With the end of 2022 in sight, now is the time businesses become hyper-focused on closing deals. Sales activity levels will likely escalate, which means contract requests will not only go through the roof, but each contract will also become the most important contract ever, needing to go out immediately.
Sales and legal have the same agenda — to execute high-value contracts — but their functional differences are at odds. While the sales team is driven to close the deal as quickly as possible, legal must prioritize risk mitigation, where necessary. The resulting friction can warp lines of communication and make the end-of-year (EOY) push strained.
Together, legal and sales teams need to refine their shared agenda and optimize their processes to improve communication, get on the same page about expectations, and reduce contract close times using technology. Navigating these obstacles and problem-solving together sets both teams up for success in closing the year and looking forward to the next.
Here are some tips for partnering with your sales team to get more deals across the finish line while still protecting the business.
Set Communication Standards
Things can easily get lost in translation during the end-of-year shuffle. Contracts can get lost in inboxes, and intense redlines can extend contract review and approval by days or weeks. Next thing you know, there’s a sales rep Slacking you about the MSA she hoped to get out by end of the day, sales leaders pinging you about the liability clause for an international contract, and many more unread notifications.
Set the tone for the end-of-year by setting expectations. For example, depending on your contract volume and commonly executed agreements, you may set the standard for which contracts you will prioritize and the average turnaround time to expect for certain agreements. That way, you’ll have fewer DMs for contract status updates, and sales reps won’t think you left them hanging.
Standardize Contract Language
Often, contract negotiation can hold up a deal. The ping pong between your legal team and your to-be client redlining and trying to present the terms that best serve their companies can draw out a deal for weeks. And some of this could be avoided if sales reps had the autonomy to alter contract language (within approved thresholds) and send it out directly, since they already have a better rapport with them.
Legal teams can create a library of pre-approved legal clauses that sales reps can switch out in contracts that meet certain criteria (e.g., specific contract types or contracts below a certain value). Rather than spending time getting up to speed on the context for a particular agreement, give sales the reigns. They know the account best; let them use discretion when presenting the contract. This way, they only need to involve you in the more nuanced deals.
Make Your Tools Talk to One Another
Each department in a business has software that they can’t live without. Like Contract Lifecycle Management (CLM) for legal teams, these tools enhance the efforts of the business function, allowing them to automate or otherwise optimize their tasks. Problems arise when two teams try to collaborate, but their tools don’t talk to each other.
The good news is the best CLM will talk to sales automation tools like Salesforce. With their data combined, both tools can provide a comprehensive view of the customer lifecycle while attaching contracts to contacts, so all the context for an account is in one place. Having all the customer’s information in one place can help grease the wheels of a deal since it’s easier to know what they need.
Preparing for the New Year
The collaboration between these two teams to get contracts and deals over the line doesn’t end after Q4. The best teams carry their learnings forward into the new year. Start thinking about how your collaboration can be less hectic throughout the year and at the end of next year.
CLM helps both sales and legal stay on the same page by allowing equal insight into in-flight and executed contracts while providing metrics that guide the way you design future processes. Metrics around contract volume, ACV, and common contract types can guide your cross-functional collaboration.
Takeaways
Legal and sales ultimately have the same agenda: Close more deals faster. Accomplish that by setting up communication standards, integrating your CLM and CRM data, and using CLM metrics to plan for the year ahead. With aligned legal and sales teams, your business is set up to crush your 2022 goals.
