We live in an era when the work scope of in-house legal counsels isn't limited to merely drafting legal documents or providing legal advice. Today, in-house counsels have duties that span the legal field. Firms expect them to perform para-legal tasks like giving strategic advice and simultaneously execute regular legal chores. Expectations awaken in-house counsels' productivity; nevertheless, it surges their workload high enough to open scope for errors. That's when they need AI-powered Contract Lifecycle Management (CLM) tools.
Lack of visibility:
A bird's-eye-view over all the contracts is imperative to evade unwarranted legal, financial backlashes caused by incompliances or errors. However, every legal team knows how challenging the job is with manual contract management.
Cutting in-house counsels' time on repetitive contracts allows them to be more proactive in making crucial legal strategies for the firm, especially if the legal team is small-numbered. Even internal teams like HR can draft simple daily agreements if supplied with legally-sound customizable templates, but it's implausible in manual contract management.
Contract management is a significant task of in-house counsels, forming the foundation of their subsequent duties. As guardians of the legal aspects of the firm, they constantly draft, execute and renew lots of paper-based contracts, which often becomes so voluminous that they end up wasting much time digging up the required documents.
Contract management includes getting contracts approved by relevant stakeholders. But with manual contract workflows, it isn't as simple as it sounds; it requires navigating contracts through various internal teams. It demands efficient coordination, soaking significant time.
The plights go on. The point is, manual contract management consumes time and money and is laborious, ultimately reducing legal teams' efficacy.
Let’s now know how CLM can prove to be companions of in-house counsels.
Tracking the status of all contracts is one of the primary functions of in-house counsels. Nevertheless, they are human too, and there is a limit to their efficiency in overseeing every contract. It's practically impossible for any in-house counsel to know the accurate status of hundreds of active contracts. But failing it unlocks legal and business risks. That's why every legal team needs CLM software to review terms, mitigate risks, track progress, recall deadlines and essentially have a 360-degrees view of every contract.
Better productivity, lesser workload:
Did you know in-house counsels manage 97% of the firm's contracts? Nevertheless, many such contracts are repetitive and easy enough for non-legal teams to manage. CLM platforms provide a wide range of contracts templates, facilitating non-legal teams like HR and Sales to draft simple daily contracts like Employee Agreements and invoices on their own. It will liberate internal teams from requiring the legal teams for drafting minor contracts documents and spare time for the legal team to participate in high level legal, strategic activities. It will help in-house counsels know the firm's needs and goals better. Meanwhile, the in-house counsels can analyse the existing contracts, examine other legal teams' strategies, and mitigate risks.
With in-built CLM tools for secured inter and intra-team communication, in-house counsels can forget shuttling between emails and third-party applications to review or negotiate terms with internal teams and counterparties.
Steering contracts through various departments requires coordination between the legal team and the other teams; that's why it takes nearly 30 days to get one contract approved. In-house counsels equipped with CLM tools can collaborate with internal teams with ease and speed. It puts the negotiation and approval processes on autopilot, so the in-house counsels need not run between various departments to get the contracts finalized.
Robust storage-retrieval tools:
Contracts-based data are massive and demand a sophisticated database. Manual contract management is vulnerable to complications like loss, theft, data breach, material damage, etc., bestowing the legal team an additional unwanted workload of refiling the same documents. Stocking paper-based contracts and refiling them exhausts both time and money. But with cloud storage and extensive search filters of CLM software, in-house counsels can instantly retrieve desired contracts-documents at short notice, farewelling the pain of rummaging tons of other documents. Cloud storage provides a secure haven for all the contracts of the legal team and allows only authorized persons to access them.
So, why does every in-house counsel need CLM? Because it can significantly cure their pain points. In-house counsels equipped with CLM tools can deliver more profitable services than merely managing legal matters. With the growing need for fast-paced, strategically-accentuated in-house counsels, it's high time that enterprises embrace CLM tools. Award-winning CLM platforms like The Legal Capsule help legal teams smoothly transition from manual to automated contract workflows. Want to know how? Book a free trial or request a demo with The Legal Capsule today.