The right contract management software can be a game changer and a force multiplier for small legal departments. Here are some of the ways that small and medium-sized businesses can benefit by using contract management software.
First, contract management software gives you better control over your legal documents. The entire database is easily searchable and can be navigated using a hierarchy or metadata.
Because every file is stored in the right place (along with other related information) and straightforward to find, staff don’t need to interrupt the general counsel’s workflow just to locate what they need. In addition, team members can rely on standardized contract templates that always contain the correct, most up-to-date language.
Second, using contract management software improves managers’ and executives’ oversight of your operations. For example, managing deadlines is one of the most difficult parts of manual contract management. Dedicated software can help you identify revenue opportunities such as renegotiating terms, eliminating costly legacy agreements, and canceling “evergreen” contracts that automatically renew.
Many contract management software applications come with reporting and analytics features that provide a snapshot of current workflows and upcoming events and deadlines. Providing this open yet controlled access to information lets you easily take account of all team members’ activities.
Not only does contract management software fix the traditional pain points of legal teams’ workflows, it makes your organization more efficient and productive in general. Below, we’ll discuss four ways that contract management software can empower smaller legal teams.
Smaller teams often have manpower problems: too many things to do and not enough people. Fortunately, thanks to advancements in automation, small legal departments can get more done without having to add another person to the payroll.
Management consulting firm McKinsey & Company estimates that 22 percent of a lawyer’s job can be automated by technology. Using developments in artificial intelligence and machine learning, contract management software allows smaller teams to operate more effectively by automating tedious, time-consuming tasks and providing better oversight of critical documents.
According to a classic study by the University of Hawaii, 88 percent of business spreadsheet documents contain errors. During the lengthy, document-heavy workflows of contract management, legal teams may be especially prone to mistakes and inaccuracies.
When legal documents are managed manually, they are subject to problems such as:
Forgotten or missed deadlines
Hidden risks such as liability clauses or performance triggers
As long as you’ve set it up correctly, contract management software always remembers deadlines and never commits an error, which will boost your accuracy rates and improve client relationships.
Properly administering a contract can be a pricey endeavor, especially if you make mistakes along the way. For example, missed deadlines can incur financial penalties and additional overtime from your employees as they work to correct the issue.
Contract management software takes away much of the drudgery involved with signing and executing contracts. Making your contract management workflow more orderly and predictable has a “ripple effect” on the rest of the business, helping you lower costs and manage your budget better.
If your old tools aren’t up to the task, or if you see growth and change hovering on the horizon, you know it’s time to reimagine your contract managementOur guide, Contract Management Software for the Small Legal Team: Why It’s Not Just for the Big Fish Anymore, will help you navigate your contract management options so that you can choose the right solution to fit your needs. Download your complimentary copy now.