By Kristina Isagunde
Today, in-house legal teams are expected to be more efficient with less: they need to manage contracts, deliver legal support, protect the business and present greater value without increasing overheads or the headcount.
However, legal professionals have been slow at adopting new technologies that can support and automate their work. Instead, they continue to work manually. And contract management tops the list of the most time-consuming manual tasks for lawyers.
That said, general counsels (GCs) and legal teams can benefit hugely from using reliable contract management software. The contract lifecycle management (CLM) solution not only facilitates day-to-day legal work but also improves organizational efficiency and effectiveness.
If you’re still over the fence, unable to decide whether contract management software for legal teams makes sense, here are the top 5 ways in which your legal teams can benefit from CLM software.
Contract management software for legal teams: Key benefits
#1. Risk management – One of the top responsibilities of the legal department is to avoid missing renewal and termination dates. When it comes to risk management within your organization, there is one catch.
It is easy to miss certain clauses and keywords. Luckily, contract management software eliminates this risk by pointing out relevant dates and clauses for legal professionals.
The legal contract management software gives visibility into when the contracts are set to expire, the contracts that need to be renegotiated, and clauses that need to be reviewed. Along with making the life of legal teams easier, it reduces financial risks associated with delayed renewal dates.
#2. Seamless collaboration with other teams – Collaborating with multiple teams is challenging, especially when the workforce is in different countries and time zones.
Let’s take the example of legal teams tracking several contract versions, with edits and reviews – over email threads and in Word/PDF docs.
Instead, legal contract management software allows multiple parties to quickly review and work on the same contract version and track the changes to the contracts. The unified workspace will enable them to converse in real-time in the document sidebar and check previous versions. As a result, there is less back and forth when it comes to reviewing contracts.
#3. Automation improves efficiency – A software that manages your contract lifecycle automates several administrative tasks associated with contracts, making the process more efficient for everyone involved.
For example, contract automation for legal teams has the following benefits:
- Reusable contract templates accelerate the process of creating new contracts, as all new contracts are based on standardized templates. This reduces risks and improves performance.
- Import historical contracts and create a single contract repository. Use an AI-based contract management software to extract metadata and critical details from contracts. Filter through the repository using specific attributes to find contracts faster.
- AI-assisted reviewer identifies drafting errors that may otherwise go undetected.
Equipped with intelligent contract management software Revnue, legal teams become enablers for other departments instead of a blocker.
#4. Eliminate error-prone manual tasks – As per Gartner, on average, the legal department lawyer spends 25-40% of their time on tasks that don’t require a lawyer, leading to $2.7 million in lost productivity each year at a typical organization.
As a legal professional, you must be well aware of the process of manually reviewing contracts. Not only does searching and reporting on contracts take time, but it is also prone to human errors.
Reviewing contracts is repetitive and tedious work. On top of that, looking for specific clauses and keywords can be challenging, especially when the contracts and related documents span hundreds of pages.
Legal contract management software does all this work for you. The contracts tend to live in a data-rich repository wherein they can be easily searched, audited, and analyzed. Details like finding renewal dates, keywords, or clauses can be done with a few clicks. When the contracting process becomes more efficient, legal teams can focus on more important tasks.
#5. Intelligent contracts – With legal contract management systems in place, contracts are no longer static records of information. Leveraging contract intelligence helps you uncover relationships with customers. Actionable insights in the form of highlighting your most engaged or longest customers allow you to focus on building a referral chain and generating additional revenue.
Here, the contact management software for legal teams flags off clauses or parts that are most contested, corrected, or would harm the lifetime value (LTV) of paying customers. This data helps you assess your organization’s legal templates.
Contract management software: A turning point for in-house legal counsel
Having considered all these benefits, your next step should be finding the right legal contract management software for your business.
Looking for a contract tool that can add value at every stage of your contract lifecycle, reduce the low-value manual admin work for your legal teams, and can be implemented quickly? Revnue’s contract management software can help make your contract management process frictionless for the in-house legal counsel.
Kristina Isagunde is Director of Operations with Revnue.com.