With businesses expanding globally and working towards gaining a competitive edge, core functions such as legal which support them are still treading on the traditional path.
Enterprises having numerous contracts, from critical NDAs to vendor contracts to sales agreements embroil in-house counsels to manage the entire lifecycle process for each contract initiating from its draft to negotiation to review to renewals. A single misstep in any of these processes can lead to huge financial loss and possible risks for enterprises.
To keep a strong and continued relationship with partners, vendors, suppliers, etc. enterprises need robust contract management software to not just streamline the contract lifecycle process but also derive actionable insights supporting strategic business goals.
Legal departments are still wedged in the sustenance phase where almost half of their time (48%) is spent in administrative work and resolving queries to business users, leaving only 29% of their time to become an enabler of broader strategic goals. From authoring, negotiating terms for new agreements or renegotiations with expiring contracts to ensuring regulatory compliance to contractual terms and clauses, legal is stuck in tedious manual work, thereby making them time-constrained towards broader strategic and advisory roles.
Contrary to the prevailing belief where contracts are seen a one-time activity; executed, stored and forgotten in a file cabinet, agile legal departments are treating contract management as an ongoing process with better visibility on key obligations, error-free drafting with pre-defined templates in a clause library, and risk mitigation with real-time reports and analytics.
Legal departments are implementing integrated contract management software that enables them and other stakeholders such as sales, procurement, HR in not just automating the entire lifecycle of contract management but also streamlining the process, allowing better visibility into the hidden risks and gaining better control over the contractual process to keep up with the growing regulatory and compliance challenges.
Typically, negotiations on a contract from several departments and numerous approval levels take place on emails which can often lead to multiple versions of the same contract without a proper track of all the changes made. Implementing contract lifecycle management software empowers legal departments to not only compare numerous copies of the same contract on a single platform, but also keep a trail of every change made to the document and store the multiple copies securely in a centralized repository.
Legal with a contract automation software is able to view the no. of contracts and requests that the enterprise have, and the status of each contract whether they are stuck in negotiations or approved, how many are active and renewals/expiration of each contract, various types and templates generated and overall financial impact of contracts on the company.
Contracts act as a repository of important information for an organisation and while on one hand business users are concerned about commercial and operational contract data, legal professionals are always looking for data related to contractual risks. But searching for data among thousands of contracts manually will not only be error-ridden but also make the organisation prone to legal and compliance risks. Therefore, the need for automated solutions is imperative and a robust contract management platform with a contract analysis feature enables legal to extract data from current as well as legacy contracts to make sure all the contractual obligations are met.
A comprehensive analysis report will also enable GCs to gain insights into the risk associated in each contracts and uncover hidden costs, hence allowing them to make informed strategic decisions impacting business.
With automated contract lifecycle management software, legal departments have a better insight on their entire contractual process in terms of tracking the overall turnaround time and improved efficiency. The risks associated with inept contract management strategy are not only financial but also reputational and vendor loss. An integrated platform such as PracticeLeague Contract Lifecycle Management enables the legal to not only avert these risks but also create a proactive risk culture by easily managing contracts throughout the entire lifecycle, from initiation to termination. The platform automates the entire contract management by turning documents into valuable data to help avert risks and ensure compliance with contractual obligations.
With organisations having to deal with thousands of contracts with each of their unique set of risks and obligations, it becomes difficult to keep a track, view and comply to them manually without having a system for regular reminders and alerts, making enterprises prone to penalties and vendor loss.
To manage such an overwhelming number of contractual obligations, an enterprise needs a tech-enabled solution that provides alerts, reminders, and act as a secure repository of all contracts and supporting documents. With PracticeLeague Contract Lifecycle Management software in-house counsels can copy and store all obligations and compliances associated with every contract to reduce legal and business risks.
The PracticeLeague Contract Lifecycle Management Platform increases the efficiency of the team and standardizes the contractual process in an organization. The solution also increases the visibility of the endend spectrum of the contracts to mitigate risks and adhere to compliance in turn helping the organization to be cost effective.