Case Study: Professionalisation of Oversight & Formalisation of Contract Workflow

Client: A leader in the distribution industry (interior design sector), an established company with over 500 employees.

Business Challenge: The company relied on traditional management methods without adopted procedures. Sales representatives settled most key business matters outside the official system, which, at a scale of 500 employees, generated massive financial and operational risks. A lack of uniform authorization rules led to disputes with suppliers and a lack of control over the process of executing, enforcing, archiving, and maintaining the integrity of contracts.

Implementation: We conducted an audit of the contract conclusion process from the perspective of the departments involved, including the legal department, sales representatives, the management board, and other stakeholders, mapping the path from commercial arrangement to the signing of the document. Based on this, we created a transparent system for entering into agreements.

Implemented solutions:

• End of “verbal arrangements”: Introduction of mandatory templates and approval workflows that prevented the incurring of liabilities without proper authorization.

• Clear division of competencies in the contracting process: Defining who negotiates, who approves the substance, and who ultimately binds the company with a signature.

• DMS Implementation: Implementation of an IT system that “forced” every contract through a standardized, transparent path.

Result: The Management Board regained real control over the company’s liability structure. By eliminating communication chaos and implementing rigid decision-making frameworks, the contract processing became fully predictable and was radically shortened. The risk of incurring unauthorized liabilities was completely eliminated, and the number of legal disputes and discrepancies with contractors, arising from incorrect, off-system arrangements, fell to a minimum.