This blog post was originally published in 2017 and has been updated.
In a conversation with Gartner Research Director Nigel Montgomery, Determine President and CEO Patrick Stakenas said that enterprise companies are paying billions of dollars because of gaps around contracts and cross-departmental processes. Contracts are now repositories of important client data and can help improve the experience of doing business with you.
As a large business, your contracts are incredibly important, but they also slow you down significantly. In this age of digital transformation, you cannot afford for any of your crucial processes to slow you down.
To increase the speed and efficiency of your enterprise businesses, avoid these top 5 contract mistakes:
5 Contract Mistakes that Slow Down Enterprise:
1. No strategy surrounding where online legal agreements live
Creating and approving legal agreements within enterprise businesses is multi-faceted. Contract creation must pass many sets of eyes before it is approved and signed. Letting your legal records float around unmonitored is about as smart as leaving your financial records out for unnecessary viewers.
This contract mistake slows down your enterprise because it means when it is time to find agreements, everything is ad hoc and takes too much time. All companies need a safe repository for their legal agreements.
2. Slow contract publishing
Building your contract in multiple places leaves your enterprise disorganized and frustrated. This contract mistake slows down your contract publishing rate and your enterprise business as a whole, significantly.
If your customer is waiting to sign off on this contract and their patience becomes thin, they can easily decide to back out. Quickly presenting them with thorough agreements takes advantage of their desire to do business quickly and catches them in the heat of the moment while they are happy and excited to be doing business with you.
The longer it takes to redline and publish, the longer the contract turnaround time. One key way to get more customers to sign is to have an actual agreement ready to send off for signature.
3. Difficult methods for online contracting
Hyperlinking to terms at the bottom of your page as a means of notifying your customers of their binding customer terms is one step to online contracting, but doesn't come close to doing enough. Customers should actually be notified via clickthrough (or clickwrap) agreement to provide proper acceptance of your terms.
What about closing deals? Finalizing a sales agreement should take no more effort than sending an email prompting parties to review and accept agreement conditions. If it’s difficult, it’s wrong.
4. Poor digital recordkeeping
Enterprise companies should be keeping accurate records of all business agreements. But it is easy to overlook legal details. Even companies that get other things right about contracts tend to ignore the pertinence of tracking agreements.
It is crucial that businesses know who agreed to what version of your contract and when they did so. Ignoring this leaves your business open to risk and slows down your enterprise.
5. Failing to notify customers of provisioning
In order for your contracts to remain enforceable, you must notify customers when there has been a change in terms they already accepted. Failure to inform customers of new terms is failure to nurture your product. SaaS companies unnecessarily put themselves at risk when legal agreements aren’t implemented or managed properly.
Establishing a well-rounded contract management plan early on will rid SaaS companies of these bothersome legal agreement mistakes. By avoiding these execution errors, and staying on top of SaaS trends, your company will no doubt flourish!