In 2023, silos are out, and cross-functional collaboration is in.
It’s becoming increasingly difficult for legal departments to perform their functions well without working with other teams. For example, without sales, legal can struggle with deal prioritization, and without procurement, legal will bear the burden of compliance alone.
Since contracts touch every area of business, it’s crucial that legal teams work well with other departments to generate more revenue, increase process efficiency, and drive the business forward.
Here are some ways that legal can work with other teams to move the needle.
Align with Procurement/Finance to Deliver Value
When most people hear “contract management,” they think about legal. And, of course, legal should always be aware of contracts (and their substantive content) as they move in and out of the business. But given how closely tied contracts are with revenue recognition and cash flow, contract management is well-suited as a joint effort between legal, procurement, and finance.
Cost efficiency, for example, is a shared concern between the functions. Both teams are vested in ensuring that the contracts between the business and their vendors are executed at the right price point, protect the company, and meet compliance needs. Together, they share the burden of mitigating corporate risk and saving the business money.
Accelerate Deals with Sales and Customer Success
Deals can and do get done in a silo, which often means delays, inaccurate data, and decreased revenue. Though legal isn’t always customer-facing like sales and customer success (CS) are, their contract process and negotiation skills can make or break the sales cycle, as well as whether or not the business recognizes revenue on time.
Sales and CS can work with legal to develop templates for standard contracts, build a playbook for different contract types, and execute contracts accurately and quickly, ultimately a positive for excellent customer experience.
Together, these teams can assess contracts to plan for future quarters and fiscal years. By evaluating contracts and customer accounts, legal will know which contract types are most common, sales can determine which deals to prioritize, and CS will know which customers are on track to have the most success with the product.
Provide High-Level Metrics to the C-Suite
In addition to protecting the business, legal also has a seat at the executive table and provides business solutions. It’s no longer enough to just think like a lawyer. By working with all business functions, legal can provide the executive team with insight into how contracts perform in certain markets, contract metrics that help guide the go-to-market (GTM) strategy, and ways to look ahead to upcoming regulations that might require major changes in business practices.
Contract lifecycle management (CLM), especially as it integrates with other tools like Salesforce, provides crucial business data that can help the C-Suite to make informed, data-driven decisions.
Takeaways
Legal provides so much value to the business, even more so when they collaborate with other departments. CLM tools can deliver data and insight into each business unit and enable smart decision-making. See how LinkSquares can help improve legal collaboration. Request a demo today.
