In the modern era, no organization or corporation can function without filing legal documentation. It implies that they are unable to neglect contract management in any way. But contrary to popular belief, contract lifecycle management does not end with contract execution. Even after all parties sign the legal agreement, there is much left to do.
If left to its own devices, the post-contract management stage of the lifecycle can cause trouble for all the invested stakeholders. Whereas, when done right, organizations can derive value from executed contracts for favorable outcomes. Having all the contract-related information and documents in one place can certainly help. That is where Contract Management Software integrated with Salesforce comes in. In this blog post, let us take a closer look at utilizing the integrated system to hone the post-contract phase.
As is already known, contract management involves monitoring a contractual agreement throughout its entirety. The contract lifecycle management process mainly consists of three stages: the pre-contract phase, the execution phase, and the post-contract phase.
During the pre-contract phase, a company initiates contact requests. They prepare a draft laying out each party's requirements. It is a vital part of the contracting process because a poor contract can cause the entire project to fail. Salesforce contract management offers contract templates and customer databases for effortless contract authoring.
In the second stage, the parties negotiate the terms and conditions of the contract. Organizations can utilize contract redlining for real-time discussions and keep track of the changes. After they decide upon a final draft, all the parties sign the document for execution. With Salesforce contract management and e-sign applications, companies can get the contract directly to customers for signing.
The final and often overlooked part of the contract lifecycle commences only after contract execution. The post-contract phase consists of contract reviews, audits, compliance, etc. Fortunately, Salesforce contract management provides the necessary tools to manage the last stage effectively. Before we get into that, here is all you need to know about the post-contract phase.
Contracts do not go stagnant after signing; they remain as dynamic entities. Depending on the organization's contract management system, executed contracts can be a blessing or a curse. The post-contract phase mainly deals with reviewing and monitoring legal agreements. It is vital to uphold all of the terms and conditions of the contract per the expectations of stakeholders to ensure contract compliance.
Also, an executed contract is not impervious to change. There is often a need for amendments due to extenuating circumstances. Post-execution phase covers modifications to the legal document when necessary. Some of the other notable aspects of post-contract management include:
For continued partnership, both parties must fulfill the obligations stated in the contractual agreement. To do so, the organization must be fully aware of all the conditions and commitments made in the legal document. The legal team identifies and keeps tabs on obligations during the post-contract phase to ensure compliance.
Apart from financial repercussions, contract performance also affects the productivity and integrity of a company. That is why it is vital to track the success of a legal document to gauge its impact on an organization. Once executed, the legal counsel can judge the progress of the contractual agreement against the expectations using KPIs (Key Performance Indicators).
Organizations often conduct internal audits to assess executed contracts to ensure quality. They help to establish the accuracy and validity of contractual obligations. Hence, it is significant that all legal documents, signed or otherwise, are readily searchable and accessible.
Contract milestones help businesses identify critical dates and tasks related to contract management. Monitoring milestones enables organizations to make timely delivery of payments or services. In the long run, it proves beneficial to the reputation and reliability of a company.
Most executed contracts have strict renewal and expiry dates in place. In such cases, an organization must religiously keep track of renewals, re-negotiations, and expiry to avoid financial losses. It helps companies to retain clients or vendors.
Organizations strive to realize value from executed contracts yet frequently fall short. Managing the contract lifecycle is a hardship for any department. Moreover, the companies do not have suitable systems or tools to enhance the post-contract management process. Here are some of the complications that make the final stage difficult for the legal team:
Post-contract management is an ongoing process, from contract execution to its expiry. When organizations do not have standardized or automated systems for contract management, the final phase can take up a lot of time. It is practically impossible to identify all contractual commitments and duties manually.
Relying upon emails, spreadsheets, or numerous platforms to carry out post-contract management operations is a cause for concern. Because manual processes often lead to miscommunication, human errors, and disjointed workflows.
It might impede the management process when contract managers must browse numerous platforms and documents to track data. Organizations cannot derive value from executed agreements if they cannot ensure timely compliance.
Organizations need an effective and dependable framework to maximize the benefits of the post-contract phase. The integrated system combines CMS and CRM (Customer Relationship Management) capabilities to provide seamless operation. Here are a few of the features you can adopt for effective post-contract management:
The CMS-integrated Salesforce system offers a complete overview of the contract lifecycle. The sales team can stay on top of contractual milestones and processes within the CRM platform. Also, they get extensive access to all the executed contracts to establish compliance and performance.
Having a centralized and accessible location for all contract-related information enables the legal and sales department. They can successfully collaborate to manage the post-contract phase. It also helps to speed up the last stage and thus improves its efficiency. The integrated system empowers salespeople to serve customers better. They can easily access all the customer-related information in one place to take care of queries and complaints.
Keeping track of contractual obligations is the primary function of post-contract management. Fortunately, the Salesforce contract management system makes the task super convenient for organizations. The integrated platform comes with a customizable obligation tracker. It helps both parties to keep a record of contractual obligations.
Obligation trackers also enable the legal and sales team to stay on top of all the commitments and conditions outlined in a legal agreement. Moreover, automated obligation management means significant clauses and stipulations do not fall through the system. Organizations can utilize automated tracking to ensure timely payments, services, deliveries, etc. Thus, companies can mitigate the risk of contract breach and improve contract compliance and performance.
Salesforce contract management offers a centralized source for all contract and customer-related information. Organizations can harness the data to promote contract analysis and reporting. The integrated system elevates the quality and credibility of contract reports.
Active documents, expiring documents, customer databases, and so on can provide actionable insights. The integrated system enables the legal and sales team to aggregate the data for high-level analysis. Businesses can leverage contracts and client intelligence to identify future risks or opportunities. Moreover, Salesforce contract management perpetuates information sharing and collaboration for better returns.
Another significant part of the post-contract phase is renewals and amendments. When contractual agreements reach their end date, either they are fulfilled or renewed. Businesses must keep track of renewals and expiry dates to eliminate financial and legal repercussions. With the CMS-integrated Salesforce system, organizations can set up automated reminders for significant milestones and dates.
Both the sales and legal teams will be able to track the contract progress from either platform. The timely notifications ensure that the company does not miss retaining customers. Moreover, the integrated system makes it easier for organizations to make amendments to executed contracts. Any change to a legal document in one system is automatically reflected in the other system. So, with user permission, both the sales and legal departments can carry out the amendment process. There is no risk of loss of version control or authenticity.
Every stage of the contracting process is crucial to derive the utmost merit from the legal document. Hence, organizations need a contract management system that efficiently handles every aspect of the lifecycle. Salesforce contract management can automate and optimize each of these contract stages.
The integrated system offers advanced solutions to manage the post-contract phase efficiently. From a centralized location, users can access all the contract-related documents to ensure compliance and performance. The organization can get the bargained value by ensuring compliance with the terms and conditions outlined in the contract. Businesses can empower both the sales and legal teams to contribute to the post-contract phase. For companies handling an enormous number of contracts, the CMS-integrated Salesforce system is the best option to obtain better results from post-contract management.
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