The Painful State of Contract Management
In today's fast-paced business environment, managing contracts efficiently is more critical than ever. However, many organizations find themselves caught up in the complexities of their contract management processes, or lack thereof. The "current state" of contract management often presents a number of challenges that can hamper a business's ability to operate effectively, impacting everything from revenue to compliance. In a recent webinar, LegalSifter CEO Kevin Miller highlighted several contract management challenges, drawing on real-world experiences.
Here are a few key challenges from that discussion.Revenue Leakage Due to Poor Change Control: A common pain point for businesses is revenue slipping through the cracks due to inadequate change control processes. Contracts outline the requirements for managing changes, but without clear processes, businesses can miss out on revenue opportunities or incur unnecessary costs.
Overwhelming Obligations: Master services agreements and similar contracts can contain an exhaustive list of obligations. For businesses, keeping track of these and ensuring they are met can be overwhelming, often requiring significant resources and attention to detail.
Difficulties in Operationalizing the Contract: Another significant challenge is making the critical information within contracts accessible and understandable to those who need it across the organization. The legal jargon and complexity of contracts mean that essential terms and obligations are not always clear to non-legal teams, hampering operational efficiency.
Lack of Preparedness for Critical Events: Contracts contain vital information on how to handle extraordinary events, such as force majeure situations or security breaches. However, when this information is buried in dense contract documents, businesses may not be able to respond as quickly or effectively as needed, in the event of an emergency.
The need for clarity, accessibility, and efficiency in managing contracts is obvious. Addressing these issues requires a strategic approach that not only simplifies the process but also ensures that contracts are leveraged to drive business value rather than hinder it. If you recognize these obstacles within your organization, it's time to explore how LegalSifter's Contract Control Program can transform your approach to contract management. Schedule a demo today and discover how we can help streamline your processes, reduce risks, and drive business value forward.
