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CLM software is used to automate and streamline the contract processes through key stages starting from initiation to approval.
Following are a few essential tips for managing your contracts effectively,
- Creating customized templates: The first step for a contract lifecycle management system is to create and use customized templates which can be shared throughout the company.
- Centralizing contracts: Keeping contracts in one central location allows the organization to stay streamlined with its new and as well as existing & previous contracts. When all contractual documents are in one place, they are way easier to search.
- Allowing collaboration: If contracts are located centrally then, any number of collaborators can access the contract document to make any required edits or comments. Implementing CLM software is a great way to manage the drafting, editing, and review process.
- Setting-up automated reminders: CLM software helps to set up automated reminders at each of the critical stages of a contract. These reminders can be for certain approval tasks or can relate to important deadlines like the renewal of contract and expiration dates.
- Clutch existing technology with new software: Choose software to integrate with existing tools like Office 365 and SharePoint which are already installed in most organizations. This will help to take the contract process to next level, and will also make it easier for all the users throughout the organization to understand.
- Be prepared for an audit: The use of advanced software enables an organization to avoid using email to send contracts and other sensitive documents which helps in getting prepared for the audit. It also provides an audit trail option to drill for a mock audit process.
- Having a Data-Dashboard: Choose a proper CLM tool that provides all important data and critical information, related to any contract at any given stage, at a glance like a dashboard. It ensures that users can find any data when they need it quickly.
Key Players for Efficient Contract Life Cycle Management
- Legal team: Undoubtedly the legal team plays a major role as they are the individuals who are drafting, editing, reviewing, and negotiating the obligations. The legal team consists of attorneys, legal assistants, paralegals, clerks and, analysts.
- Compliance Team: They are the regulatory powerhouse within the company. This team ensures the organization is meeting all the regulatory obligations like safety and governance concerns.
- Audit Team: They ensure that all contracts and policies are evaluated properly and fall in line with the internal constraints of the organization. Their goal is to make sure that all contracts are accounted for, all documentation process is completed, and the information provided is a fair representation of what is occurring within the process.
- Sales Team: Sales is a major team in the contract lifecycle management system because they create the value which is selling the legal obligations of your company. It is important to have an expert sales team who provides a steady message to all your clients in line with the contract terms and negotiations.
- Procurement team: They decide the purchase of goods and services from other organizations on behalf of your company.
- Analysts and Council: They are the ultimate decision-maker in the organization. Their signatures typically appear on the contractual obligations as an approval.
- Project Manager: They are assigned on a project to achieve deliverables within specific timeframes.
- Constituents: This group is the most important among all. They are the large base of employees who represents your organization. Though management teams create the contractual obligations it is the employees who carry out the commitments.
Day by day it is becoming inevitable to choose a suitable contract lifecycle management (CLM) solution for your organization from a proven expert in the industry. On one hand, you have to select and place all the key players properly within the organization to ensure maximum productivity. On the other hand, you have to select a proper CLM software providing features like central repository; contract alerts, reminders & notifications; customized templates, version history, and seamless integration.
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