Changes in the legal sector have been happening for some decades on a global scale. But since 2018, due to innovations in the legal technology industry, more efficient tools have emerged to help solve the industry’s key challenges.
In this context, Contract Lifecycle Management (CLM) has taken contract management to the highest level and shed new light on how the legal industry and businesses relate to contract processes.
The changes are obvius, especially when it comes to reducing manual tasks, costs and achieving better compliance in processes the contracts.
Thus, legal professionals put aside the manual activities that previously occupied their time. And as a result, these activities are replaced by smarter tasks, such as planning and customer service.
That is, o CLM has become a baseline for lawyers to hone their personal and professional skills.
In fact, Legaltechs have been putting a new set of solutions at the fingertips of legal professionals to automate the creation, negotiation and approval of their clients’ contracts through CLM.
Finally, check below for a summary of what CLM is and the key benefits for the legal industry.
What are the benefits of Contract Lifecycle Management?
Contract Lifecycle Management is a tool designed to accelerate the hiring process and maintain compliance.
This is a solution that not only automates the process of creation, signatures, and storage but also has the ability to map processes and simplify negotiation.
For this reason, a contract management platform already solves problems that lawyers themselves would not have the time and availability to perform in their daily routine.
Therefore, CLM has stood out for reducing bureaucracy and manual tasks, reducing organizational costs, minimizing errors and driving greater compliance with regulations. Benefits that maximize the operational efficiency of legal departments and lawyers in general.
In short, this strategic combination of processes and technology ensures that organizations get the most out of their contracts.
How can the legal sector benefit from CLM?
For legal departments that manage hundreds of complex contracts or agreements, only the combination of effective technology and processes can ensure control, risk mitigation, and increased contract value.
In brief, CLM is designed to be a fast and effective solution to fully simplify the contract life cycle.
Its primary role is to remove deficiencies in contract creation, negotiation, approval and renewal.
Also, one of its strengths is to offer advanced storage capabilities, as by storing contracts in the cloud. With cloud storage, legal teams gain visibility and increase collaboration.
Here are CLM features that remove issues from the contract creation, negotiation, approval, and renewal steps.
The Contract Lifecycle Management:
– Provides centralized storage.
– Facilitates the localization of documents and audits.
– Helps in data analysis and trend identification.
– Provides resources for a proactive approach to contract management.
– Helps assign tasks related to the people needed in the process;
– Provides standardized templates, clause libraries, and languages;
– Provides the use of alerts and notifications to speed up the process;
– Avoid automatic unfavorable renewals to the business;
– Eliminates missed deadlines and payment errors.
Undoubtedly, all of the above highlight benefits such as cost savings, performance optimization, and increased productivity.
For all these reasons, it can be said that implementing a CLM solution will make your legal practice more dynamic and productive.
Finally, for visionary lawyers, contract management automation is not just another alternative, but the best way to immerse in the technological evolution of the legal sector.