You have legacy contracts you need to migrate to your CLM. But you have no idea what to do or how long it’s going to take.
Why Do You Need to Migrate Your Existing Contracts to your CLM?
Here’s why you need to migrate your existing contracts to your CLM.
1. To centralize contract access and data
Ensuring all your contracts are housed under one roof makes it easy for teams to navigate and peruse through a slew of contracts to find the ones that matter at any given time. It’s a way to prevent oversight and ensure you aren’t missing out on key opportunities. Centralization of data also ensures one source of truth, which minimizes mistakes and lessens confusion.
2. To run key reports
An effective CLM will enable you to run different types of reports that can be valuable to how you manage clients and create a legal workflow. For example, say you need to find out which contracts are expiring. Instead of having to peruse through every single one, a robust CLM will allow you to run search queries to immediately pull up contracts that are expiring.
Running reports with a CLM ensures you’re able to find key data quickly. That way, you lessen your chances of a breach of contract.
3. To manage risk
When you’re juggling so much data, it’s easy for some of it to fall through the cracks and be completely missed—like contract expiration dates—without a solid system to keep it all in check.
Contract management software allows you to add things like tags and so that you stay on top of all your contract management needs. It helps lower costs long-term and potentially gives you better negotiating power.
What are the Challenges with Contract Migration?
If you aren’t careful, the process of contract migration can turn messy rather quickly. In the past, legal teams have managed with a legacy approach to contract migration, which was clunky and inefficient at best. These are only some of the challenges legal teams are traditionally met with.
1. Absence of a well-defined process
One core challenge with contract migration is that there often isn’t a proper plan or process in place to do so. Some considerations for creating a robust process include ensuring that there are business guidelines being followed, and there are provisions to track and ensure compliance.
2. Scattered contracts
Most legal teams rarely take the initiative to store contracts in one centralized place where they can be accessible to key stakeholders. Instead, contracts are often scattered on different platforms—whether that’s Google Drive, DocuSign, or in your emails.
3. Keeping track of different contract versions
Version control is another challenge for contract migration. You need to know you’re always looking at the most up-to-date version, and you need the ability to view any changes as needed.
Best Practices for Successful Legacy Contracts Migration
There are a lot of contract management challenges legal teams run into without a proper system in place to manage them all—especially if you have a huge client base. Here’s how to prepare for contract migration such that it works for your organization and allows you to migrate all your contracts as seamlessly as possible without any data loss.
1. Gather input from stakeholders
Before making any solid decisions about how best to approach contract migration, consider sitting down with stakeholders like your finance team, sales team, and external counsels on what kind of reports they want to see.
For example, you might only care about a few pieces of information for employment agreements (such as Start Date and Annual Salary). However, if you’re dealing with MSA, you will need to capture a lot of information (Governing Law, Contract Value, Products sold). It’s important to get specifics like these down so that your contract migration process makes sense for everyone that will be dealing with these contracts.
2. Create a timeline and set deadlines
Without deadlines, you risk falling behind with inefficient expectations. Each team that is involved with contract management should be part of your migration process so that their needs are met and so that they’re able to do their jobs effectively.
Software like SpotDraft is designed to do a lot of the heavy lifting for you. This includes being able to integrate with various tools like Box, DropBox, or DocuSign.
3. Use a CLM that surfaces contract metadata
Contract metadata is essentially the key information about your contracts such as contract value, and governing law. It’s a useful tool to have as it makes the task of finding contracts that meet specific criteria a lot easier.
Annotating contracts with the relevant data might take some time, but it’s worth doing it thoroughly. This can be a job for an intern or you can designate someone on your legal team to own the task and process of annotating contracts with the proper metadata. That way, contracts will be highly searchable and easy to find at a moment’s notice.
Alternatively, CLM solutions including SpotDraft provide contract annotation as an additional service.
How to Simplify Contract Migration with SpotDraft
One thing’s for sure, contract migration can be a hard and tedious process. Especially if you don’t approach it with a plan in mind and clear deadlines so that everything stays on track. To help with the process, SpotDraft was designed with the tools for legal teams to do their best work and expertly manage their contract needs under one roof. Here’s some input on how exactly that happens.
1. Use SpotDraft integrations and import directly
SpotDraft empowers you to import all your contracts with just a few clicks - simply collate all your contracts and drag it onto the platform. In case you need to directly migrate these contracts from an external source (eg. move all my DocuSign contracts to SpotDraft), that can also be done in a seamless manner using SpotDraft
2. Auto extract features and key terms automatically
Once you’ve imported your contracts, SpotDraft works in the background by auto extracting key data details from your contracts so they are easy to find. The AI-extracted data is further verified by human operators to ensure there are no mistakes.
All your contracts will be searchable with custom tags, labels, and contract details so that you never lose track of any of your contracts regardless of how many you’re handling at a time.
3. Define specific contract permissions
Some contracts are more sensitive than others. That’s why SpotDraft enables you to create specific permissions for select contracts so that you grant access to team members based either on contract type, job function, or other granular details.
This is something that is often not available in a generic CLM where your contracts originally existed.
Manage your contracts with SpotDraft
SpotDraft isn’t your usual contract management tool. It was designed specifically with legal teams in mind to empower them to work efficiently. To do their best work, legal teams need an automated and searchable contract database they can use to pull key information from and store any and all contracts.
Take back control of your time and organize your legal contracts within a system that allows you to create seamless workflows.
Request a demo here and start taking charge of all your contract needs with SpotDraft.