Why Contract Lifecycle Management?
If you really want to know what’s going on in your business then you need to know what’s in your contracts. Not only do contracts contain a wealth of information, but when properly drafted, negotiated and managed, they also defend your business against risks such as liability, being underpaid or overcharged, and a wide variety of the unknown and unforeseen. In short, contracts protect against risk by giving you the information you need both on an everyday basis and in times of crisis, when speed, decisiveness and certainty are key.
In order to meet and surpass milestones and goals, companies need three things:
An efficient contracting process and deeper contract visibility, both of which lead to a strong contract portfolio.
Why an Efficient Contract Process Matters
Without standard templates and comprehensive knowledge sharing and enhanced negotiation capabilities, lawyers are forced to reinvent the wheel with every new contract, leading to disparity between contracts, potential rogue contracting, the possibility of human error and oversight, and maddeningly slow contract creation times.
A CLM solution with powerful self-service contracting capabilities means that low-risk deals completely bypass legal, saving immeasurable time getting deals out the door and to the clients.
Why Complete Contract Visibility Matters
You can’t manage what you can’t see. Imagine you are faced with a supplier failure, a financial crisis, a lawsuit or another negative event. You need to know exactly what your obligations are, what you may be liable for, and what legal remedies you may have. How do you know where and how you are exposed? How do you make informed decisions? How do you move forward confidently? The answers lie in your contracts.
The data in your contract portfolio contains all of the information you need to assess your position, make fully informed decisions and recover from setbacks. Being able to react to a crisis with speed and confidence can be the difference between bouncing back and losing valuable ground. But that’s not all your contract data can do. Complete contract visibility means you are able to access vital information with ease and without delay, but it also means being proactive. Running reports on contract data to shed light on internal processes, trends and potential triggers puts you a few steps ahead of crisis and a few light years ahead of competitors.
Why an Ironclad Contract Portfolio Matters
An ironclad contract portfolio results from efficient contracting processes combined with deep contract visibility and has the biggest impact on the value of your business.
Depending on your company’s maturity, you may be looking forward to a financing event or a public offering. Perhaps you are considering spinning off a division of your business, or acquiring or merging with another. In situations like these, potential investors or partners will pour over your contracts looking for holes. A watertight contracting process means your contracts are collated, clean, consistent, robust and searchable. No holes there. Complete contract visibility means you will have access to the information necessary to evaluate your worth. What are you owed and what do you owe? How much risk have you assumed? How resilient are your contracts? Visibility means there are no surprises.
Not only will financiers find immense value in the strength of your contract portfolio, but it will allow you to be in the best possible position to negotiate, to assume the right amount of risk, to grow better.
You Can’t Afford Not To Manage the Lifecycle of Your Contracts
It’s becoming increasingly evident that contract lifecycle management software is not a passing trend, but an essential part of growing your business. Employing state-of-the-art technologies to streamline the entire lifecycle of your entire contract portfolio benefits every department and creates a rock solid foundation upon which your company can surpass its goals.
The Benefits of Exari Contract Lifecycle Management
Exari CLM offers a suite of benefits tailored to the specific needs of your organization.
- A single, electronic repository for all your contracts and contract data means you always know where your contracts are and what they say
- Standard templates and clause libraries mean complex documents – from sales contracts to ISDAs – are created in a fraction of the time
- Unparalleled visibility into contract data cuts through organizational risk by allowing you to plan for and react immediately to events such as an M&A, ratings downgrade or legal action
- Automatic triggers mean you’ll never miss a renewal
- Industry-specific reports mean you know where your risk lives
- Approved workflows eliminate bottlenecks and reduce the length of sales cycle, assuring revenue comes in faster.
- Tools for streamlined negotiations means deals are closed faster
- A flexible API based on open standards enables you to future-proof your investment in CLM