Contract lifecycle process is an extensive process that requires the expertise of industry experts. Contract lifecycle management is defined as the activity of managing every phase in the contract creation and execution process. While contract management denotes managing contracts effectively, contract lifecycle management is a holistic process that nurtures the relationship between the involved parties and measures the performance of contracts using key parameters.
Organizations have begun to focus on the contract lifecycle management process since it gives an overall insight into the contractual affairs to the stakeholders. One of the best practices used by contract managers in getting the most out of the lifecycle management process is the leveraging of enterprise contract management software.
We have compiled a few strategies in streamlining your contract management process.
Define Your Policies
A lot of contract management challenges begin when the enterprise policies are not clearly defined. Policies pave the way for building solid processes. Hence it is crucial for the organization to design and define their policies for trade contracts, employee contracts and more.
A lack in enterprise policies can lead to a number of problems including rogue decision-making and improper monitoring of affairs. Just as it’s important to establish policies, it is also important to educate the contract team of such existing policies. Educating the team will ensure that the in-bound and out-bound contracts comply with the internal policies.
Since the policies form the baseline for creating terms and conditions in a contract, the stakeholders must proactively verify the legality of the policies and update the team accordingly. A best practice here is to create a document in the contract lifecycle management software and upload the policies document for the team’s perusal.
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Not all contracts carry the same level of value and weight. Although all contracts are important since they are legally binding documents, the level of importance greatly varies. Prioritizing the contracts allows the stakeholders to channelize their monitoring efforts. In an organization with varied departments, managing and monitoring contracts can be a laborious task. The contract management team usually prioritizes high-level contracts, which are managed and monitored by experts to ensure compliance and improve performance.
Sometimes, the team will be required to monitor contracts that are volatile because of the nature of the business. In such cases, where changes in the business are inevitable, the team has to prioritize the contracts. With contract management software, the team can segregate and manage contracts effectively.
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It is essential to optimize the contract management process to adapt to the changing times. The CLM process must be duly updated, thereby enabling the stakeholders to monitor every phase efficiently. Leveraging technology and reviewing the process enables the team to detect risks and improve the team productivity phenomenally.
Process optimization can be achieved by implementing automation tools and condensing redundant processes. Process optimization gives a complete understanding about how contracts are to be handled. Optimization also enables the team to address concerns regularly and simplify the process.
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Contract management strategies are effective only when the team is coordinated. By aligning the policies and the technologies, the contract team can amplify its entire process and yield quantifiable results. DocuCollab is one of the best contract management software that facilitates the team to implement strategies effectively. To know more about the software Click here .