As businesses grow, so do the challenges that come with managing an increasing number of contracts. From vendor agreements and client contracts to employee-related documents, the volume and complexity of contracts can quickly become overwhelming. For many businesses, the administrative burden of managing these contracts increases disproportionately, leading to inefficiencies, errors, and even lost opportunities. Without a robust system in place, scaling contract management processes can be a significant hurdle that hampers growth and operational efficiency.
In this blog post, we will explore the pain points associated with managing contracts in a growing business, the benefits of implementing a Contract Lifecycle Management (CLM) system, and how such a system can help you scale effortlessly by adapting to your increasing contract volume and complexity without adding administrative burden.
Growing Pains
As a business expands, its contract portfolio inevitably grows in both sise and complexity. This growth, while a positive indicator of business success, brings with it a host of challenges:
1. Increased Administrative Burden
One of the most immediate impacts of business growth is the surge in administrative workload related to contract management. As the number of contracts increases, so does the amount of time and effort required to manage them. Without a CLM system, businesses often rely on manual processes, such as tracking deadlines in spreadsheets, storing contracts in disparate locations, and manually reviewing documents for compliance. This manual approach is not only time-consuming but also prone to human error. The more contracts a business has to manage, the greater the likelihood of mistakes, such as missed deadlines, overlooked clauses, or incomplete records.
2. Complexity in Contract Terms
As businesses grow, they often enter into more complex contracts that involve multiple stakeholders, intricate terms, and varied compliance requirements. Managing these contracts manually becomes increasingly difficult, particularly when it comes to ensuring consistency and compliance across all agreements. For example, a growing company may need to negotiate contracts with international vendors, which could involve navigating different legal systems, languages, and business practices. Without a centralised system to manage these complexities, businesses risk inconsistencies in contract terms and potential legal issues.
3. Difficulty in Tracking and Reporting
With growth comes the need for greater visibility into contract performance. However, tracking and reporting on a growing portfolio of contracts can be challenging without the right tools. Manual tracking systems are often unable to provide the real-time insights needed to make informed decisions. As a result, businesses may struggle to monitor contract performance, assess risks, or identify opportunities for improvement. This lack of visibility can lead to missed opportunities, such as failing to renegotiate favorable terms or overlooking key milestones.
4. Risk of Non-Compliance
As the number of contracts increases, so does the risk of non-compliance with contractual obligations. Ensuring that all contracts are compliant with legal, regulatory, and internal requirements becomes more challenging as the complexity of agreements grows. Without a CLM system, businesses may find it difficult to keep track of compliance requirements, leading to potential legal risks and financial penalties.
Scaling With a CLM System
A Contract Lifecycle Management (CLM) system offers a powerful solution to the challenges of managing a growing contract portfolio. Designed to scale with your business, a CLM system provides the tools and automation needed to manage contracts efficiently, regardless of volume or complexity. Here’s how a CLM system can help your business scale effortlessly:
1. Automation Reduces Administrative Workload
One of the primary benefits of a CLM system is its ability to automate many of the administrative tasks associated with contract management. From contract creation and approval workflows to renewal reminders and compliance checks, a CLM system automates processes that would otherwise require significant manual effort. This automation not only reduces the time and resources needed to manage contracts but also minimises the risk of human error. As your business grows, a CLM system can handle the increasing workload without requiring a proportional increase in administrative resources.
2. Centralised Contract Management
A CLM system centralises all contract-related information in a single, accessible platform. This centralised approach ensures that all contracts are stored in a consistent format and are easily searchable. Whether you need to retrieve a specific contract, review terms, or track compliance, a CLM system provides quick and easy access to the information you need. Centralisation also simplifies the process of managing complex contracts, as all relevant documents and data are stored in one location, reducing the risk of inconsistencies or lost information.
3. Scalability to Handle Growing Complexity
As your business grows, so too does the complexity of your contracts. A CLM system is designed to scale with your business, offering the flexibility to manage increasingly complex contracts without adding administrative burden. Whether you’re dealing with multi-party agreements, cross-border contracts, or contracts with intricate compliance requirements, a CLM system can adapt to your needs. With features such as customisable templates, automated compliance checks, and advanced approval workflows, a CLM system simplifies the management of even the most complex contracts.
4. Enhanced Visibility and Reporting
A CLM system provides real-time visibility into your contract portfolio, allowing you to track performance, assess risks, and identify opportunities for improvement. With built-in reporting and analytics tools, a CLM system enables you to generate detailed reports on contract status, compliance, and key performance indicators. This enhanced visibility supports better decision-making and strategic planning, helping you to maximise the value of your contracts as your business grows.
5. Ensured Compliance and Risk Management
Compliance is a critical aspect of contract management, particularly as your business expands into new markets or industries. A CLM system helps ensure that all contracts comply with legal, regulatory, and internal requirements. With automated compliance checks, audit trails, and standardised templates, a CLM system reduces the risk of non-compliance and helps protect your business from legal and financial risks. As your contract portfolio grows, a CLM system provides the tools needed to manage compliance effectively, reducing the burden on your legal and compliance teams.
CLM System for Growing Businesses
Implementing a CLM system offers numerous benefits that can help your business scale efficiently and effectively:
· Reduced Administrative Burden: Automation and centralisation reduce the time and effort required to manage a growing contract portfolio, allowing your team to focus on strategic tasks.
· Scalability: A CLM system is designed to scale with your business, providing the flexibility to manage increasingly complex contracts without adding administrative workload.
· Enhanced Visibility: Real-time insights and reporting tools provide greater visibility into contract performance, supporting better decision-making and strategic planning.
· Improved Compliance: Automated compliance checks and standardised templates help ensure that all contracts meet legal, regulatory, and internal requirements, reducing the risk of non-compliance.
· Efficient Contract Management: A CLM system streamlines the entire contract lifecycle, from creation and negotiation to approval and renewal, improving overall efficiency and effectiveness.
Scale with Confidence!
As your business grows, managing an expanding contract portfolio can be a significant challenge. Without the right tools, the administrative burden, complexity, and risk associated with contract management can quickly become overwhelming. However, a Contract Lifecycle Management (CLM) system offers a solution that scales with your business, providing the tools and automation needed to manage contracts efficiently and effectively.
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, your business will be able to scale effortlessly. With a CLM system in place, you can manage the increasing volume and complexity of contracts with confidence, ensuring that your business continues to thrive and grow.
Don’t let the challenges of contract management hold your business back. Invest in a flexible, scalable CLM system, and empower your team to manage contracts with ease, no matter how large or complex your portfolio becomes. With the right system in place, you can focus on what truly matters—growing your business and achieving long-term success.
If your organisation would like to make the jump to 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.
