In previous posts last year, we spoke about features you should be looking for in a premier contract management solution. We’d like to keep the momentum going on this topic by discussing some very common, and major problems that the best contract management solutions can solve for you.
Before we get to the problems, we’d like to make something clear: contracting is more complex than ever before, and this unfortunate trend is expected to continue. One reason is that standard, “universal” contracts are a thing of the past now as clients are demanding more personalized contracts. What’s needed is a simple and reliable process for getting new contracts into the system, approving those contracts and then managing and storing them. Business, legal, and even financial contract approvers should have access to one central location to collaborate and approve contracts as they move through the contract lifecycle process. Now, let’s have a look at the problems.
Problem #1: The contract management process is unnecessarily complex.
This is the 21st century and we need to press “delete” on this problem. The top contract management solutions allow you to easily collaborate with reviewers and departments directly. Email updates may be sent to contracts through an assigned unique email address, and email notifications will be configured for multiple events, including new contract requests, comments, tasks, updates and documents.
Problem #2: A decentralized and confusing repository.
A complete, centralized contract repository allows users to organize lifecycle information such as participants, documents, milestones, negotiations, status reports, key dates and provisions.
Problem #3: The lack of visibility.
Centralizing your contracts allows visibility throughout their lifecycle. You can see a document’s history, including all previous versions and can create reports based on any data field in a personalized dashboard.
Problem #4: Inflexible workflow.
The best solutions allow workflow to be configured relative to a contract type or matched to your unique business needs.
Problem #5: Weak reporting and analytics.
Why would this even still be a problem today? A powerful, straightforward dashboard allows stake holders to quickly view and analyze the department’s progress on contracts and certain bottlenecks that may appear.
These are the main problems we’ve noted over the years, but the list could go on and on. Choosing a provider that is always on top of their game is a sure-fire way to rest assured your money is well spent. By the way, it’s quite possible to purchase a contract administration solution, and also a separate contract review and approval solution. Better still, if you choose to use a contract lifecycle management solution, you’ll have the best of both worlds: a convenient combination of contract administration and contract review and approval all in one package.