The Top Myths About Adopting Contract Management Software
Contract Management Software
While contract lifecycle management software helps businesses of all sizes manage corporate agreements more effectively, there are still companies that are hesitant to seriously consider a solution. A few common misconceptions about adopting a contract management solution cause some teams to shy away from CLM software, but these are primarily based on outdated information or a bad experience with one provider, highlighting the need for greater discussion.
If you’re struggling to manage your contracts effectively, but haven’t looked into solutions to help improve the situation, it may be because one or more contract management software myths are getting in the way. Here are four myths about adopting contract management software and the reality that might change your views.
Myth 1: It’s too expensive
The legal technology field is rapidly expanding and more legal teams are turning to CLM software for help with various tasks and processes, but it can still be challenging to get budget approval for new solutions. Plenty of companies in need of contract management software ended their search before it started based on the assumption that you need $20-$30k or more to find a viable solution. While there are undoubtedly a number of contract management software providers that require that kind of a commitment to get started, and many systems that cost two to three times that amount, the reality is that there are reasonable options for almost any budget.
Today’s CLM software landscape is made up of hundreds of solutions, meaning you should be able to find something that addresses your needs and improves your contract management workflow without breaking the bank. There are multiple factors that can dictate the price range for software (number of documents, specific features and functionality, etc.), but for those in need of a better way to sign, store, monitor, and report on contracts, you can find viable solutions for less than $10k per year.
Myth 2: It takes too long to get started
Much of the time, there is some merit to this thought, especially when working with software that is intended to serve as an all-encompassing contract management platform. However, when you adopt a solution that is focused on solving key problem areas in the contract management process, and allows you to keep using your existing tools that are already working, you can start seeing value from contract management software in far less time.
One of the biggest challenges when adopting any new business software is the time it takes to get internal teams accustomed to and comfortable with a different process for accomplishing certain tasks. The key is to get alignment with everyone who will be impacted by the change before adopting a solution, and ensuring their concerns are heard and addressed. If you do those things, and choose a contract management system that prioritizes ease of use and implementation time, you can get up and running with your new software quickly.
Myth 3: It’s too complicated
This concern is incredibly common among those who are researching solutions. Many people who have had a bad experience working with one CLM software provider make the mistake of thinking that every solution is difficult to learn and requires extensive technical knowledge and experience to be successful using the system. That’s true for some systems, but not all.
Just like with pricing, ease of use also varies greatly from one software to the next. The best way to identify the solutions that are intuitive and easy to use is by researching to see what other users have to say about their experiences with the software, which can be found on review sites like Capterra and G2. From there, signing up for demos and free trials will give you an opportunity to see firsthand whether each system is viable for you and your team.
Myth 4: It’s only for businesses with thousands of active contracts to manage
It’s often thought that contract management software is only valuable to companies with a high volume of agreements, but that’s just one of the reasons businesses adopt contract management systems.
In reality, almost any business needs a contract repository for its documents. While having software in place certainly does make it easier to store, organize, and monitor large numbers of corporate agreements, it’s also extremely important when managing contracts that are either high value or high risk and can negatively impact the business if not managed effectively. The risk of human error will always exist when relying on manual contract management, and introducing software designed to make it easier to stay on top of critical contract details greatly reduces that risk.