Contract Lifecycle Management: Improve efficiency, gain insight, reduce risks

CONTRACT LIFECYCLE MANAGEMENT

Improve efficiency, gain insight, reduce risks There would be no business without contracts. Contracts manage your risks and help to ensure compliance. Which is exactly why it is vital to manage them well. For the corporate legal team, actively managing contracts throughout their lifecycle is the fastest way to ensure compliance, reduce risk, enhance efficiency and provide transparency around contractual rights, obligations and opportunities. Could your team benefit from adopting contract lifecycle management?

CONTRACT LIFECYCLE

Lower your risks, create insights and move faster with contract lifecycle management Contract lifecycle management is a fast-growing business concept that improves compliance and efficiency while reducing risk. It further ensures that stakeholders within your company who need contract insight have it. Good contract lifecycle management makes your business faster and more flexible. It ensures you can identify your obligations, assess your risks, spot opportu-

Here are some indicators:

nities and develop mitigation strategies quickly.

• Your contracts are on paper and stored in people’s desks • Digital contracts are scattered across computers and departments, with no central repository

Legadex can help you take control with contract lifecycle management

• You have no clear overview of your contractual rights and obli-

As a specialist in contract lifecycle management, Legadex com-

gations, or insight into the associated risks and opportunities

bines consultancy services (advice on processes, authorisations,

• You have no structure people can use to pass on insights and

technical infrastructure, flows, alerts, metadata and more) with

information regarding contractual rights and obligations • It is unclear who is authorised to negotiate and execute differ-

implementation. We can advise on, deploy and run your contract management lifecycle system. And if you only want help in part

ent types of contract and no workstream to ensure the right

of the lifecycle, we can assist too. We define six phases in the

people are involved in the process and sign-off

contract lifecycle:

• You regularly get asked to draft and review contracts when that’s not your job • Negotiating contracts and obtaining approvals and signatures is taking up too much of your time

• Contract Generation • Negotiation & Drafting • Approval Flow • Signing & Execution • Retention & Audit (Repository) • Obligation Management

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Contract Generation



Signing & Execution

Contract generation involves centralising the contract

Like approval, contract signing can be automated within

creation process. Instead of people reusing old contracts

your organisation. Just set an authorisation schedule for

or contract templates to create new ones (which can

every agreement and ensure the signing tool includes

increase risk and reduce compliance), Legadex can fully

the correct signatories within your company. We can

automate the generation of contract drafts. The result

help you set this up and implement this in your contract

is that business users can create a fully completed

management system of choice.

contract simply by answering a couple of questions.

You can use these tools to build any contract you want.

Legadex can define the most effective questions to include, structure them and build them into your contract management system of choice.



Retention & Audit Retention and audit, also known as the repository of contracts, is where the legal department collates, structures and creates an overview of all contracts and makes these visible to everyone who needs them. This

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Negotiation & Drafting

is the traditional contract management element within

The vast majority of contracts are relatively simple

the total contract lifecycle. The repository is a mine of

agreements that require only limited negotiation. This

information covering end dates, obligations and risks.

means you can automate their review. In a contract

The repository is also where you define what metada-

management system, you receive marked-up versions of

ta to include with your contracts (automated or not).

the proposed contract. Contentious issues and proposed

These data fields are the basis for creating alerts and

changes are handled and managed by sending alerts to

notifications. As this is an ongoing need, we can manage

the people who need to see them. This keeps the legal

contract retention and audit as part of a Legadex man-

team’s involvement to a minimum while still ensuring

aged service.

that everything is checked and that the contract is fully compliant with your internal policies. And for simple, recurring agreements, we can review any comments and look after specific clauses. This way, your legal team only needs to look at high-risk changes.



Obligation Management Most companies do their own obligation management.

However, by creating suitable fields, filters and alerts, Legadex can help you to increase and maintain your control over your contracts, prices, renegotiation win-



Approval Flow

dows and so on. We can help identify what metadata

The vast majority of contracts are relatively simple

to include and how to structure the alerts so that the

agreements that require only limited negotiation. This

relevant people receive the alerts they need on time.

means you can automate their review. In a contract management system, you receive marked-up versions of the proposed contract. Contentious issues and proposed changes are handled and managed by sending alerts to the people who need to see them. This keeps the legal

Let’s talk about your needs

team’s involvement to a minimum while still ensuring

For more information, best practices and benchmarks,

that everything is checked and that the contract is fully

contact:

compliant with your internal policies. And for simple, recurring agreements, we can review any comments

Peter Schepens

and look after specific clauses. This way, your legal team

T: +31(0)20-8208396

only needs to look at high-risk changes.

E: pschepens@legadex.com