Welcome back to the blog series where we identify the six stages of the contract lifecycle, note the most common reasons contracts get "stuck" in each stage, and show you how to speed up the contract workflow. If you missed the first post, check it out here. If you’re all caught up, here are three more ways.
Stage 4: Clean
A clean contract is a contract that is fully approved and ready for both signature and countersignature. It just hasn't been signed yet.
Contracts Get Stuck Here Because…
… nobody tells the authorized signers the contracts are ready, or there are simply not enough authorized signers to handle the volume of contracts in a timely fashion.
How to Fix It
Integrate your contract lifecycle management (CLM) solution with your preferred eSignature tools so that as soon as a contract reaches the clean stage, it's sent out for signature. And if your contract dashboard still shows contracts getting stuck here, look into getting more (or different) authorized signers.
Stage 5: Signed
A signed contract is a contract that your party has signed and is prepared to execute.
Contracts Get Stuck Here Because…
...the other parties to a contract don't know it's their turn to sign, or they are "sitting" on a deal for reasons unknown.
How to Fix It
Your eSignature tool should send out status updates when any party signs an agreement, automatically informing both your counter-parties that it's time for them to sign and inform your internal sales team to follow up on the deal.
Stage 6: Countersigned
A countersigned agreement has been signed by all parties to the contract, which means it's already in effect. Not knowing your contract is in this stage has the biggest consequences.
Contracts Get Stuck Here Because…
...the legal team receives a countersigned agreement but doesn't share that information with the rest of the organization.
How to Fix It
Integrate your eSignature tool with your CLM solution, so as soon as an agreement is executed, it is automatically added to your contract repository. Once a signed contract is on file, everyone can act accordingly.
Start With Software
The best way to make any contract management process successful is to use cutting-edge software. Human error and human distractions are the leading reasons contracts get "stuck" at each stage of their lifecycle, and a good CLM – with a contract status dashboard -- is the best way to keep contract development moving.
With CLM in place, you can identify where your contract development bogs down and solve the problem. If you're ready to get your contract management process "unstuck," contact LinkSquares today.
