Contract Management System For A Business Organization

In today's evolving work landscape, organizations are embracing a flexible work environment that accommodates both remote and in-office work are toolkit arrangements. This modern approach to work requires a harmonious blend of internal support from management and teams, flexibility, and resilient internal processes

Having a set of best practices with a contract management tool is far more relevant now in this new culture than what it used to be earlier. Business organizations now firmly believe that CLM platforms are here to stay for the reasons of efficiency & productivity due to its broad reach collaboration capabilities, time and cost savings and more.

A hybrid work environment calls for a greater degree of efficiency in managing workflows while effectively collaborating with teams and stakeholders. With legal operations all awash with legal technology, the one platform that has seen enhanced role and influence over workflow processes is the contract lifecycle management tool. A CLM tool enables organizations to generate contracts, monitor the terms of contracts, and take timely action regarding drafting executing & executing or renewing contracts.

This post will address how CLM has become an almost indispensable tool for contract managers to collaborate better, unearth hidden risks and liabilities. The post also talks about taking timely action in a hybrid work environment.

Stages of Contract Management System

The primary stage: Simplified creation of contracts

Typically, it takes several emails back and forth to create, make revisions, execute amendments, and draw up the final contract. The legal department creates contracts for various other departments either from scratch or with readily available templates. Unfortunately, these templates may be redundant, obsolete, irrelevant, while also may fail to consider several valuable clauses, such as the Force Majeure, which has drawn so much of attention in the past couple of months. Needless to mention here, the system is fraught with risks and prone to manual errors.

With the CLM, the process is more streamlined, effective, with in-built capabilities to save time and automate the entire system:

  • Faster contract creation with templates
  • Use of clause library for contextual use of keywords
  • Centralized control for automated workflows, redlining, and vetting of contracts
  • Tracking of renewals, obligations etc.
  • Simplify the contract process and manage risks

Stage two: Automated collaboration for contractual milestones

Whether it is about negotiations, collaboration, or meeting such other key contract milestones, a robust CLM such as RazorSign, has been a primary port-of-call to improve contract standardization, compliance, and contracts due to its extensive collaboration support. RazorSign now has enhanced collaborative features allowing the execution of contracts in a smooth collaborative development process with multi-party buy-in. This allows direct in-draft editing of contracts by multiple stakeholders, get approvals, and more - in realtime! Check out our article on contract negotiation to know more of the latest in collaboration enabling features in a CLM.

Stage three: Execution of contracts

Execution of contracts is the penultimate stage of the contract management process, has been mostly a manual process. Drawing greater efficiency into the contract management processes involves automating the platform with the prompt contract execution tool, - the e-signature platform. With value-added features like the e signature for contract management, the CLM platform offers easy-to-use and quick implementation of streamlined contracts. RazorSign is a platform that seamlessly integrates with your existing CLM solution, enabling you to execute your contract within minutes. Simply share the final version of your contract with all signatories via our RazorSign CLM suite and using a secure link, the signatories can safely sign the contract in an instant.

Relevance and importance of a robust contract management system going ahead

These three aspects above – simplified creation, collaboration, and tech-enabled execution, together create the bedrock that supports a hybrid work atmosphere with distributed teams carrying a mix of office and home-based employees. Thus, as we built a whole new infrastructure for a hybrid work environment tech-enabled internal processes that are flexible become essential. These processes must at the most basic level, include streamlining workflow processes, collaborating with teams over contracts and agreements, for example:

  • Real-time status tracking of contracts-in other words, contract visibility
  • Timely collaboration in a digital environment that can avoid the exchange of multiple emails and communication
  • A contract repository system for authoring, storage, retrieval of contracts, document storage, improving accountability, increasing productivity, and fix the shortcomings for manual workflow processes
  • Doing away with the paper-based processes that can help save money, save time, while also offering enhanced security
  • An end-to-end mechanism for contract lifecycle management right from the stage of request and authoring to a stage of execution of contracts and beyond, to contract administration

Bearing these in mind the relevance of a prompt contract management tool has increased manifold during recent times. Offering the best-in-class features is our CLM platform RazorSign that has helped organizations automate contract management systems and align the organization's performance with those of the stakeholders' and internal teams.

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