How Can Software Help with Contract Lifecycle Management?
The Role of Software on the Contract Management Lifecycle
In today's business environment, managing contracts can be a complex task. Contracts are critical to the success of any business, but contract management can be a tedious process. It often involves multiple stakeholders, can be time-consuming, and can be complicated by legal requirements and compliance issues.
With multiple stages and parties involved, it's crucial to ensure a seamless process from start to finish. As a result, many organizations are turning to contract lifecycle management (CLM) software to streamline their contract management processes.
In this post, we’ll explore how software can help with contract lifecycle management and why it’s a worthwhile investment for attorneys, general counsel, and contract managers.
Requesting Contracts
The initial step in the contract lifecycle is usually the contract request. Contract requests without software are usually random emails sent to a contract manager with limited information. This requires back and forth between the contract manager and the contract requester before all the details are obtained. With the large number of requests coming into the contracts team, this can be a huge waste of time. With a robust software solution like ConvergePoint, users can easily create and submit contract requests, providing all necessary details. This approach replaces traditional methods that were time-consuming and prone to errors, setting a strong foundation for the entire lifecycle.
The initial step in the contract lifecycle is usually the contract request. Contract requests without software are usually random emails sent to a contract manager with limited information. This requires back and forth between the contract manager and the contract requester before all the details are obtained. With the large number of requests coming into the contracts team, this can be a huge waste of time. With a robust software solution like ConvergePoint, users can easily create and submit contract requests, providing all necessary details. This approach replaces traditional methods that were time-consuming and prone to errors, setting a strong foundation for the entire lifecycle.
Efficient Contract Creation and Negotiation
Before a contract is signed, it often goes through multiple iterations and reviews, with each party suggesting changes and edits. It can be difficult to keep track of all these changes, especially when there are various stakeholders involved. CLM software helps streamline the contract creation and negotiation process by integrating all relevant communication, documentation, and approvals in one central location. This allows stakeholders to collaborate, communicate, and finalize contracts efficiently.
Drafting Contracts
Next comes drafting the contract. Good contract management software allows for both third-party paper as well as the contract requester's ability to use predefined templates to generate contracts. Here, the power of AI also comes into play. Advanced contract software solutions also utilize AI to generate contracts based on the provided inputs. This not only speeds up the process but also ensures accuracy and compliance with industry standards.
Next comes drafting the contract. Good contract management software allows for both third-party paper as well as the contract requester's ability to use predefined templates to generate contracts. Here, the power of AI also comes into play. Advanced contract software solutions also utilize AI to generate contracts based on the provided inputs. This not only speeds up the process but also ensures accuracy and compliance with industry standards.
A noteworthy feature here is the clause library. Users can store commonly used clauses and legal language, making it easy to include these in contracts. This reduces the time spent on drafting and increases consistency across contracts.
Reviewing and Negotiating Contracts
Once the contract is drafted, it undergoes internal review. A CLM software like ConvergePoint, built right on top of Microsoft 365 SharePoint, can track changes, comments, and approvals, ensuring transparency and accountability. It also allows for secure collaboration among team members, enhancing efficiency.
Once the contract is drafted, it undergoes internal review. A CLM software like ConvergePoint, built right on top of Microsoft 365 SharePoint, can track changes, comments, and approvals, ensuring transparency and accountability. It also allows for secure collaboration among team members, enhancing efficiency.
Negotiating contracts with third parties is another critical stage. The software provides Microsoft Word Plugin tools for comparing versions and tracking changes, AI tools for review and recommendations, and Outlook Plugin to easily send /receive contracts while maintaining a negotiation history. This makes it easier to reach an agreement that satisfies all parties.
Standardizing Contract Templates and Terms with Clause Libraries
Another benefit of CLM software is that it enables companies to standardize contract templates and terms with the clause library. This can help reduce errors and inconsistencies in contracts and facilitate compliance with regulatory requirements. Having standardized templates and terms also enables stakeholders to review and approve contracts more quickly.
Approvals and eSignature
Following negotiation, the contract requires approval from relevant stakeholders. With software solutions like ConvergePoint integrated with Active Directory and your email address book, the approval process becomes streamlined. The software can automatically route the contract to the appropriate parties based on predefined workflows.
Following negotiation, the contract requires approval from relevant stakeholders. With software solutions like ConvergePoint integrated with Active Directory and your email address book, the approval process becomes streamlined. The software can automatically route the contract to the appropriate parties based on predefined workflows.
The final step in the contract creation phase is signing. eSignature capabilities allow for contracts to be signed digitally, speeding up the process and reducing the need for physical paperwork.
Central Repository and Contract Renewal
Once signed, contracts are stored in a central repository. This allows for easy access, search, and retrieval. With Microsoft 365 SharePoint integration, users will have roles-based access to the contracts they have permission to view.
Once signed, contracts are stored in a central repository. This allows for easy access, search, and retrieval. With Microsoft 365 SharePoint integration, users will have roles-based access to the contracts they have permission to view.
Tracking Contract Obligations and Compliance
Once a contract is signed, it’s important to track its obligations and compliance requirements. CLM software can help keep track of key contract terms and milestones, including renewal dates, payment terms, and non-compete clauses. This ensures that all parties are meeting their obligations and complying with legal requirements.
Automating Contract Reminders and Alerts
Manually tracking contract obligations and deadlines can be a daunting task, especially when dealing with multiple contracts. This can help prevent costly penalties and missed opportunities. As contracts near their end, CLM software like ConvergePoint, can send automated alerts and reminders for contract renewals, ensuring no contracts lapse unintentionally and ensuring that stakeholders are meeting all deadlines and obligations. Similarly, if a contract needs to be canceled, the software can handle the termination process efficiently.
Improving Contract Visibility and Analysis
Finally, CLM software can provide improved visibility and analysis of contracts. This can help companies make more informed decisions about contract renewals, negotiations, and amendments. With CLM software like ConvergePoint, contract stakeholders can easily retrieve and analyze contract data, gain insights, and identify areas for improvement.
The Opportunity with Microsoft 365 SharePoint
The integration of contract management software with Microsoft 365 SharePoint presents a wealth of opportunities. With tight integration with Word, Active Directory, and email, users can manage contracts without leaving their familiar work environment. This enhances user adoption and ensures a smooth transition.
The integration of contract management software with Microsoft 365 SharePoint presents a wealth of opportunities. With tight integration with Word, Active Directory, and email, users can manage contracts without leaving their familiar work environment. This enhances user adoption and ensures a smooth transition.
Conclusion
Software solutions for contract lifecycle management offer numerous benefits, from streamlining processes to enhancing collaboration. With AI, clause libraries, eSignature capabilities, and integration with Microsoft 365 SharePoint, a CLM solution like ConvergePoint can revolutionize the way your business manages contracts. By adopting a contract lifecycle management solution, businesses can improve their contract management process, ensuring efficiency, compliance, and overall business success.
Customer testimonials affirm the effectiveness of these solutions, with users praising their ease of use, comprehensive features, and seamless SharePoint integration. If your business deals with contracts regularly, it's worth exploring how a software solution could enhance your contract lifecycle management.
Furthermore, tools like ConvergePoint add another layer of efficiency, providing complimentary software modules like policy management, conflict of interest disclosures, incident management, and more.
Request a free no obligation demonstration, and let us show you how to leverage the full potential of proactive contract management.