. 

4. Attention to detail

While technology has made it easier to spot errors and missing elements through redlining, a great contract manager understands that having great attention to detail is paramount to creating contracts that bring value.

Top contract managers are thorough and always looking for typos and hidden clauses, as missing these can pose enormous company risks. 

You could also leverage contract lifecycle management software with the capabilities to help you redline and even ensure version control.

SpotDraft has integrated Microsoft Word as the primary contract editor on the platform. Learn more at SpotDraft.com/word.

5. Organizational skills

Contract managers typically handle high volumes of contracts, monitoring and tracking every phase. Staying organized in the middle of all this is mission-critical as you don’t want to get overwhelmed and burned out. This is a skill that top performers have mastered.

Again, SpotDraft has made it a lot easier to stay organized, whether you're managing 100 or 10,000 contracts at any given time. But technology is not meant to completely replace existing skills. It is only meant to make you more efficient.

Contract manager: Job description

As a contract manager, you will be responsible for overseeing the entire contract lifecycle, from negotiation to execution and renewal. You will ensure that all contracts align with company policies, mitigate risks, and support the organization’s business objectives. Your role will require a blend of legal knowledge, business acumen, and excellent communication skills to manage contracts effectively and maintain positive relationships with internal and external stakeholders.

Key responsibilities of a contract manager

• Contract negotiation and drafting: Negotiating, contract drafting, and reviewing contracts,  to ensure they are legally sound, align with company goals, and mitigate risks
• Contract lifecycle management: Manage the entire contract lifecycle, including initiation, approval, execution, renewal, and termination. Maintain a secure, organized repository of all contracts
• Compliance monitoring: Ensure all contracts comply with applicable laws, regulations, and company policies. Monitor and enforce compliance throughout the contract duration
• Risk management: Identify potential risks in contracts and develop strategies to minimize exposure. Regularly assess contracts for compliance and risk management
• Relationship management: Build and maintain strong relationships with key stakeholders, including clients, suppliers, and internal teams, to facilitate smooth contract execution and dispute resolution
• Performance tracking: Monitor contract performance against agreed terms and conditions, and take corrective actions when necessary. Provide regular reports on contract status and performance to senior management
• Legal support: Provide legal advice and support to various departments within the organization, helping them understand contract terms and implications‍
• Process improvement: Continuously evaluate and improve contract management processes to enhance efficiency and effectiveness

Education and experience for contract managers

What is the education required to become a contract manager?

• Bachelor’s degree: A bachelor’s degree in law, business administration, finance, or a related field is typically required. This provides a solid foundation in legal principles, business operations, and financial management, all of which are critical to effective contract management.
• Advanced degree (Optional): A master’s degree in law (LL.M.), business administration (MBA), or a related field can be advantageous. It offers deeper knowledge and can make you more competitive in the job market, particularly for senior roles.
• Certifications: While not always required, certifications in contract management, such as those from the International Association for Contract & Commercial Management (IACCM) or the National Contract Management Association (NCMA), can enhance your qualifications. These certifications demonstrate a commitment to the profession and provide specialized knowledge that can be beneficial in your role.

What is the experience required to become a contract manager?

• Relevant work experience: Employers typically require 3-5 years of experience in contract management, legal roles, procurement, or related fields. This experience should include contract negotiation, drafting, and lifecycle management. Experience in a specific industry (e.g., technology, healthcare, finance) can be particularly valuable.
• Legal experience: If your background is in law, experience in commercial law or in-house legal departments is highly relevant. This experience helps in understanding the legal intricacies of contracts and ensuring compliance with laws and regulations.
• Business experience: Experience in business roles that involve contract management, such as procurement, vendor management, or sales, is also valuable. This provides insights into the commercial aspects of contracts and how they align with business objectives.
• Technical skills: Familiarity with contract management software and tools is increasingly important as the industry becomes more digitized. Hands-on experience with these tools, as well as proficiency in data analysis and CRM systems, is highly sought after.‍
• Industry-specific experience: Experience in a specific industry can be an advantage, as it allows you to bring specialized knowledge of industry-specific regulations, risks, and best practices to your role as a contract manager.

Common challenges in contract management process

#1 Managing large volumes of contracts

Handling many legal contracts at once can be tough. You need to stay organized, meet deadlines, and avoid overlooking important details.

To manage this:

• Use contract management software to automate tasks and manage contracts efficiently
• Prioritize contracts based on risk and importance
• Delegate tasks to team members with relevant expertise

Also read: Five contract management best practices to deploy for handling contracts effectively

#2 Ensuring compliance across different jurisdictions

When your company operates globally, keeping up with different laws and regulations is a challenge. Compliance is critical, but it can be hard to manage.

To ensure compliance:

• Keep yourself updated on the legal requirements in each region
• Work with local legal experts to meet regional laws
• Use standardized business contract templates that can be adjusted for local regulations

Also read: What is Contract Compliance? The Ultimate Guide - SpotDraft

#3 Maintaining consistency and accuracy

Contracts must be consistent and accurate. Inconsistencies can lead to misunderstandings or legal risks.

To maintain consistency:

• Use contract templates to ensure uniformity
• Leverage technology like contract lifecycle management (CLM) software for version control and error-checking
• Conduct regular audits to catch and correct errors early

Becoming the top 1%

The difference between average and top contract managers lies in the presence of a strong combination of technical and non-technical skills.

As you strive to rack up successes and join the league of the best contract managers, you ought to stay consistent with self-development and up-to-date with evolving technology trends and how they impact business in your industry.

Indeed, technology is a driving force in the modern business ecosystem, and successful contract managers have leveraged contract management systems like SpotDraft to stay efficient, scale contract volumes, and generate more revenue for their organizations.

Want to learn how SpotDraft can help make you a better contract manager? Request a demo.