3 Main Steps with Effective & Collaborative CLM Your Business Should Take
Contract lifecycle management (CLM) software provides businesses the ability to streamline the process of creating, drafting, executing, and managing all legal agreements involved in the daily operations of the business. Not only do CLM software solutions significantly reduce the amount of time it typically takes from start to finish of a legal contract, but they also cut down on costs (by decreasing labor costs) and prevent human-caused errors from ever occurring (since the software is able to verify every step of the contract cycle).
Overall, CLM and e-signature software (any software that allows users to sign electronically) make the entire contract negotiation and management process much more efficient than when done manually; it’s no surprise that these CLM software solutions are increasing in use and popularity, especially during the COVID-19 era.
Step 1: CLM Software for Contract Negotiation
Contract lifecycle management software helps immensely when it comes to making the contract negotiation and writing process faster and easier.
Instead of hand-signing contracts and in-person negotiations, with collaborative CLM software, the entire process takes place digitally – this means no lengthy meetings or manual writing. Now, these contracts are files that can be emailed back and forth or accessed by all parties involved via the software interface.
What this means is the other party involved in a legal contract has the same 24/7 access to the contract as you do; also, you don’t have to even be remotely close in location to one another (thanks to the internet). So, no need for drafting or re-doing contracts – every step of the process is tracked and accessible in your CLM software.
All contracts are broken down into various components that are available to their corresponding party; in other words, when a team member accesses a legal contract, they see exactly where they have to read and sign. For all involved parties, the software will instruct them exactly as to what is required of them – not only that, but they will (or can be) ‘alerted’ when an action is needed from them, and this alert can be sent over email, text, or other mediums.
As you can guess, the software eliminates a lot of the headaches involved in a negotiation.
CLM software solutions also improve compliance management; no longer is a human error an issue, since the computer makes no such mistakes. There is no signing where signatures are not needed since the software will simply not allow it – this type of feature eliminates a lot of the mistakes that naturally arise with manual contract negotiation and signing.
Not only that, but every single version of the contract (from the very start to the very end) is available for recall with only a few clicks; if any party needs to go back and view a contract before certain edits were made, this is possible.
Step 2: Using E-Signature Software
E-signature software is a feature that is typically available with any commercial contract management software – it is by far one of the best ways to enhance customer service and improve satisfaction with the legal agreement process.
Quite simply, e-signature (electronic signatures) means that a user or party can sign via computer, tablet, phone, etc. This signature is legally binding and is far easier and quicker than having to sign manually.
If your business deals with lots of customers and your transactions require signatures, the choice to download e-signature software can be one of the best you’ll ever make; as is with any management contract software, the ability to sign electronically reduces risk, eliminates human error, and allows for an overall better experience for all parties involved in the legal agreement.
Step 3: Increase Efficiency With Contract Lifecycle Management Software
Managing contracts is a pain – there’s no way around it. This is especially true for any business that requires a lot of legal agreements; whether you happen to be this type of business or not, CLM software can drastically increase the efficiency of business processes.
Management contract software helps with:
- shortening the review and approval process of contracts (when you don’t have to meet in person or sign manually, this cuts back on time immensely).
- ease of access to contracts (all you need is access to the internet and any party involved can view a contract).
- cutting down on cost (the fewer hours worked, the less labor expense; this frees up time for more important business operations and growth).
- expanding location restraints (since CLM software allows for electronic contract negotiation and signing, this means you do not have to conduct business only with those in your immediate vicinity).
When you consider the contract lifecycle management software pricing and costs, it really is a no brainer for any business that wants to become more effective in creating and signing any and all legal agreements that are required in commerce; the benefits of this type of software are vast, with little to no downsides.