contract lifestyle management

 Contract lifecycle management

 

Do you know the foundation stone of the world of business? The answer is contract .Contract is the legal binding of agreement with the terms between the two parties.

Today for any agency or organization that juggle up with multiple contracts on a regular basis or at a one point of time ,with each contract at the different stage of contract lifecycle, the concept of contract lifecycle management (CLM) is likely a familiar one. It plays a vital role in any organization that weighs legal agreements. As in today world the legal and finance department workloads is growing faster and their processes are time consuming and labor intensive, so while they work on the critical part of their businesses they lack the visibility in the contract which leads to the lacking of focusing on the information which leads to the poor compliances errors which effects the revenues of the organization, brand image and even increase the risk.

The steps of the contract lifecycle mangement are shown below:

 Study has found that nearly 65% of enterprises report that contract lifecycle management reduces significant exposure to financial and legal risk.

What if you could transform your contract management processes by reducing risk and contract cycle times with maximizing the value of every customer relationship?

Contract lifecycle Management empowers the organization to cope up with the entire lifecycle of the contract by reducing the risk, minimizing the cycle times, improve compliance and maximizing outcomes with the help of the contract lifecycle management software(CLMS) efficiency and speed. This is will allow the organization to concentrate on the critical value task .

Contract lifecycle management steps

 There are few steps to the contract life cycle management process. While some steps require more attention than others. By using CLM software, you can ensure that these steps go off smoothly and without issue. 

 lets take a look at each step and how a contract management system deal with it.

Template Authoring

The first step in the process is to come up with the templates for contracts that your company will be using. This is a  standard process. One issue that can come up in this process is that templates can get lost at times. With contract life cycle management software, you can easily store templates within your company's contract template library. This allows users to easily find and access these without taking too much time. You can set it up so only specific users can edit/move these templates to ensure their security.

Contract Creation

In this step we take contract template and modifying it to meet your current needs. Without CLM software, this can be a time taking process but with CLM software, this process becomes easy. Automated workflows make it so that fields of the template can auto-populate based on certain conditions. with this we don't have to enter as much information and can save time on the contract creation process.

Contract Review

Measure twice, cut once. This is an important rule for businesses to live by. That's why the contract review step is highly important. Without using CLM software, contracts can get lost and the review can get delayed if reviewers aren't organized . By using CLM software, you can have workflows set up that automatically notify people when a contract needs to be reviewed so the process can flow smoothly.

Contract Approval

A major part of the getting contracts approved is that they get to the right people in a fast enough amount of time. By not using CLM software, you risk the process getting slowed down. Using CLM software, you can build automatic workflows that assign contracts to where they need to go throughout the process. As opposed to having contracts be sent manually, contracts at this stage will be automatically sent to the right people so they can approve it.

Contract Execution

 Contract execution should be quick and mobile. By using CLM software, you can set up workflows that make it easy to execute a contract. E-signature integration makes it so that contracts don't have to be printed out or faxed. They can just be sent over email, signed, and returned to your company within minutes - saving everyone time and money.

Contract Performance

Contract life cycle management doesn't end with both parties adding their signature to the contract. You need to review and manage the performance of the contract throughout its execution. This includes checking performance, evaluating performance, controlling, reviewing spending, and more. CLM software makes it easy to check on the progress of a contract. It will automatically gather all of the relevant data and compile it into reports that allow you to visualize the performance of your contracts.

Contract Expiration

 This is important to decide early as some contracts come with built-in auto-renewal clauses which can cost your company money. CLM software will send the relevant people notifications when a contract is about to expire. This way, you can know exactly when you need to be reviewing contracts so you can ensure you're making informed contractual decisions.

With a fully automated contract lifecycle management system (CLMS) you can:

• Standardize your contracts with a controlled and approved clause library and templates.
• Establish the right accountability with a defined approval matrix.
• A well define and rule-based workflow for task-oriented execution of activities at each phase of the contract lifecycle management software.
• identify, review, approve, and mitigate planning to address potential risks in the contracts.
• capture obligations, assigns responsibilities, and proactive monitor to ensure compliance with the contractual terms.
• Never lose the track through contracts as they are stored in single repository.
• Collaborate, communicate and negotiate with all stakeholders through a common, automated and integrated platform where everyone has visibility of the contract details so that there are fewer misunderstandings and greater trust.



2019 contract lifecycle management insight report