When most companies think of contract management benefits, they think of documents, files, email chains, and e-signatures. Here’s why it’s so much more than that.
Contract management is on the rise in popularity. As almost every business process becomes automated, contracts are one of the final things companies turn to as they embrace digital innovation. More and more buzz is centering around why every company needs to be paying more attention to their contract management.
So what does automating contracts mean for an organization? A contract management platform should have many enticing features, such as online redlining and negotiation, approval workflows, e-signatures, and more. But at its core, implementing a contract lifecycle management platform isn’t about features. They’re nice for day-to-day users and anyone who needs to sign a contract, but the C-level wants more than just nice features: they want more efficiency and a core process change.
Contract management done well means just this—an optimization and automation of a business process. This involves adoption of a new system, implementation, and training. But in the end, automation of what used to be manual tasks. Process changes means more efficiency and equipping employees with the tools to do their jobs better, faster, and smarter. A contract management platform increases the ability to spend less time on aspects of work that can be automated and more time focusing on projects that have a direct impact on business-moving metrics.
Efficient contract management also frees up valuable employees to move away from administrative work and become more strategic. Not spending time entering numbers or typing out emails allows employees to spend more time focusing on increasing revenue, getting more deals, and maintaining compliance.
Contract management also increases communication and collaboration across an organization. While Sales may rarely talk to Legal in a normal context, or perhaps only if an issues arises, with a contract management process, sales teams know they have to get every contract approved through Legal–and can get it automated. Simply having the platform in place forces teams to create a contract that is approved by all the necessary parties. The steps to getting a contract are more clear, and the teams are communicating at a strategic, not manual level. Digital communication through a platform is quicker and more efficient, especially with teams spread out across the globe.
This speed in time to signature is imperative when moving in today’s fast-paced business world, yet for many companies, contracts remain the main bottleneck in the process. Even with PDFs, e-signature, and the ability to email or send a file through Slack in seconds, so many different tools and processes are being used every contract looks a little different. Legal is often being pulled in multiple different directions if someone needs a contract approved immediately. Changing the contracting process changes the entirety of the business for the better. A single source of truth for all contracts is what allows companies to move faster while remaining compliant, and ultimately, gain more revenue and grow the business.
With contracts as the source of relationships and revenue in a company, it’s important they’re given as much attention and innovation as every other aspect of business. What is your organization doing with contracts to expand the business?