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The always-on legal assistant you’ve been waiting for
When you’re new to Contract Management, there’s a lot to wrap your mind around. What’s your current contract management process? Who handles the different stages of contracts? And how does it all fit together?
Understanding the contract management process at your company involves more than just knowing how it works. In this article, we’ll lay out:
With these knowledge points under your belt, you’ll feel more empowered to maximize the strategic value of your contracts and improve the operations of your team.
Contracts define the terms, responsibilities and obligations between companies and their customers, vendors, partners, and other counterparties. In order to accelerate revenue and manage renewals, it’s essential to know what’s actually in your contracts.
Many companies struggle with contract management, which inevitably leads to missed revenue opportunities, wasted time and frustrated teams. Here are some common challenges:
It’s never easy convincing your team or your company to make a change, and some team members or even whole departments may show initial resistance to the idea. Deploying a contract management system can seem complex, and may require an investment that some people aren’t on board with.
However, persuading your colleagues is a lot easier when you can clearly show how contract management technology contributes to the overall financial health of the company. This is especially attractive during a slower economy when budgets are tight.
Specific teams have their own unique role and challenges when it comes to contract management. Let’s break it down team by team.
The legal team at your company may include a wide range of roles, such as attorneys, paralegals, contract managers and legal operators. Whether your company has a small or large legal team, they’re involved in creating, reviewing and managing every contract detail.
When it comes to contract management, legal teams have a critical role in analyzing the benefits and risks of a contract throughout the contracting process to ensure compliance. If contracts don’t meet regulatory requirements, serious legal and financial consequences can occur.
Their primary duties can include:
Legal teams are often viewed as roadblocks to contract efficiency, slowing down the process and forcing others to jump through hoops. However, with so much on their plate, it’s not necessarily their fault.
Where time and resources are precious, legal teams want to improve their overall efficiency and be seen as value drivers and deal accelerators. This is difficult without the right focus or contract management solution to help, which can lead to the following challenges:
To find the right solution for your team, you’ll need a contract management system that can address their ongoing challenges. Consider a system that has the following capabilities and how they would impact your overall efficiency:
As a revenue-driving force, your sales team is often involved in the entire lifecycle of a contract. Each member must ensure they know and deliver messaging that accurately aligns with your company’s contract terms. Otherwise, they can unknowingly mislead clients and put the company at risk.
Key contract management responsibilities of the sales team include:
From the initial call to the final signing of a deal, sales teams are focused on reducing their sales cycle times so they can speed up deal closures from request to renewal. Unfortunately, the mix of managing contracts and sales-related tasks can lengthen the time to close deals and cause missed renewals.
Sales teams often have to rely on other teams for answers and work across multiple departments, creating a bottleneck that causes frustrating delays. Without easy contract access and reliable visibility, they can wrestle with challenges such as:
Your sales team wants to focus on what they do best: selling.
To help them accelerate the sales pipeline, they need a simple contract management system that streamlines requests, cuts down on time-consuming administrative tasks and improves visibility & access. To do this, explore a contract management system that accomplishes the following:
Your finance team plays a crucial role in contract management, as they manage all the financial aspects of your company’s contracts. From budgeting to invoicing, they’re focused on avoiding financial risk and dips in revenue.
The finance team works with the legal and sales teams to evaluate whether contracts align with the company’s financial strategy.
Key contract management responsibilities of the finance team include:
In the world of contract management, the finance team wants to make sure renewals aren’t missed, obligations are met and costs are kept in check. When a contract management solution is too complicated, inaccurate or not adopted, it can lead to difficulties like:
As you explore ways to empower your finance team with a contract management system, there’s a few key things to keep in mind.
First, its capabilities should align and contribute to the company’s overall financial goals, in order to justify the cost. Next, the system should help remove the current roadblocks your finance team encounters on a regular basis, so they can improve their accuracy and efficiency.
Some key contract management system requirements to look out for include:
If we could shout one thing from the rooftops, it’s to keep your contract management requirements simple. This doesn’t mean using technologies that lack capabilities. It just needs the right ones.
These capabilities should support your company’s specific needs, including your team’s efficiency, contract visibility and strategic revenue goals. In short, your contract management system needs to put the right information in front of the right people at the right times.
Whether you’re just starting out in contract management or feel the need to improve your team’s processes, it can feel daunting to determine which contract management system is worth the investment.
Our team can help you achieve your goals, improve your contractual relationships and deliver the financial insights you need.
Learn how our radically simple contract management eases the burden of already maxed-out teams and does the heavy lifting for you with a live demo today.
1.415.963.3544
1 Sansome Street, Suite 3500
San Francisco, CA 94104
USA
info@pramata.com