From automating contracting processes to helping with GRC management, a CLM solution is like a blessing for legal operations across industries. Here’s how:
Smarter contract authoring
One of the most time-consuming tasks for a legal team is authoring stronger and compliant contracts with pre-approved language and clauses. It can take days and even weeks before a contract is finalized and moved to the next stage. This can all change with the help of a contract management software. An efficient CLM tool contains standardized contract templates and clauses for different requirements and equips members from both legal and non-legal functions to assemble and execute legally compliant contracts. This accelerates contract authoring and gives legal operations more time to focus on other high-value activities.
Once the authoring phase is complete, approvals from different stakeholders take up much time in a contract lifecycle. A dependable CLM tool streamlines workflow and approvals and simplifies the process for all parties involved. Users can store, review and approve contracts easily with the help of the approval functionality that loops in multiple stakeholders to work together on contract negotiations. Unlimited files can be attached to a contract management software, and once a request is approved, it is easy to convert it into contract records without losing any data. In addition, task assignments, document tracking, and established notifications ensure accountability and reduce the hassle in the approval process.
Better contract visibility
Gone are the days when legal teams would spend hours locating a particular contract just to find out the stage of its lifecycle or simply invest time in defining processes for each contract. Instead, every stage of every contract can now be visible to all parties involved with the help of a centralized repository in a contract management software. It also enables you to establish benchmarks and KPIs to reform your processes.
Advanced obligations management
Missing contractual obligations is a prominent reason for the loss of business in many organizations. Not anymore! With the help of a proficient contract management software, users get automated reminders, notifications, and alerts that ensure there is never a missed milestone or obligation. The convenience of it is such that alerts can be set depending on preference, such as before or/and on the due date, notification medium, and the frequency of these reminders. A remarkable solution that mitigates risks and increases overall efficiency.
Digital storage gives parties involved the satisfaction of a physically secure contract. No more can contracts be victims of theft or be destroyed physically. With CLM tools, you get to store your contracts on the cloud and move away from the world of papers and shared drives. But what about cybercrimes? Leave that to a CLM solution; not only does it save you physical storage space but alsoensures your contracts on the cloud are secured with multiple layers ensuring complete security.
Comprehensive contract reports
Thanks to efficient CLM solutions, it is now easy to view critical contract information in a blink. A contract management software ensures users get timely reports on status updates, incoming tasks, and contract performances. These reports can be emailed individually, or an automated daily, weekly, and/or monthly schedule can be set up that shares updates via spreadsheets that can be saved and distributed.
Improved insights on risks
Risk rating and risk mapping tools in a contract management software help legal teams identify potential risks and save businesses from huge losses. A risk assessment matrix highlights probable risk patterns from within contracts and any risk exposures that can impact the business. Being aware of potential risk in a particular contract gives organizations the flexibility to choose their way forward.
A digital transformation is the way forward for legal teams looking to improve operations. Adopting technology in the form of a CLM solution can lay the foundation for this transformation.