Why Companies Struggle with Contract Follow-Through
Written By: Aryeh Da Costa
Introduction
For many SMEs, the real challenge in contract management begins after the contract is signed. Up to that point, the process is usually structured Legal drafts, Procurement negotiates, Finance reviews, and eventually someone signs.
But once the contract enters the operational phase, structure fades and reality sets in.
Deloitte highlights that the post-award phase is consistently the weakest and least managed part of the contracting lifecycle, even in mature organisations
That weakness shows itself in predictable ways.
Spreadsheets Were Never Designed for Contract Lifecycles
Most SMEs rely on Excel to manage their contracts. It works for a small number of agreements, but quickly collapses when:
- Multiple people edit the file
- Dates need updating
- Obligations need tracking
- Reminder logic becomes complex
- Documents live elsewhere
Excel is a brilliant analysis tool, but not a workflow engine. The cracks show as contract volume grows.
Contracts Disappear Across Systems and People
In most companies, contracts are stored in:
- Shared drives
- Email inboxes
- Personal folders
- Archived desktop files
- Team-specific cloud storage
- Old devices
This fragmentation makes it almost impossible for teams to see what’s active, what’s due, and what’s at risk.
Ownership Becomes Unclear the Moment the Signature Happens
Before signature, a contract belongs to everyone.
After signature, it often belongs to no one.
Is it Legal? Procurement? Finance? Ops?
Deloitte notes that this lack of post-award governance is a leading cause of:
- Missed obligations
- Incorrect billing
- Unmonitored compliance
- Supplier underperformance
Without ownership, even the best-negotiated contracts drift.
Manual Reminders Fail Under Real-World Conditions
Calendar reminders and sticky notes work until:
- Someone is sick
- Someone leaves
- Someone forgets
- The calendar is full
- The reminder goes to the wrong person
- A contract date changes but the reminder doesn’t
Manual systems break silently, and SMEs often discover this only when a renewal or obligation is missed.
Teams Don’t Have Time for Follow-Through
Post-signature management is often nobody’s primary job.
It happens between meetings, after hours, or “when we get time.”
But contracts don’t wait for available time, they operate on fixed dates.
Leading organisations recognise this tension and remove the burden by automating the low-value work: tracking, reminding, notifying, escalating.
A Simpler Way Forward
SMEs don’t need enterprise-level CLM platforms. They need:
- Centralised storage
- Clear ownership
- Automatic reminders
- Basic obligation tracking
This alone eliminates most follow-through failures.
When follow-through becomes a system, not a memory exercise, organisations regain control over risk, cost, and performance.
