Contractual agreements are indispensable to every organization, irrespective of its size and niche. They help business leaders earn the trust of clients, partners, investors, and other stakeholders.
From human resources and accounts to product development, each department in an organization relies on contracts to eliminate communication barriers and compliance risks.
But as companies transition to a hybrid working model and digitize business operations, traditional contract workflows won’t suffice. This trend underlines the need to adopt smart contract management solutions like ContractZen.
In this blog post, we’ll delve deeper into the challenges of traditional contract management, and how legal teams can overcome them with ContractZen. Let’s get started.
Contract Workflows: Challenges of the Traditional Approach
In the pre-digital era, contract management involved printing physical copies of a draft contract and running it back and forth between the involved parties. Each party would make changes to the various clauses before the final approval and signing. Thereafter, the concluded contract would be securely stored and archived.
The biggest problem with that approach is that it leaves room for clerical and typographical errors, as different parties are free to get their hands on the contract and make changes to it. Even a simple oversight could turn out to be expensive.
That was the case when Lockheed Martin lost $70 million due to an erroneous comma in a client agreement.
Also, the traditional contract workflow is flooded with security issues. Sending copies of agreements between different parties increases the risk of data breaches. It’s difficult for legal teams to track who has access to a document at any given time, which makes for risk of non-compliance as well. In addition to the aforementioned problems, manual contract management workflows are time-consuming and inefficient.
These challenges are further exacerbated by pandemic-driven remote work policies. The lack of transparency and uninterrupted communication in a hybrid workforce presents new challenges for legal departments. Simply digitizing contracts and sending them via email isn’t an effective solution.
Also, storing digitized copies of contracts and agreements across multiple folders makes it difficult for lawyers to find relevant information at the right time.
That’s where a contract management solution like ContractZen steps into the picture.
Smart Contract Workflows With ContractZen
ContractZen is a robust corporate governance software application that’s designed to cater to a diverse array of industries. Its features include:
- Contract management
- Virtual data rooms (VDR)
- Entity management
- Document generation
- Metadata-driven search
- Automated reminders
All these features work in tandem to help lawyers streamline contract workflows and minimize administrative paperwork.
Seamless Document Storage and Sharing
Importing legal documents into ContractZen is as simple as dragging each file onto the dashboard. Alternatively, lawyers can also forward emails to ContractZen, and let the software add them to your account’s storage.
With ContractZen, you can also create and configure a VDR in a few clicks. That makes it easier for lawyers to securely share contracts with key stakeholders.
Extensive data logging and reporting features make it easier for you to track how different users have modified a document.
ContractZen supports integration with numerous industry-standard e-signature services, such as:
- Adobe Sign
- Visma Sign
It eliminates the need for lawyers to get physical copies of contracts signed by involved parties. That, in turn, makes the contract workflow faster and more efficient. It’s particularly useful for today’s hybrid workforce. The best part is that ContractZen’s e-signature solutions are fully compliant with US and EU legislation.
Advanced Search Capabilities
ContractZen helps lawyers overcome the limitations of folder-based search. It uses metadata and AI-powered OCR to generate dynamic views of the stored documents, and allowing you to type in keywords to find files, even if those are scanned and therefore not text-based. You can even save search queries for future reference.
You can easily add custom tags to individual documents as well, organizing them according to project name, phase, agreement type or any other parameter that makes sense.
Automated Document Generation
ContractZen supports integration with DocFusion, an automated and template-driven document composition tool. It offers a broad spectrum of features that simplify the process of creating and modifying contracts.
Key features of DocFusion include:
- Template-driven document generation
- Rule-based content creation
- Drag-and-drop document builder
- Reusable legal clause libraries
- Approval-based template deployment
Apart from simplifying contract creation, these features ensure that no one makes unauthorized changes to your documents.
ContractZen deploys numerous security protocols, including RSA 256 encryption and digital rights management, to protect documents from cyberattacks and data breaches.
Also, it stores documents in Netherlands-based data centers that are protected by EU data privacy laws.
Leveraging the New Avatar of Contract Management
Traditional contract workflows are slow, inefficient, and prone to human error. With AI-powered contract management tools, lawyers can securely create, modify, share, and store important documents.
Metadata-driven search capabilities help them easily find and manage contracts as well. It’s high time legal teams adopt advanced solutions, such as ContractZen, to streamline contract management.