Whether your eye is focused on the bottom line, employee satisfaction, or the overall company health, there is no denying that efficiency matters. With process automation being the norm in this day and age, why not look to one area that remains a constant in any relationship-based organization: contracts.
This is where Contract Lifecycle Management (CLM) steps in – the process of automating the stages of a contract from initiation through to execution. A Contract Lifecycle Management system can improve efficiency by:
- Streamlining the search process,
- Reducing repetitious legal labor, and
- Lowering total execution time.
CLM systems make it easier to search for contracts
Do you ever find yourself trying to locate a contract from 5 years ago that you know has to be around here somewhere? As the single source of truth, CLM systems account for this concern by ensuring that all the organization’s contracts are stored in one place, thereby mitigating the need to scavenge your coworkers’ desktops to find the contract that you’re looking for. Depending on the selected tool your company utilizes, additional filtered search and versioning features may exist as well. With less effort devoted to retracing a contract’s path over a period of time, more energy can be spent furthering you and your company’s business goals.
CLM systems reduce the need for monotonized legal work
As a result of standardized verbiage, pre-made templates, and an all-encompassing repository, CLM systems reduce the need for legal teams to re-write and/or edit contracts that have already been reviewed. These systems simplify the process of manipulating existing contracts to fit the needs of a new agreement, while still adhering to approved legal guidelines. Particularly as it relates to contracts that legal sees most frequently, i.e. NDAs, MSAs, etc., CLM systems make it so that the organization doesn’t have to allocate superfluous labor to items that can be completed in real time.
CLM systems bring a contract to execution quicker
Regardless of whether your company’s contract lifecycle bottleneck occurs during authoring, negotiations, or approvals, implementing a system that addresses your company’s most prevalent inefficiencies will nonetheless bring the contract to enactment faster. These tools are designed to support multiple areas of the Contract Management process and can be utilized in such a way where the greatest automation adjustments are applied in the areas in which most change is required. Having a contract reach execution at a faster rate means more secured business, accelerated revenue, and increased trust between parties.