Every new year starts off brimming with motivation and new resolutions to change a lot of things for the better. Granted, putting these resolutions into practice usually doesn’t last long. Have you been there, too? But clinging to old habits and failing to set goals won’t get anyone anywhere either. To get straight to the good news: When it comes to contract management, you can leave that comfort zone behind with confidence thanks to intelligent software products that empower you to achieve your New Year’s resolutions quickly and with lasting effect – by making the switch from an analog to a digital approach.
Change old habits easily with digital contract management
In the middle of last century, Maxwell Maltz determined that it takes at least 21 days to develop a habit. Getting rid of them, however, takes an inordinately greater amount of time – if the effort succeeds at all. Why is that? Alongside patience, successful change is the result of a well defined motive, a conscious decision – and the right tools.
Especially in the area of contract management, old habits are the reason many companies have been using analog methods of administration for years, and leaving enormous potential for improvement untapped. Digital tools that replace these time-consuming and error-prone routines have long been available. My seven New Year’s resolutions – achievable immediately and lastingly thanks to modern, cloud-based standard products and the use of artificial intelligence (AI) – will show you why the time is ripe for making the switch. Not only that, they also drive greater efficiency in the contract lifecycle. Read on and discover how my resolutions will work for you, too.
1. I keep all my contracts neatly organized in one place.
Location-based file storage systems, team drives, and paper files in office cabinets in individual departments make handling and keeping track of them extremely difficult. This system, which has evolved over many years, requires a lot of time and poses risks.
Cloud-based contract management software combines all documents and information in one place in an audit-proof manner - the "single source of truth." A smart role and authorization concept, including deputy and succession arrangements, ensures that only authorized individuals have 24/7 access to the data from anywhere. Additional internal and external parties can be quickly and easily integrated. This makes collaboration efficient and secure. Eliminate scattered filing structures and cumbersome communication channels, and enjoy the benefits of the cloud.
2. I negotiate contracts in secure data rooms rather than via email.
Although emails are a practical and fast means of communication, they are not 100 percent secure for auditing purposes. Contracts can get lost or end up in spam or advertising folders. Different versions can also be in circulation. These scenarios cost a lot of time and money.
Smart contract management allows you to create secure, password-protected data rooms in the cloud where you can store all documents for negotiations. All authorized company personnel, as well as external partners, can access the rooms and collaborate on documents simultaneously. Automatic versioning makes every change traceable and ensures that the latest document is always visible. The time travel function allows you to quickly find and restore older versions if necessary. This shows that negotiating contracts via email is outdated.
3. I let AI initially review my contracts instead of spending unnecessary time doing it myself.
Often, you receive comprehensive contracts that require review. After spending hours reviewing all the documents, you realize they contain absolute knockout criteria. Artificial intelligence makes it possible to check contracts at the touch of a button using checklists or specific clauses. This eliminates the need for manual searching and comparison immediately.
This method is ideal for ensuring compliance with internal or regulatory requirements, for example. Another option is to ask the system specific questions about contract content via chat. The AI provides quick answers and summaries in any language, including traceable source references.
4. In the future, I will also approve contracts outside of my office.
Team members in legal departments often spend their days in the office processing piles of files on their desks and checking what feels like hundreds of email attachments. What if time before or between external appointments could be used to address urgent matters?
With a cloud-based application, you can complete assigned process steps in accordance with the highest security standards, regardless of time or location - even from mobile devices such as laptops, tablets, or smartphones. This demonstrates that handling sensitive contract data outside the office is both easy and secure.
5. I only need to take care of my to-do list. The system handles the rest of the process.
Have the relevant department's responsible parties reviewed the documents' content? Have all comments been incorporated into the contract? Once I approve it, who will ensure that all contracting parties sign it?
Those involved in manual processes often have to deal with these and similar questions.
Intelligent software excels with digital review, approval, and release processes that start automatically. Depending on the process type, the appropriate people are automatically involved and receive a notification as soon as a task arises for them. You can view and track the steps already completed in the process at any time. This allows you to focus entirely on your tasks - just leave the rest to the smart tool.
6. I sign contracts digitally instead of on paper.
The negotiations were successful, and the contract is ready to be signed. Often, those responsible still print out the documents, distribute them in analog form with colorful Post-it notes, and then scan them again after they have been signed. This is no longer appropriate in this day and age.
Modern contract management software has an advanced electronic signature system and the option to integrate a qualified electronic signature in accordance with the EU's eIDAS Regulation. This significantly speeds up the process. Once the signing process starts, decision-makers can easily navigate to the signature field without switching systems, and the contract becomes legally valid immediately.
7. I always have all my contract deadlines at my fingertips.
Often, several people - sometimes from different departments and locations - manually record relevant deadlines and dates in extensive lists and calendar entries. They coordinate these entries via email or phone. However, this approach is resource-intensive and prone to errors.
Digital tools use AI to recognize and classify important data, such as contract type, partner, and deadlines. This data is then presented in a structured manner in customizable lists. Another important feature is integrated deadline management with email reminders and push notifications, which is also AI-based. This allows you to not only keep track of your contract portfolio but also ensures that you never miss a deadline again. Switching from analog to digital management reduces manual tasks and eliminates the worry of missing deadlines.
Happy New Year: Implement resolutions quickly and sustainably with digital contract management
Say goodbye to the era of analog contract management. This outdated method relied on paper, telephone, email, common spreadsheet programs, and additional calendar entries. Smart contract management software offers compelling reasons to break with "old" habits and choose an intelligent, standardized product like Fabasoft Contracts. Its immediate usability and AI technologies significantly reduce effort and potential errors and risks while providing competitive advantages. This allows you to achieve your long-term goals - and ensures that your New Year's resolutions won't remain empty promises.
