The adage, do more with less, applies to today’s corporate legal departments with less budget to hire more talent. This means legal operations' reliance on IT vendors to streamline operations...
Behind every good law department is an equally good legal operations team, but what critical roles do they play? These silent partners to the legal team provide a plethora of roles and responsibilities...
The haves and have-nots will always feel the difference when the topic is e-billing solutions in corporate legal operations. This digital transformation in managing outside counsel billing and invoicing...
ELM solutions in the corporate legal department are gaining critical entry into global corporations. As a necessary foundation for efficient legal operations workflow, ELM solutions provide an integrated...
Efficiency and organization in the legal department and law firms drive the pathway to success. Attorney case management software provides one of the indispensable tools for modern law practices, transforming...
Contract lifecycle management tools enable legal teams to automate the contract management process within the corporate legal department. This critical benefit helps streamline the entire contract management workflow -- from drafting and negotiation to approval, execution, maintenance, and renewal.
With a contract lifecycle management system that integrates with an enterprise legal management solution, several key benefits become visible to the legal department, including:
One big value of contract lifecycle management tools is simply the ability to store contracts in one primary and central repository. This enables anyone touching a contract to access it without wasting time seeking files in online folders. Management of contracts becomes easier, and productivity soars among all legal operations and legal teams working on matters.
A central repository and automated contract management system provides the ability to track the status of contracts throughout their lifecycle. Automated alerts can be set to inform decision-makers and lawyers about important milestones in the contract. Reporting on the status of contracts is also made easier with the enhanced visibility of a contract lifestyle management system.
While the words, “streamlined workflows” are overused, in this case, the streamlined workflow of contract lifecycle management tools is real. Those who manage contracts experience common and regular tasks for each one. Contract drafting, set up, review, approvals, negotiations, and execution are many of the steps for each contract. A contract lifecycle management tool enables these steps to be streamlined into simple workflow.
Every company has standard clauses and contract language to protect company policy, adhere to regulations and ensure compliance. Legal operations and lawyers could not manage each document singularly without errors without a contract lifecycle management solution. That’s why having a contract lifecycle management tool in place helps avoid and mitigate risk.
As mentioned above, manual contract management causes errors and wastes time. When contract lifecycle management tools are deployed, the legal team can free up time for higher-value strategic work.
During the evaluation phase of contract lifecycle management, legal operations professionals can explore some of the primary features that enable a streamlined contract experience:
Contract management requires detail. Those who manage contracts in legal departments require contract lifecycle management tools for consistency, accuracy, accountability, version control, and long-term management of each respective contract that links to matters. The stages of contract lifecycle management require contract experts to be mindful of the negotiated clauses, changes to terms and conditions, whether the deal is completely sealed and indicated within the contract, approved by each party, and more.
Below are many of the elements of contract management:
Version control maintains the history of the different versions of a contract This includes modifications, amendments or updates made over time. In contract versioning, each update is marked with a distinct number or code. Versions are given a specific date and time stamp to show when changes were made. This enables involved parties to easily track versions and contract details during negotiation. Basically, version control is necessary to track changes that identify the most recent contract version and to maintain a clear audit trail. This helps avoid confusion, disputes and potential legal issues from outdated or incorrect contracts. Contract lifecycle management software helps organizations effectively manage version control. Document management systems can also be used. These tools provide features like version tracking, document comparison and automated notifications.
Secure access is a critical element of contract lifecycle management. This revolves around maintaining confidentiality and integrity of contract-related information. Security measures around implementation and controlling access to contracts must be in place to control and restrict access by unauthorized people. Every lawyer wants to protect contracts from unauthorized viewing, modification or disclosure. There are various tools to help with document security: user authentication, role-based access control, data encryption. Data loss prevention (DLP) tools are another way to ensure secure access in contract management.
Effective contract workflow management involves establishing a structured and well-defined process for creating, reviewing, approving, executing, and monitoring contracts.To implement workflow, first define clear roles and responsibilities for each stage of the contract, establish timelines and deadlines, and implement automated tools to track the progress of contracts. To streamline contract workflow management, you can use a centralized digital platform, standardized templates and contract lifecycle management tools. Also, e-signatures can speed up the signing process and set reminders for important deadlines.
Contract lifecycle alerts enable organizations to stay on top of important milestones and deadlines throughout the contract duration. These alerts are reminders and notifications for key events such as contract renewals, expiration dates, payment due dates, and performance reviews. Businesses can proactively manage their contracts and ensure timely actions are taken depending upon contract obligations and timelines. Alerts also help avoid missed deadlines, potential penalties and contract disputes. Simply, lifecycle alerts empower contract managers to take crucial measures, such as initiating contract renegotiations or terminating agreements when necessary. Businesses can implement this by selecting appropriate software or tools, configuring alert settings for responsible parties, conducting tests to ensure functionality, and continuously monitoring the system for ongoing effectiveness.
Compliance alerts can be set up on a consistent schedule to help businesses adhere to regulatory requirements, internal policies and contractual obligations, The alerts serve as reminders to proactively monitor and address compliance-related activities throughout the contract lifecycle. In addition, compliance alerts help with certification renewals, compliance audits, and fulfillment of legal obligations. Compliance alerts can be set up within contract management software or integrated systems and customized for specific contract terms and individual roles. This enables organizations to mitigate risks, avoid penalties, and maintain a strong compliance posture.
This element involves the effective organization, maintenance, and utilization of contract templates. The templates offer standardized frameworks for creating new contracts, ensuring consistency and efficiency in the contract creation process. Effective contract template management also includes version control, ensuring that templates are regularly reviewed and updated to reflect changes in laws, regulations, or internal policies. For effective management, you can maintain a centralized repository of up-to-date contract templates, categorize them based on contract types or clauses, and ensure easy access for contract stakeholders.
Stakeholder feedback loops involve establishing channels for ongoing communication and collaboration with key stakeholders throughout the contract lifecycle.One strategy for implementing stakeholder feedback loops is to conduct regular check-ins or meetings with all associates to gather their input, address concerns and ensure alignment with contractual objectives. Another way is to create feedback mechanisms, such as surveys or feedback forms, to gather structured feedback from stakeholders. Additionally, you can leverage tech tools, such as Slack, Microsoft Teams and Typeform, to facilitate stakeholder collaboration and feedback. These tools often provide features like comment tracking, version control and document sharing, enabling seamless communication and collaboration.
Data and analytics enable organizations to gain valuable insights, make informed decisions and optimize their contract processes. To implement data and analysis into the contract lifecycle management process, collect and analyze contract-related data (such as contract duration, renewal rates, or key performance indicators (KPIs). This information can provide valuable insights into contract performance, help identify areas to improve and advance future contract negotiations. Contract analytics tools automate data collection, generate reports and provide visualizations. These tools help track contract milestones, monitor compliance, and identify potential bottlenecks or risks. Furthermore, organizations can leverage advanced analytics techniques, such as predictive analytics or machine learning, to forecast contract outcomes, optimize contract terms and improve decision-making.
Effective contract management rests on the seamless integration of various contract lifecycle management elements. These components work collectively to streamline the entire contract lifecycle from creation to execution and beyond. Version control, for instance, ensures that everyone works with the most current contract terms, eliminating discrepancies and miscommunications. Secure access acts as a robust security measure, guarding sensitive data, ensuring compliance, and fostering confidentiality. Effective contract workflow management works to make the entire process efficient. Meanwhile, compliance alerts act as proactive safeguards, warning of impending deadlines and obligations to minimize risks.
Besides the above, contract analytics unlock valuable insights, enabling data-driven decision-making. Feedback loops and templates also enhance efficiency by maintaining collaboration and consistency. Together, these contract lifecycle management elements form a cohesive system that not only simplifies contract management but also minimizes risks, enhances compliance, and maximizes the outcomes of these contracts.
Contract lifecycle management tools integrated with enterprise legal management solutions provide the basics in legal operations within law departments. Use of the key features streamlines the entire contract process, improves visibility, mitigates risks, and frees up legal staff to focus on higher-value work. Organizations can realize significant productivity gains and contractual efficiencies by implementing the right contract lifestyle management solution. Contact us to learn more.