Posted by Cannelle Magdane ● 4/6/21 11:23 AM
Why Should You Automate Your Contract Management?
Is your understaffed in-house Legal team struggling to keep pace with the volume of contracts they have to review and your Sales team is tired of waiting days, if not weeks, for legal approval? A Contract Lifecycle Management solution can make both their life easier and shorten your contract cycle by 50%!
What is a CLM?
Contract Lifecycle Management (CLM) solutions automate and streamline contract processes at every key stage: creation, negotiation, approval, execution, ongoing management as well as renewals. With a CLM solution, the management of client contracts, supplier contracts, partnership agreements, M&A and corporate agreements or even employee contracts become easy.
Law firms have been equipped with dedicated technology for a long time, but until recently in-house legal departments had been left on the side with no proper technology to make their life easier. But things are changing, the CLM market is booming and digital contracting is the future for in-house legal departments. With a CLM, legal teams will be able to do more with less, freed from tedious and repetitive work they will be able to focus on business critical issues and become essential partners to the business.
What are the key benefits of a CLM for your business?
- Self-service contract creation. A CLM offers templating and document assembly features allowing your sales and business teams to generate contracts autonomously from pre-approved templates and alternative clauses, with as much liberty or control by your legal team as you decide. Never again an outdated NDA or SOW will be sent to a prospect!
- Management of templates and clauses. With a CLM, your legal team will manage templates and pre-approved alternative clauses in one single place with history tracking and a dedicated approval process to ensure any change to a template or clause is approved by the relevant persons.
- Real-time collaboration for a faster contract turnaround. A CLM will enable your legal team and sales team to collaborate more effectively on a contract, shortening the review and redline cycle. Real-time collaboration, while still rare, is undoubtedly the best to ensure a smooth collaboration.
- Versions management and comparison tool to ease and track contract negotiation. Negotiating a contract involves two or more parties and it can get tricky quickly, with versions after versions being exchanged. A CLM will allow you to properly store each version and to easily compare between any two versions. No more wondering if you are working on the correct version or what was your original proposition on a clause.
- Safeguard of emails and attachments. Sometimes saving the contract itself (and its versions) is not enough, to truly protect your company you want to save all emails and attachments exchanged between the parties during the negotiation. A CLM should integrate with your email provider (Gmail, Outlook,etc.) to allow you to seamlessly import emails and attachments and link them to the proper contract or client/supplier for safekeeping.
- Automated approvals triggered by predefined conditions (contract value, type of contract, etc.). A CLM will allow you to drastically reduce compliance risk by automating your contract approval process. No more contracts going out for signature without the proper approval! From a simple approval by a legal counsel for an NDA to a complex approval process involving legal, business and financial top executives for an MSA, it will always be seamless for both the requester and the approvers (even if they are on the go!).
- Integration with E-signature tools. A proper CLM will be tightly integrated with the main e-signature tools on the market (Adobe Sign, Docusign, etc.), enabling you to easily send contracts for signature, track that they have been properly signed and stored in the right place. You won’t discover after providing your services that your counterparty actually never signed the contract you sent them!
- One central contract repository. Your teams will no longer spend hours locating a signed contract (hoping it was not deleted if their colleague who handled the signature left the company). All your contracts will be easily accessible in one single place, with granular permissions so that only the right person can access the right contract!
- Post-signature contract management. A CLM will allow you to set up alerts and email reminders to never forget a renewal or key event anymore.
- Analytics and reporting. With customizable dashboards and reports, a CLM will allow you to have a global view on all your active contracts, highlighting the exact data you need! Reporting to top corporate executives or auditors will finally be effortless, no longer distracting your legal team from their actual job.
Some CLM solutions focus only on the post-signature phase (contract repository, post signature management and analytics) while others will help you at every stage. But the best CLM solutions should offer various options to adapt to your urgent needs while being able to evolve with you as you structure your business processes further.
From a simple yet smart contract repository to a full CLM solution, AODocs' cutting edge technology can adapt to your current needs and grow with your business!