When to onboard a contract lifecycle management solution?

Is your legal team stuck with neck-deep work, most of which can be easily automated? Are issues like outdated templates, uncontrolled versions, and a lack of precise language common pitfalls for your legal team?

You probably wouldn’t have automated your contract management system. Doing so will help your organization comply with changing customer expectations and business needs. There are far more benefits of implementing contract lifecycle management software beyond the obvious. 

This article will go over:

Let's examine.

What is contract lifecycle management (CLM)?

A CLM solution helps you minimize contract risks and improve the efficiencies of your legal team. It overcomes the problems you face with traditional contract management without automation. CLM software has evolved over the years from mere record-keeping solutions. 

A modern contract lifecycle management software goes beyond legalities and audits to help organizations overcome contract and revenue risks. Legal teams no longer have to run the usual errands that hamper their productivity. CLM systems add a new dimension and simplify contract management for your business.

Are you facing these traditional contract management challenges?

Shoddy contract management practices can cost a business 9.2% of its revenue annually. Let’s dig deep into why that happens. Furthermore, see if your business faces any of the below challenges.

  • No standardized language
    Capitalization of words, incorrect terms, faulty tenses, and other grammatical mistakes increase risk exposure. The counterparty can exploit these loopholes to put your business in a quandary. It could lead to non-compliance issues and revenue loss.
  • Lack of visibility
    Chances of bad visibility remain high when more individuals are part of the contract lifecycle. A lack of standardized procedure can also make locating contract documents difficult. There is little to no control over managing contracts better in such cases.
  • Difficulties with change management
    There can be several changes to contracts related to policy, pricing, and renewals. Managing them manually can be cumbersome without efficient procedures. Communicating these changes to stakeholders and implementing them in time is critical to keep the business afloat.
  • Compliance failures
    You may win tens and hundreds of contracts, but that’s only the beginning. Tracking contracts post-execution to meet the obligations is crucial. A lack of SOPs increases the risk of non-compliance and costs.
  • Lack of productivity
    Managing contracts manually can be inefficient. Your legal team could lose a lot of time locating documents, ensuring compliance norms, and engaging in back and forth with stakeholders.

Why should your business digitally transform its contract management system?

With pandemic being an accelerator of digital transformation, overhauling your contract management systems is no longer an option.  According to a study, 91% of businesses have adopted or plan to adopt digital business initiatives. Your business can no longer afford to stay behind the digital curve.

Businesses with manual processes are at severe risk of disruptions. Even if you are convinced about adopting new technologies for your business, choosing the apt implementation strategy is crucial.

A contract lifecycle management solution is ideal for your legal and sales teams as it helps them streamline workflows, enhances processes, and improves collaboration quickly. CLM software can help you transform a contract management system into an agile function.

Advantages of using a contract lifecycle management solution for your business

If you are still wondering whether your business needs a CLM system, here are some reasons to help you decide.

  • Acts as a one-stop contract repository
    Your business might be dealing in hundreds of contracts. Locating these can be a hassle if you do not have an organized system. Contract lifecycle management system acts as a centralized repository of contracts. It enables seamless accessibility for your legal team by enabling both internal and external stakeholders to access, share and manage documents at ease.
  • Enhances user experience
    Each process in the contract lifecycle gets automated. It minimizes risks due to human error that could lead to compliance and cost issues for your business. The simplified access and management of contracts lead to an improved user experience. 

    Your legal team can also enable improved transparency for all stakeholders. For example, managers can still track the contract details irrespective of the person drafting the contract. There is no need to involve people or get different documents to verify activities.
  • Reduces contract TAT
    Lengthy processes such as manual contract redlining consume your resources and don’t lead to increased revenues. CLM solution features like contract redlining software reduce the critical turnaround time (TAT), enabling faster closing of the deals. 
  • Improves engagement and collaboration
    Contract review processes involve multiple stakeholders and approvals. It is a resource-intensive process that increases the sales cycle time. CLM solutions help overcome this problem by making the entire process collaborative. You can create dynamic workflows and involve only the relevant people in the process, thereby reducing the back and forth to get faster contract approvals. 
  • Enhances compliance
    Meeting compliance can be a hassle if you have an unorganized contract management system. Contract lifecycle management software helps you enable consistent processes that lead to improved efficiencies. You can also keep the contract language consistent to avoid legal issues arising out of that. Compliance with vendor terms leads to better contract obligations and lasting business relationships. 

Get started with SpotDraft’s contract lifecycle management solution today

SpotDraft is a modern-day contract management solution that offers excellent customization and works around your specific business needs. Here are five steps to simplify your contract journey and experience the power of automation like never before.

  • Import
    You can import any contract in a few simple steps no matter what database you use. What’s more, you can search any clause within contracts with the help of intuitive search functions.
  • Create and analyze
    Our library of templatized contracts allows you to create agreements in various formats. You can also analyze incoming contracts to check errors that could prove costly after contract execution.
  • Collaborate
    Improve cross-team collaboration through the intuitive dashboard. Your teams can add notes and comments for easy reference. Furthermore, reminders ensure no one misses out on deadlines. Version control function further ensures everyone stays on the same page instead of locating the latest version of the document.
  • Approve and execute
    Contract approval and execution are more seamless than ever before with e-signature integrations. Your stakeholders can sign documents on the go, leading to a shorter turnaround time.
  • Manage
    You can set reminders for contracts that have approaching expiry dates. Your teams will not miss out on renewals and ensure revenues do not get hampered. The search and storage functions furthermore simplify the user experience.

SpotDraft is the best contract lifecycle management solution for businesses and legal and sales teams. Get a free product demo today to see the software in action.