Contract Management Process
Make the Contract Management Process More Efficient with Less Risk
Contract management, also known as "Contract Lifecycle Management (CLM)" is a cyclical process in most cases. That is to say, contracts are created, reviewed, approved, executed, renewed, and amended. Managing the workflow of this process can be automated with significant benefits:
Poor interdepartmental communication, confusion, missed deadlines, non-compliance, mistakes, risk exposure—you've probably experienced at least some of these issues with your contract management process. You're not alone. Organizations large and small, profit and non-profit, still use old-school methods like email and paper to manage contracts. Whether contracts involve customers, vendors, partners, or employees, your organization needs a reliable system for Contract Lifecycle Management (CLM) to avoid risk and improve financial performance.
When used to manage the contract lifecycle, workflow automation platforms allow your team to design custom contract workflows that regulate the tasks involved in submitting, reviewing, collaborating on, and, ultimately, approving contracts in a standardized way.
Start by using information capture forms, it's possible to capture documents and the contract metadata like dates, expirations, baselines, commitments, related documents, and other information about the contract itself that can be reported on or acted upon later.
Once contracts or requests are submitted, they can be routed to any individual or team in the organization based on business rules and form data. For instance, a contract could be routed based on an amount, a type, a customer, etc. Business rules built behind the scenes guide the path of a contract throughout the process.
Next, set up task alerts, reminders, and escalations to ensure that contracts in the process move forward as rapidly as possible. For example:
By providing employees with a central portal for submitting, requesting, and tracking contracts, timeliness, contract renewals, and productivity are dramatically increased.
After implementing a workflow automation solution, the contract process becomes more streamlined. In some cases, approvals for contracts are received in a matter of hours, down from days or even weeks. Custom alerts and triggers ensure that anyone involved in the process is aware of their next task and when it's due. Redlines can be attached and sent back to the requestor for review.
If desired by the organization, anyone submitting the request for contract review or creation can visually track the entire path of the submitted documents and where they are in the contract process. Any stakeholders, including the requester, can receive alerts as the process moves from task to task. In addition, those with the appropriate access can comment during the process as needed and these comments are preserved in the audit trail.
All versions of documents and files (including images) reviewed and created during the contract process are stored permanently as part of the process record. This allows internal or external auditors to go back to any point in the process and see what document was part of any activity (submission, review, approval, authorization, etc.). This is a boon to internal corporate governance efforts.
Once the process is complete and the contract is finalized, it can be pushed into the organization's document management tool of choice for archival. Meanwhile, the entire task and activity history of the process is recorded and permanently available for an audit anytime.
As part of Oakland Unified School District's accountability and quality priorities, it needed to automate certain manual tasks that were bogging down its staff in paperwork and manual follow-up. In search of a simpler way to initiate vendor contracts, approve companies that do work for the district, and ascertain the necessary approvals from various levels within the district administration, OUSD turned to Integrify for an automated request management solution.
We have a variety of resources to help you on your journey to an automated workflow.
To see how quickly you can begin automating contract workflow and auditing, request a demonstration or trial of Integrify.
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