Navigating Contract Lifecycle Management with Zegal: A Game Changer for Businesses
By Tom Odlin, Updated: 2023-08-21 (published on 2023-05-23)
As businesses evolve in this digital age, the importance of efficient contract lifecycle management (CLM) cannot be overplayed. CLM is a crucial aspect of corporate governance that involves the management of contract creation, execution, and analysis to maximise operational and financial performance while minimising risk.
It’s a complicated process, but modern solutions like Zegal make it simpler, more effective, and more efficient.
What is Contract Lifecycle Management (CLM)?
Contract Lifecycle Management (CLM) is a strategic approach to managing all aspects of the contract process within a business or organisation.
This lifecycle encompasses all stages from contract initiation through drafting, negotiation, approval, execution, obligation management, amendment and renewal, and termination.
Each lifecycle stage requires a careful approach, as every contract represents a potential risk or reward for the organisation. Here’s a brief look at each step:
- Initiation: The process starts when one party identifies the need for a contract. It involves the creation of a contract request that specifies the necessary details, such as parties involved, terms of the contract, obligations, and more.
- Drafting: This phase involves creating the initial contract document, using either a standard template or drafting a customised contract.
- Negotiation: Here, all parties involved review the draft and negotiate terms. This process may involve several rounds of revisions until a mutual agreement is reached.
- Approval: Once the contract’s terms are finalised, it needs to be approved by the necessary stakeholders within each organisation.
- Execution: The contract is formally executed when all parties sign the document.
- Obligation Management: This involves tracking and ensuring all parties fulfil their obligations as outlined in the contract.
- Amendment and Renewal: Over the contract’s lifespan, it may need to be amended or renewed in response to changing circumstances. This process involves reviewing the contract, making any necessary changes, and obtaining approval.
- Termination: This is the end of the contract, which could occur due to the contract’s expiration, a breach of contract, or completion of all obligations.
Effective CLM provides improved operational efficiency, enhanced compliance, better risk management, and more robust relationships with clients, vendors, and partners.
It’s a critical function for any business that regularly deals with contracts, and with solutions like Zegal, this complex process can be significantly simplified and optimised.
Understanding Contract Lifecycle Management (CLM)
Contract Lifecycle Management involves several steps, from initiation and drafting to negotiation, approval, execution, obligation management, amendment and renewal, and contract termination.
CLM effectiveness directly impacts a company’s relationships with clients, suppliers, employees, and more, and it also plays a vital role in regulatory compliance, cost efficiency, and overall business productivity.
Why Zegal for CLM?
Zegal revolutionises Contract Lifecycle Management by integrating cutting-edge technology with traditional legal processes. It’s built to simplify and streamline contract management processes, offering unique benefits:
- Simplified Contract Creation and Review: Zegal’s platform hosts thousands of legally compliant templates to speed up contract creation and review. It incorporates machine learning and AI to automate contract drafting, reducing the time and human errors involved in this process.
- Efficient Collaboration and Negotiation: Zegal provides a platform for real-time collaboration and negotiation. Multiple parties can work simultaneously on a contract, with changes tracked and notified in real-time. It reduces the time taken in back-and-forth emails and makes negotiations more efficient.
- Automated Approval Process: With Zegal, businesses can establish approval workflows to ensure that all contracts undergo a consistent review and approval process. This increases accountability and significantly reduces the risk of legal issues in the future.
- Centralised Repository: All contracts in Zegal are stored in a central repository, making it easy for businesses to access, manage, and track all of their legal documents in one place. It eliminates the risk of losing vital contracts and helps businesses stay organised.
- Automated Obligation Management and Renewal Reminders: Zegal’s platform automatically keeps track of obligations and sends renewal reminders. This ensures that businesses never miss a contract renewal deadline, reducing the risk of contract lapses and non-compliance penalties.
- Enhanced Security: Zegal provides robust security measures to safeguard all contractual documents, ensuring they are protected against unauthorised access and potential breaches.
CLM is a necessity for any business
In the ever-evolving corporate landscape, having an effective and efficient Contract Lifecycle Management solution is not just an option but a necessity.
Zegal offers a holistic approach to CLM, revolutionising how businesses handle their contracts from inception to completion.
It’s time to maximise efficiency, improve compliance, and minimise risks associated with contractual obligations by embracing Zegal’s CLM solution.