For startups and smaller businesses with relatively few employees, each person’s role and responsibilities within the company may be rather substantial. This has the potential to become problematic when someone has to be involved in multiple areas of the company’s operations, especially when those discrete segments of the business are highly detail-focused. A prime example of a company operation that requires a keen attention to detail is contract management. Virtually all contracts contain a slew of important dates and deadlines, and they obviously impact the company’s budget in a myriad of ways. Thus, for those folks helping to oversee the contract portfolio, whether exclusively or in conjunction with various other responsibilities, there will be a lot of important details to attend to and remember. If the team is not organized appropriately or has not instituted an effective contract management system, the consequences could be disastrous. Of course, in addition to hindering overall productivity, any wasted time and resources will inevitably hurt the bottom line. Here is how contract management radically improves employee productivity:
Centralized Contract Database
There are no doubt quite a few benefits to establishing a cloud-based contract management system, and perhaps one of the biggest advantages is the fact that it creates a centralized contract database. Rather than have contracts scattered across computer hard drives or multiple filing cabinets, an online system automatically ensures there is convenient consolidation of all company contracts and any related documents. This eliminates the need to search for documents, either electronic versions or paper copies.
In addition, there should never be a reason to attach a contract to an email, which could be intercepted, further distributed, or end up in the wrong inbox. By centralizing the portfolio, the people who have to deal with contracts on a regular basis can quickly and easily locate the information that they need, potentially saving hours each week since they will no longer have to remember where something was filed or saved.
Of course, in addition to making it easier to find a contract once it has been saved in the online repository, the centralized database also greatly enhances the team’s ability to collaborate on various contracts and projects. For one thing, no one has to be physically in the office to help review or revise a contractual document. With a cloud-based contract management solution, the database will be accessible from anywhere at any time.
As a result, even if employees are on the road for business or need to work from home at some point, they will still be able to contribute to the contract management process, as needed. This round-the-clock, easy access enables employees to work at their pace and essentially streamlines every facet of contract management, allowing for better time management and improved productivity.
When it comes to contract management, a common concern is having to keep track of the key milestones and other important dates contained within the hundreds or even thousands of contracts within the portfolio. This is a daunting task irrespective of the contract management solution that is utilized. For this reason, it is critical to select contract management software that contains an alerting feature. This will ensure that an email reminder is generated when any contract has an upcoming key milestone. This can be tremendously time-saving, as no one will have to manually monitor the contracting calendar.
To ensure the efficacy of the contract management process, it will be important for companies to engage in periodic audits or contract reviews. This may be an informal or formal process, with or without the help of external parties. Regardless of when and how this is conducted, the contract management team can effectively oversee performance and ensure maximal efficiency by relying on customizable reports. There is no reason to wait every quarter or every six months to figure out what is working and what is not. With the right contract management solution, special reports can be generated on a weekly or even daily basis to assess where things stand, which of course drastically facilitates performance.