KPIs for Contracts

KPIs for contracts or contracting are not something that get discussed much.

But, if you were to design a set of ideal characteristics for your contracts/contracting process, what would they be?

Here is a starter for a sales-side contract (assuming that this is a contract that will get negotiated).

Initial phase:

• It is to the point. It is not full of legalese taking up time and space.

• It covers all the relevant issues.

• The client finds it easy to understand.

• The client sees it as fair and reasonable.

As a result:

• It creates the minimum amount of friction with the customer.

• It gets signed quickly.

What it achieves:

• It secures your revenues.

• It secures your margin.

• It deals with potential upsides, so you maximise your return.

• It protects your business from any downsides.

Post-signature:

• It is well-structured and easy to understand, so it makes contract management easy.

• It makes contract extensions easy.

• It makes upsells and cross-sells easy.

17 June 2025