Looking for an upgrade in your contract management system? You may be most of the way there. Office 365, the cloud-based collection of Microsoft’s productivity tools such as Excel and Word, is becoming standard at many companies. The combination of Office 365 and Azure – the Microsoft cloud where O365 lives – has capabilities that will make enterprise contract management easier and more secure once the tools are harnessed to business processes.
Self-service contracts let your employees make contracts without consulting legal teams. If you haven’t used self-service contracts or contract management software before, this may sound like a risky proposition. Don’t you need your lawyers to review contracts to make sure your interests are protected?
As technology evolves, companies must update their processes and software to remain competitive. This process of “digital transformation” can be applied very effectively to contract management, where the return on investment can be realized in the short-term, with potential for ongoing savings as more contract types and business units are included.
In Part 1 of this blog, we looked at three sticking points in the contract lifecycle that occur before signature. Understanding the contract lifecycle means identifying those sticking points and reducing friction so business gets done promptly but still safely under contract.
Here are three common sticking points that occur once the contract is executed.
Some business you can do with a phone call and a hand shake. But when your business depends on the outcome, you need a contract. Getting a contract in place (or acting according to its terms) creates sticking points. Understanding the contract lifecycle means identifying those sticking points and reducing friction so business gets done promptly but still safely under contract.
Organizations expect the benefits of contract management software and contract compliance to accrue to them. Their procurement team will gain in efficiency, shorten turn-around time, and reduce costs. Their attorneys will focus on unreviewed, contract-specific terms in high-value agreements instead of checking and re-checking boilerplate language in routine contracts.
For public utilities, contract management software can play a key role in the successful procurement.
Thriving businesses need contract management processes that can scale with their growth. Without the right contract management process, you can quickly lose sight of details that matter: failures of business partners to deliver on time, your business’s own obligations, potential revenue streams, legal and economic risks, and more.
Unfortunately, many managers don’t know how to spot common warning signs that their contract management processes will not scale. If you find any of these six problems, then you know that it’s time to find a better approach than the one you currently take.
Nearly all contracts go through eight essential phases during their life. Collectively, these phases are called the contract lifecycle. The concept comes from the lifecycles that all organisms follow. For a frog, the lifecycle begins with a tadpole. For a contract, the lifecycle begins with a request.
Implementing contract management software across your organization? What could go wrong?
In a word: plenty!
That’s because the success of contract management software depends on how it is deployed and how it is used. Even a well-conceived implementation can encounter road bumps and detours; but from our experience, here are five mistakes to avoid from the start.