Interactions with prospects and customers are traditionally regarded as the ‘front line’ of business operations. The sales department dedicates itself to closing deals, and managing complex negotiations to secure contract agreements that benefit both the company and the customer. The trust they build is evidence of their commitment and the promises they will continue to passionately fulfill.
The relationship with the customer begins at the contracting stage, making it crucial to create a strong first impression. Sales teams work hard to assure customers that the products they offer will meet their expectations and that the entire experience will be seamless. However, any issues with contract paperwork can lead to significant frustration, potentially undermining this initial trust. That’s why it's essential for the contract management team to meticulously evaluate every detail, ensuring the contract is accurate and error-free from the start.
After navigating challenging negotiations, the last thing a sales team wants is to find errors in the language of the contract. Such mistakes can undermine their hard work in closing deals and shake confidence in their team’s contract management process. Automated tools that detect and correct errors in contract language help safeguard against inaccuracies, ensuring that every detail is precise and compliant with the agreed-upon terms. This meticulous attention to detail helps steer clear of disputes and upholds the integrity of the contract.
Managing deadlines and obligations throughout the contract lifecycle is equally as important to preventing legal issues. Automated alerts and reminders of upcoming milestones, renewal dates, and critical tasks minimize the risk of oversights and delays and ensure that all contractual obligations are met promptly and efficiently.
If your sales team is facing challenges in the contract management process, it may be due to one of the following common issues:
Miscommunication
The most common problem that arises between the sales team and the contract management team is the lack of communication. When these departments function separately, important information may be lost which might lead to inaccuracy of contracts and reflect the terms they agreed to with the customer. This disconnection can lead to delays in contract approval and lost sales opportunities.
Inefficient Contract Approval Process
Another typical problem that can hinder your contract management process is an inefficient contract approval process. If you have outdated contract management software or rely on manual approval processes, you may experience obstacles that slow down the entire contract lifecycle. These delays can create frustration for both your sales team and clients.
Related Article: Where’s the Weakest Link in Your Contract Management Process Chain?
Poor Collaboration
Sales and contract management teams often have different goals and priorities. While the sales team is focused on closing deals quickly, the contract management team may be more concerned about ensuring compliance and minimizing risk. Poor collaboration between teams can slow down your entire contract management process.
Inefficient Renewal and Obligation Management
Tracking important dates and obligations prevents legal disputes and costly mistakes. Monitoring these metrics manually is difficult and ineffective in ensuring all contract obligations are met and upcoming renewals and expirations aren’t missed.
How to Align Sales Department with Contract Management Processes?
Encouraging Clear Communication
Encouraging Clear Communication between departments makes it easier for teams to understand each other's goals and challenges, close deals faster, and manage contracts more effectively. Regular documentation and keeping open channels of communication help to ensure that everyone is aligned. It also helps to maintain clear protocols on how sensitive information is being shared, especially during contract negotiations.
Related Article: Your Role in the Contract Management Process
Enabling Effective Collaboration
Since sales teams often work under tight deadlines, enabling effective collaboration between teams can significantly improve the contract management process. Real-time collaboration helps to address issues more promptly, preventing bottlenecks and ensuring a smooth flow of contract processes.
Advanced Audit Trails
Maintaining a robust audit trail is important for ensuring compliance and maintaining transparency. For the sales team, advanced audit trails provide a clear view of what changes were made, who they were made by, and when these changes were made. This visibility helps to maintain version control and flag discrepancies through contract review and negotiations.
Implement an Integrated Contract Management System
Implementing an integrated Contract Management System can help you to align and take back control of your contract management processes. Utilizing a secure SharePoint platform with two central dashboards for contract creation and contract management, you will be able to manage every stage of the contract lifecycle. From creation to ongoing renewal, advanced workflows automate each step inside one enterprise contract lifecycle management solution.
Conclusion:
The sales team is deeply passionate about the work they’ve done to reach the contract execution stage. It takes a collaborative effort to make sure the contract is drafted accurately, reviewed carefully, and executed smoothly. After countless hours of negotiations and redlines, executing the agreement is the start of a partnership, allowing a smooth contracting process to set the tone of the relationship with the customer.
However, the work doesn’t end once the deal is signed. Managing obligations outlined in the contract and key milestones with reminders and automated reports further ensure compliance and a reputable relationship. With streamlined contract execution and effecting tracking through robust audit trails, the team not only maintains trust during negotiations but also ensures that the contract’s terms are fulfilled without any issues for both the company and the client.
Originally published by https://www.convergepoint.com/
