How to turn Contract Management into a Strategic Advantage

published on Contract Management
Contract management is more than just storing a bunch of documents filled with legalese in a filing cabinet somewhere. Together, contracts comprise of the roadmap of the company’s vision for years to come. However, several surveys show that many organisations still struggle with efficient contract management. Here’s how your organisation can transform contract management from an administrative task you must do into a strategic advantage.

Use Insights to Monitor Compliance:

In a recent survey of general counsel, 30% of respondents reported that it would be impossible to generate a report that shared information about terms in their contracts. Therefore, it’s also impossible for them to control their risks if they can’t see them in the first place. The real value lies in the data contained in the contracts, because it allows you to dramatically reduce your risk by analyzing contracts for their value and renewal date so opportunities aren’t missed.

Work Smarter, Not Longer:

Managing contracts is a complex process because of the numerous stakeholders and ever-changing variables involved. The process is often further complicated when contracts are manually managed, leading to an increase in risk and limited visibility on contract performance. Many companies address these weaknesses by approaching contract management as an administrative task instead of a strategic one. For instance, if there’s a lack of data the answer is more data entry. If it’s difficult to track obligation or risk, the answer is creating some spreadsheets to track the information. Legisway has developed a solution that enables legal departments to manage their contracts entirely digitally that results in a shorter approval cycle and increased control.

Easy-to-use templates and clauses:

Help to ensure contracts are created consistently across business units using standard templates that have standard terms and conditions. The person responsible can receive real-time feedback on the current stage of the contract in the life cycle so they can make timely decisions. Conversely, contract management solutions help non-lawyers in the organisation to be self-sufficient during the life cycle. By reducing the number of enquirers made to the legal department, it allows them to focus on their strategic priorities.

Increased Security

Legisway has several years of experience handling sensitive information for hundreds of organisations worldwide employing multiple levels of data protection, such as encryption of all data transmission over 256 bit SSL security, unique key generation for each customer, and document encryption.

The same security over your organisation’s data is extended to third parties, by granting them privileges and restricted access. With such a high level of security in place you can focus on the compliance and control necessary to successfully manage your contracts.

Takeaway:

All the valuable data critical to business contained in an organisation’s contracts translates into compliance and savings. In other words, when there’s no visibility into contracts you are literally throwing money down the drain. Proactively managing contracts increases financial and performance and productivity. Today’s highly competitive business environment requires that contract management becomes a core competency.

Are the processes you have in place to manage contracts across the business inefficient and risky? Our whitepaper “5 ways inefficient contract management exposes your business to risk” explores 5 common contract management scenarios that put businesses at risk and describes how Legal can mitigate the risks with more effective and efficient processes. Get your free copy today!