It’s not often Fortune 1000 companies update their contract management systems. In fact, it’s rare they even think about their contract management processes at all outside of compliance risk.
Sales effectiveness is constantly top of the mind in the C-Suite because they want to drive revenue through the roof. However, contract management is a powerful process that strongly affects not only the bottom line, but the top line as well. About 80% of this year’s top line revenue is tied to last year’s contracts. Contracts that people, frankly, don’t have much insight into.
2. 44% of companies said it takes more than two days to execute a standard non-disclosure agreement (NDA)
Here are the top 3 pervasive issues that lie within most companies’ contract management systems and what needs to be done in 2015 to address them: 1. 40% of Legal Departments lack insight into critical contract information
– In order to get next year’s sale, you need to know the status of your customer. What do they already have? What is compatible with what they’ve purchased? What were the prior terms in the agreement? This information needs to be factored into future deals to identify cross-sell,up-sell, and renewal opportunities. Not only that, but you’ll have happier customers who feel that your customer-centric
approach is responsive to their needs – all possible with an effective contract management system.
– Speed is imperative
in closing deals, and sales cycles need to be as efficient as possible. Standard agreements like an NDA cannot bottleneck the sales process because the customer will not wait, especially if a competitor is faster. Don’t let contract management undermine your first mover advantage.
3. 84% of Legal Departments are unable to run reports on their contracts – Without an analyzable contract management system repository, Legal teams are left in the dark. They cannot run reports to identify which stage in the process needs to move quicker to improve the top and bottom line, which is unacceptable considering the hordes of available metrics thanks to big data and ever improving business intelligence. If you can’t find it, you can’t fix it.
Speed. Visibility. Control.
These three flaws are where contract management systems need to be improved in 2015. Companies need to identify a solution which can be their single source of truth, not only for the contract management space, but for their entire sales cycles. Making investments in this Quote-to-Cash process will help increase the top line and increase efficiency, which will translate prodigiously to the bottom line, leaving you and your customers in a happier state.
Download the full 2014 year-end report, Contract Management Flaws that are Submarining your Business, to identify more ways your company will benefit from updating your contract management system.
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