Once a contract has been executed, what happens to it? Does the contract move on to storage purgatory, never to be seen again — or at least until there is an issue that needs to be addressed, or you need to capture some information from the contract? How do you confirm that the terms of the contract are being met, and that all the major milestones and deadlines are being adhered to? And when the expiration date approaches, what do you do about renegotiating and/or renewing the contract?
Contract management is changing the way the world’s largest companies do business. How you may ask? By employing AI-driven technologies to better organize and operationalize their contracts, allowing them to save money, mitigate risk, and drive significant organizational efficiencies.
One complaint that we hear all the time from companies is that contracting takes forever. In many companies, it can take weeks to bring a contract from negotiation to execution, and it’s often due to issues in the contracting process itself — not the parties involved. Here are five common bottlenecks and how fix them.
It appears that the days of massive stacks of paper, endless rows of filing cabinets, and clunky, ineffective ways of managing contracts are rapidly coming to an end. Although contracts are the lifeblood of nearly every organization in every industry, traditionally the management of these documents has been disjointed at best.
On May 25, 2018, the General Data Protection Regulation (GDPR) goes into effect in the European Union. Although these protections are designed to protect the personal data for individuals located in the EU, U.S. businesses are going to be affected by these GDPR compliance, too. Simply put, if you collect, process, or store the personal information of anyone located in the EU, not following these regulations will prove costly to your business.
Exari’s powerful document assembly tool, DocGen™, is being increasingly recognised as an effective and expeditious way to generate insurance documents while capturing key data along the way. With Exari as the MRC builder, documents and their data can flow from broker to underwriter electronically, with less effort and more control. See how Exari DocGen can streamline your processes.
Selecting a contract management system is only the beginning to getting a handle on your contracts. Once you have chosen the platform you want to use, you need to transition your team into using the tool — and that’s usually a bit more complex than simply instructing people to use it. Not only do you need to provide training and instruction in how to use the system, you need to gain buy-in from individuals who might not understand why they need to change how they do things.
Every contract that your company has contributes to its value; even customer contracts that are still in the negotiation phase contribute to the bottom line. Yet for such a valuable asset, too many companies don’t manage their contracts to capture maximum value.
By choosing the right Key Performance Indicators (KPIs), you gain more accurate insights into your contract performance, which can drive more strategic actions and improve results. So how do you choose the right contract KPIs?
If you were to ask your legal team how much of their day is spent on actual legal work — the kind of tasks that would represent billable hours in a law firm — how do you think they would respond? Maybe 75 percent of each day? 50 percent on a bad day? Less than 50 percent when things go horribly wrong?