4 Ways to Develop a Contract Management Process

Before the dotted line is signed, contracts can face a long journey. Like vulnerable creatures leaving home for the first time, they often face challenges along the way (we’re talking about YOU, scanned PDFs.)

Developing a contract management process involves similar tests of fortitude. As contracts become more sophisticated over time, legal teams work in greater capacities and handle more complicated materials. Implementing the right contract lifecycle management (CLM) tool can help. But once you have the right tool, how do you develop a process that works?

The road ahead is long and arduous–but not if you do it right. Here are four ways to prepare for your contract management process journey:

#1: Embrace collaboration with other departments 

Contracts go through many reviewers and even departments, sometimes spanning into finance and HR territories. Establish an accountability best practice before the start of every agreement to ensure smoother redlines and better collaboration. The right CLM solution should be able to track every markup with the appropriate redliner, regardless of department.

You don’t have to be a hero when it comes to templates. Developing contract templates for your organization is a great way to standardize language, keep obligations consistent, and avoid having to “reinvent the wheel” every time a new contract is drafted.  

#3: Enable the wizardry of automation

AI isn’t magic. But using automation correctly can feel like magic. Modern software not only rids you of manual tasks and disparate systems but also reads, scans, and analyzes your contracts for you.

#4: Find one vendor to rule them all

Every quest seeks to find “a single source of truth.” Every good contract management solution includes a cloud-based repository for storage, viewing, and maintenance after that.

Let’s face it: it’s 2022: Finding the right CLM tool is essential. But without the right processes, you’re setting yourself - and your legal team - up for an impossible mission. 

Are you interested in learning about end-to-end contract lifecycle management? Contact LinkSquares today.