Before COVID-19, organisations were undergoing digital transformation, some at varying paces. As we enter into the next normal, digital transformation is no longer a process or future end goal. It is an irrefutable need that will define how organisations will continue to survive in today’s post-Covid era.
As the legal department, your primary role is to protect your business by proactively identifying and mitigating risks. This brings us to the core function of every legal department - managing contracts throughout their lifecycle; creation/drafting, negotiation/ reviewing, approval, finalisation, renewal/ closure.
If contracts aren’t managed efficiently, chances are that your business is at risk of losing money and credibility. In fact, according to IACCM, poor contract management costs businesses an average of 9% of revenues each year1. Meanwhile, KPMG reports that poor contract governance can lead your business to lose up to 40% of a contract’s value2.
The argument of financial and reputational losses caused by poor contract management makes for a compelling case for streamlining contract processes.
But what makes contract lifecycle management indispensable in 2021?
The next normal post-pandemic has made contract management tools vital for business continuity - a trend that we can expect to last for a long time. As legal professionals work remotely more frequently, the demand for tools to ensure contract processes run as smooth as during pre-Covid times will increase.