In a constantly evolving, multi-disciplinary business environment, effective collaboration is essential for success. Whether it's between internal teams or external partners, clear communication and alignment are critical to ensuring that business operations run smoothly. However, when it comes to managing contracts, many organisations struggle with silos—where different teams use disparate tools and processes to manage contracts, leading to poor communication, misalignment, and confusion. These challenges often result in delays and errors that can hinder business performance.
The good news is that these issues can be addressed by implementing a centralised Contract Lifecycle Management (CLM) system. A CLM system provides a unified platform where all stakeholders can collaborate, track changes, and maintain version control, ensuring that everyone is on the same page throughout the contract lifecycle. In this blog post, we'll explore the pain points associated with siloed contract management, discuss how a centralised CLM system can enhance team collaboration, and highlight the key benefits of adopting a unified approach to contract management.
The Challenges of Siloed Contract Management
Silos are a common problem in many organisations, particularly when it comes to contract management. Different departments—such as legal, finance, procurement, and sales—may each have their own processes, tools, and systems for managing contracts. While these tools may work well within individual departments, they can create significant challenges when it comes to cross-functional collaboration.
1. Poor Communication and Misalignment
When teams work in silos, communication becomes fragmented. For example, the legal team might be using one tool to draft contracts, while the sales team uses another system to track customer agreements. This lack of a unified platform makes it difficult for teams to share information, leading to misalignment and confusion. Key details can easily be lost or misinterpreted, and teams may not have access to the most up-to-date version of a contract. This poor communication can lead to misunderstandings, duplicated efforts, and, ultimately, errors in contract execution.
2. Inefficiencies and Delays
Siloed contract management processes can also lead to significant inefficiencies and delays. When different teams are not aligned, it can be challenging to move contracts through the various stages of the lifecycle—such as drafting, negotiation, approval, and execution. For example, if the legal team is unaware that the sales team has made changes to a contract, it could lead to delays in the approval process as the legal team needs to review and approve the changes. Similarly, if the procurement team is not informed about contract deadlines or renewal dates, they may miss critical milestones, leading to potential disruptions in business operations.
3. Increased Risk of Errors
The lack of coordination in siloed contract management processes also increases the risk of errors. Without a centralised system to track changes and maintain version control, it becomes difficult to ensure that everyone is working from the same document. This can lead to discrepancies between different versions of a contract, with different teams potentially working from outdated or incorrect information. These errors can have serious consequences, such as failing to comply with legal requirements, missing key contractual obligations, or entering into agreements that are not in the best interest of the organisation.
The Solution: Centralised Contract Management with a CLM System
To overcome the challenges of siloed contract management, organisations need to adopt a centralised approach. A CLM system provides a unified platform where all stakeholders can collaborate and work together throughout the entire contract lifecycle. By bringing together all teams, departments, and external parties in one system, a CLM solution enhances communication, improves alignment, and reduces the risk of errors.
1. Enhanced Collaboration and Communication
One of the most significant benefits of a CLM system is its ability to enhance collaboration and communication among teams. With a centralised platform, all stakeholders have access to the same information and can work together in real-time. This eliminates the need for back-and-forth emails, reduces the risk of miscommunication, and ensures that everyone is on the same page. For example, the legal team can easily share draft contracts with the sales team for review, while the procurement team can track contract milestones and deadlines. This seamless communication helps to ensure that contracts are executed efficiently and effectively.
2. Streamlined Processes and Reduced Delays
A centralised CLM system also streamlines contract management processes, reducing delays and improving overall efficiency. By providing a single platform for managing the entire contract lifecycle, a CLM system ensures that contracts move smoothly through each stage—drafting, negotiation, approval, and execution. Automated workflows can be set up to route contracts to the appropriate stakeholders for review and approval, ensuring that nothing falls through the cracks. Additionally, real-time tracking and alerts help to keep everyone informed about the status of contracts, reducing the risk of missed deadlines and ensuring that contracts are executed on time.
3. Improved Version Control and Reduced Risk of Errors
Maintaining version control is another critical advantage of using a CLM system. With a centralised platform, all changes to a contract are tracked automatically, providing a clear audit trail and ensuring that everyone is working from the most up-to-date version of the document. This reduces the risk of errors and discrepancies between different versions of a contract, helping to ensure that contracts are accurate and compliant. Additionally, a CLM system can enforce standard terms and conditions, reducing the risk of entering into agreements that are not in the best interest of the organisation.
Key Benefits of a Centralised CLM System
By adopting a centralised CLM system, organisations can unlock a range of benefits that enhance team collaboration and improve contract management processes. Here are some of the key benefits:
· Unified Platform for Collaboration: A CLM system provides a single platform where all stakeholders can collaborate, track changes, and maintain version control, ensuring that everyone is aligned throughout the contract lifecycle.
· Improved Communication: By bringing together all teams, departments, and external parties in one system, a CLM solution enhances communication and reduces the risk of misalignment and confusion.
· Streamlined Processes: A centralised CLM system streamlines contract management processes, reducing delays and improving overall efficiency.
· Reduced Risk of Errors: With automated tracking and version control, a CLM system reduces the risk of errors and discrepancies, ensuring that contracts are accurate and compliant.
· Enhanced Compliance: A CLM system helps to ensure that all contracts comply with legal, regulatory, and internal policy requirements, reducing the risk of non-compliance and associated penalties.
· Better Visibility and Control: A centralised CLM system provides real-time visibility into the status of contracts, enabling organisations to track performance, monitor key dates, and ensure that contracts are executed effectively.
Conclusion: Enhance Team Collaboration with a Centralised CLM System
In an increasingly complex and fast-paced business environment, effective contract management is essential for success. However, many organisations still struggle with silos and fragmented processes that hinder collaboration and lead to delays and errors in contract execution.
SaaSam is a recognised partner of Agiloft and we have been leveraging Agiloft’s no-code CLM platform for 12+ years. By implementing an Agiloft Contract Lifecycle Management (CLM) system, organisations can break down these silos and enhance team collaboration. A CLM system provides a unified platform where all stakeholders can work together, track changes, and maintain version control, ensuring that everyone is aligned throughout the contract lifecycle. This not only improves communication and collaboration but also streamlines processes, reduces the risk of errors, and enhances overall efficiency.
Don’t let silos hold your organisation back. Invest in a CLM system and unlock the full potential of your contracts by fostering seamless communication and ensuring that all stakeholders are aligned and working together towards a common goal. With a centralised approach to contract management, you can enhance team collaboration, improve contract execution, and drive better business outcomes.
If your organisation would like to make the jump to a higher level of contract management maturity with the Agiloft Contract Lifecycle Management solution, reach out to SaaSam using the form here!
About SaaSam
SaaSam is a global software consulting and implementation provider, with a proud association and history of delivering solutions through software. SaaSam has been leveraging some of the world’s most innovative no-code and low-code software platforms that empower our customers to drive business outcomes.
SaaSam is headquartered in Cambridge, New Zealand. We have a team of 26 expert employees spread across five company offices in New Zealand, Australia, the United Kingdom, the European Union (Ireland), and the United States. SaaSam has long-standing relationships with a diverse range of successful organisations across the following industries: IT and Telecommunications, Finance and Banking, Primary Industries (mining and horticulture), Pharmaceuticals and Biotechnology, Utilities, Government bodies and many others.
Our culture, driven by values of Integrity, Innovation, Commitment, Passion, and Accountability, embodies the Kiwi spirit.
