In this piece from Corporate Counsel Business Journal, Dave Parks, VP of Marketing with Contract Logix, worries that the economic slowdown will hamper organizations already struggling to do more with less and optimize their investments in areas such as contract lifecycle management. “It all comes down to data,” Parks says. “Contracts contain an enormous wealth of data that can be used to uncover the insights necessary about a business to weather or even thrive during tough times. . . .
Unfortunately, many organizations still use antiquated techniques for managing legal agreements which puts them at a severe disadvantage during any economic environment but especially a challenging one like we’re beginning to experience.” Before rushing ahead, however, Parks suggests organizations ask themselves five key questions:
- How will contracts be stored? “The best CLM systems include a cloud-based centralized digital repository that stores all contract data including the actual contracts and supporting documentation,” Parks says.
- Is it easy to search and access contracts? A centralized repository should make it easy to find information, and features like optical character recognition (OCR) technology scan and index all the information in contracts to make them completely searchable.
- How will it optimize my business processes? Automated workflows give organizations the ability to route contracts automatically to the right individuals and departments for editing, review and approval.
- How can I demonstrate a quantifiable ROI? “CLM software allows organizations to take control of contract processes to make sure that they are operating as efficiently and effectively as possible,” says Parks.
- How will it provide visibility into my process and performance? “One of CLM software’s greatest advantages is that it allows organizations to benchmark how long it takes for each step in the contract process, identify bottlenecks and deviations and use that data to optimize performance,” Parks says.
“In an era where every dollar is being scrutinized, CLM software helps address a number of issues including visibility, cost, efficiency and risk reduction by giving organizations the information necessary to make data-driven decisions that improve and optimize business processes in 2023,” Parks concludes. Read more at CCBJ.