Many legal teams are looking to add a contract status dashboard to their portfolio of software solutions so they have visibility into the status of contracts at any given time. This is a great idea with only one all-too-common flaw: legal teams too often limit access to this dashboard just to the legal team.
When your organization's ability to write and execute a contract directly affects sales revenue (and sales team commissions), multiple people in your organization want and need to know the status of contracts at any time. In this example, it includes:
- Sales: Both the individual sales rep and sales leadership team should be able to track where a new customer contract is in the process so that they know whether it’s still in legal, being approved by finance, out to the customer, or back and signed so that they can move the process along as needed and always know the best person to follow up with.
- Finance: Finance should be able to easily see what contracts need payment terms approved as well as what contracts are back and signed so that customers can be billed appropriately.
- Legal: Legal should be able to easily see what contracts need to be drafted, approved, and countersigned easily from one dashboard.
At LinkSquares, we recently worked with a customer that previously utilized a full-time legal operations person to monitor an email inbox dedicated to checking on the status of contracts. That inbox was set up so anyone in the company -- in particular, sales representatives -- could inquire about the status of any specific sales contract.
For 40 hours each week, this legal ops employee spent their time hunting down whether a specific deal was stuck in contract drafting, redlining, finalization, or was ready for signature. Every request was a unique scavenger hunt, requiring checks into multiple software tools and calls or emails to multiple employees within this organization (many of them on the legal and/or senior executive teams).
Having a dedicated person perform these tasks provided a huge value to the company because as the old adage goes, time kills all deals, and they helped keep things moving along. However, this wasn’t the most efficient use of the person’s time and these activities could easily be automated through a contract dashboard. By utilizing a contract dashboard and giving relevant parties access, this company was able to free up this full-time "investigator" to move on to more useful work (like finding out why some contracts get stuck in the development process).
Beyond saving this legal ops person’s time, opening access to the contract dashboard can also help speed up contract development. When it comes to rooting out corruption, it's said that "sunlight is best disinfectant." When it comes to rooting out inefficiency, sunlight is the best lubricant.
Once it becomes clear exactly how long it takes for contracts to get done, and in exactly which stages contracts get stuck, inefficiencies and delays can't hide. Everyone is more accountable for their role in expediting (or delaying) contract execution, because everyone knows exactly where their contact is -- drafting, redlining, finalizing or ready for signature -- at all times.
The status of your sales contracts should not be a secret from your sales team. Your contract status dashboard shouldn't be a secret, either. Don't stop at adopting a contract status dashboard; make it available to everyone who cares about executing contracts and accessible to anyone who has a stake in the revenue that contracts can deliver.
If you're ready to adopt the most intelligent contract automation solution on the market -- one which includes the intuitive, easy-to-access contract dashboard your organization desperately needs -- then contact LinkSquares today.