Modern and innovative technological advances have altered the contract management game. Contract management software is a robust tool that may relieve all of your contract-related stress and make managing lifecycles orderly and straightforward. It’s time to consider the tools you’re using in your organization’s contract management procedures.
To assist you, we have compiled a thorough list of the most “must-have” features for a contract management system.
Ascertain that your CLM interacts with the apps you currently use and like. The proper choice of integrations is critical for promoting adoption and reducing delays when implementing a new system.
For maximum flexibility, look for a CLM that utilizes a public application programming interface and can connect with tools your team uses cross-functionally, such as Dropbox, One Drive, Adobe Sign, and Google Drive, among others.
If your team regularly utilizes Microsoft Word, you’ll want to choose a platform that is docX native to ensure a smooth and painless transfer.
- Workflows Designer
Keeping all of your contract designs in one place simplifies the creation process. Some contract management software provides excellent workflow features that keep things structured, while others provide a fragmented jumble. To guarantee quick and accurate contract creation, seek a platform that prioritizes usability and includes features such as a drag-and-drop interface. It should also take place on a platform that offers transparency to all stakeholders, removing doubts about existing drafts and promoting cross-functional cooperation.
Creating a contract process may be as easy as uploading or selecting a pre-existing template, marking any sections that the counterparty must fill out, and adding approvers and signers. Unfortunately, many CLMs make this more complicated than it needs to be, resulting in more manual labor than is required.
A Workflow Designer would ideally also assist in ensuring that all customer business rules and legal requirements are met digitally, with no human involvement or review needed for each contract. This is because each possible clause can be evaluated just once when the contract is formed, and then each contract may be fine-tuned for unique versions and parties.
You’ve undoubtedly experienced that anxiety that comes when you can’t find a contract you know is in your briefcase. A central store containing all contract data reduces stress. Your contract management software should have a simple repository. All of that anxiety is alleviated by a CLM with a reliable repository function. Contracts and associated documents are not only kept on a single platform but can also be easily updated and monitored.
Reminders and auto-renewals may be configured, eliminating the need for untrustworthy human memory cues. The metadata of a contract includes fundamental information such as: • the names of all signatories • the contract’s value • the kind of contract • the expiry date • the renewal date
Having this organized information at the fingertips of the whole legal team ensures that everyone is kept up to date at all times. A good contract management software will enable you to get all the necessary information quickly. A contract management system should help to streamline and simplify the operation of your company. The key should be convenience, with all contract parties able to quickly access, modify, monitor, and sign off at each step of the process.
- Artificial Intelligence (AI)
In most contract management software, the promises of AI remain unattainable. The reality is that artificial intelligence is still a long way from being capable of handling complex jobs such as negotiating. Still, it may be beneficial in other aspects of the contract process. AI is intended to automate boring activities such as data filtering, freeing you time to perform tasks that entirely use your skills.
Look for a CLM that is upfront about the illusory promises of AI and uses dependable technologies, such as Google Cloud AI, to increase your efficiency and save you time. Machine learning, when applied correctly, may be employed in the contracting process with minimum cost and remarkable ease.
It is critical to interact with all parties engaged in the contract lifecycle process, especially throughout the review and modification phases. Many contract management software features do not have an internal chat function that allows quicker and easier collaboration.
Selecting a CLM with an Editor feature that enables quick and seamless comments and edits to.docx files and simple tracking of these changes is critical. This guarantees that each partner gets access to the most up-to-date version of the document, reducing mistakes and ensuring that everyone is on the same page.
Collaboration among all contract parties may be facilitated by tools such as Workflow Designer, which allows near-instantaneous changes to contracts that can be authorized in minutes, enabling in-house legal teams to engage at all levels.
Choosing contract management software that lacks rigorous security measures may jeopardize your company’s security. It exposes you to liabilities caused by various causes, such as a data breach. You must use contract management tools that safeguard your highly sensitive contract data at all times.
Ascertain that your CLM uses various techniques to maintain the highest standards of client data security. The recommended practices include using rigorous data encryption techniques and checking for penetration vulnerabilities regularly.
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Contract management isn’t a pleasant process, but it doesn’t have to be complicated. Using a contemporary, simple contract management solution that meets your requirements is one of the most excellent methods to make the contract administration process more manageable. If you search for the characteristics listed above, you’ll be well on your way to selecting a system that can assist you in taking your company to the next level.