3 Main Myths about Contract Management Software – Debunked
We aren’t big enough for a CLM system. Our data would be at risk. We’re too new … Cast aside your doubts by examining the benefits of Contract Lifecycle Management (CLM) software (also known as contract management systems). Discover how CLM can transform your work, no matter your business size or needs.
The CLM Myths
First, let’s look closely at some of the most common contract management system myths. How did these myths originate, and are any of them valid? And how can contract management systems be a solution for your business?
1. We’re too Small for CLM
One of the common refrains heard from many businesses without CLM software is that the size or scale of their business makes a CLM system unnecessary. Myths such as:
We’re a small company; we have no need for a contract management system. CLM software won’t benefit us; we don’t have enough clients. We don’t process many contracts, so CLM would be unnecessary for our company.
The reality is that CLM systems have demonstrated improvements in efficiency and productivity no matter the scale of the company employing them.
Every company deserves organization of and accessibility to all its data; CLM systems provide this. Why should a company of any size perform repetitive work, such as drafting similar contracts multiple times or creating deadlines manually when this work can be done by a contract management system?
Reduce contract risks
Risky agreements can be costly if things go south, and not every small business has the means to endure such expenses. A CMS makes it possible to reduce the total risk involved in your business agreements through automated tools such as standardized templates, compliance monitoring, and deadline notifications. That way, you can commit to beneficial agreements without worrying about the consequences.
Foster healthy business partnerships
Successful business partnerships are important for companies just starting their operations. However, managing the increased volume of contracts can be challenging once your business expands, leading to damaged relationships. Contract management software streamlines your lifecycle management process and boosts communication so that you can offer every partner a positive experience.
Minimize time spent on bottlenecks
Even if your organization doesn’t deal with many contracts, you still want each one to move through its lifecycle quickly. However, manual management often creates bottlenecks that hurt your productivity levels. CMS reduces these unnecessary bottlenecks by giving you oversight into the entire process, allowing you to see what area you need to focus your efforts on.
Boost company growth
The biggest benefit of contract automation for small businesses is the chance to grow your company. Many small organizations that rely on traditional contract management don’t realize that this is holding them back from expanding their operations. Once you switch to handing your contracts on a CML platform, you free up time and money that you can dedicate to focusing on your company and its success.
2. Our Data Will be at Risk with CLM
Another common myth is that of CLM software increasing data vulnerability. Thoughts such as “Our data won’t be secure”. In fact, the opposite is true. By storing your data in a centralized, secure location, your company is less at risk of data loss or theft.
Additionally, contract management systems provide tiered access to data; you can designate who can see what information. For instance, perhaps only one team needs access to client data, while another segment of your workforce needs templates for past and future contracts. You decide who sees what data on a daily basis, and you have the ability to change access at any point.
3. We Will Lose Control of the CLM Process
One myth revolves around a feared loss of control over the contracting process. Understandably, you want to be the one driving the process. With CLM software, you will be able to do just that, and with much greater ease than by using a manual, piecemeal approach. Tracking negotiations and executed contracts will be simple when you can quickly pull a report by date or any other search terms that you need.
Some companies may hesitate to invest in CLM because they worry they will lose the “human touch” and personal service they are known to deliver to their clients. The reality is that contract management systems only improve the personalization of the contract process. Automating deadlines, improving accessibility, and transparency all allow your team to focus on developing the all-important relationship with the client instead of spending time tracking down information.
Transform Your Business with CLM
As noted above, contract lifecycle management software, also known as contract management systems, transform contracting processes by making them more transparent, efficient, and accessible. These benefits will be experienced by both your business team as well as your clients.
Benefits of the small business transformation
When you transform your contracting process by implementing a contract management platform, you are investing in the success of your business. Contracts are the backbone of any company, so you should put equal efforts into streamlining them just like any other business operation.
Once you automate your contract management process, you will immediately see the benefits, including:
As your business grows, so will your number of contracts. A contract management platform will help you keep all your contracts and related documents in order by storing them all on a central repository. This means you won’t have to rummage through dusty file cabinets and various computer folders looking for one document, as you can easily find it whenever you need it on the platform.
Boosted personal data security
Since small businesses often have inadequate security measures compared to big corporations, they are more susceptible to data breaches. A contract management platform will exponentially improve your personal data security with data encryption, cloud-based storage, role-based permissions, and password protection so that you can protect what matters most.
When you run your contract management process on word processing platforms like Microsoft Word and Excel, you can’t gain essential insights from your contract data. A contract management platform analyzes your data and then organizes it into a digestible dashboard. This lets you see what agreements have the most risk, how often deadlines are missed, your average financial gain, etc.
Moreover, CLM software harnesses available technology and uses it to your advantage, allowing you to devote more time and energy to clients and relationships rather than the minutiae of tracking every step of the contracting process. At all times, you maintain control over the processes; you are able to direct the CLM system to best fit your needs.