As the legal industry evolves and technology continues to be enhanced to streamline and automate workflows, it’s time to consider the proper vendor selection to modernize your legal contract lifecycle management.
A thought-out digitalization strategy can be instrumental in successfully implementing the technology to modernize effectively.
Improving the Quality of Your Contracts
To improve a contract’s quality, the process first needs to be thoroughly evaluated. It is crucial to evaluate the existing process of all your contacts by identifying the aspects of the process that are working and those that are not efficient.
Document the evaluation in detail to identify the exact pain points and which areas need improvement. Aspects to consider:
- Cost savings
- Risk management
- Use of templates
- Time spent
Once the evaluation is complete, set some measurable goals.
These goals will allow you to build a solid strategy to identify which automation tools are needed before implementing them. A clear strategy is essential to streamline the legal process.
Another way to improve the process and quality of your contracts is by using contract templates. This brings a seamless flow to the process and makes language consistent across the company. As a result, it helps minimize errors and risks while making the process more efficient.
Cleaning Up Data from Multiple Sources
Prior to automation, create different categories to organize your existing data. During this process, look out for duplicated data, mismatching data, incomplete data, and outdated data. Also identify any underlying reasons for data errors, if any. It is also essential to keep your contacts all in one place for easy search.
Once you have a general overview of your data, you can look up automation software options and features to identify what your company will benefit the most from. The most efficient way to clean up data from multiple sources is by automating it. You can explore the option of implementing a centralized hub that can manage all the contracts that come into the company and leave the company. An automated centralized hub will help you stay organized and give you a holistic view of all the contracts in the system. The automation tools will help you search for specific data while gathering from multiple sources, helping you saving time, storage space, and costs.
Analyzing Contracts for Patterns that Could Lead to Risk
In any legal agreement, it is vital to read through the entire contract to look out for any potential risks, terms and conditions set, and any negotiations that need to be made. Generally, there are many back and forth in negotiations involving contracts, with edits being made back and forth. In such situations and with any contract, analyzing the content for patterns that could lead to risk is a best practice.
Once these patterns are identified, templates can be drafted based on risk areas that can be addressed. This will help reduce risks in the future while keeping things more consistent across the company. It also saves the legal department time on reading multiple similar contracts. If a pre-approved template is used, only edits need to be reviewed from there, making the process more efficient.
Leveraging Technology for High Volume Contract Review Work
Contract management solutions and software can make the long and tedious process of contract reviews more organized. The best way that contracts are analyzed for patterns in this situation is through pre-approved templates. If any changes are made, the software automatically sends it to the legal team for review and approval. This saves time, keeps processes streamlined, and reduces potential risks. Additionally, these automation tools and software also keep the contracts stored in one place and give the organization control over the contract life cycle.
In summary, it is vital to choose the right technology to ensure a seamless transition into modernizing your legal contract lifestyle management.