ROI on Contract Management Software

| Berkman Solutions | Contract Management

Contracts are often filed and forgetten. Learn how to measure the benefits of contract management software over spreadsheets and folders.

Return on Investment in Contract Management Software

How to measure the true return on investment in contract management software.

Learn how to measure the true return on investment in contract management software. See how to make quick, practical improvements to your business today.

Contract Management Myths

Contract Management Myths

Solely an administrative cost

It is tempting to see contract management as an administrative burden. Spreadsheets are good enough to keep a list of contracts together.

Purely a process problem

Many business people see the legal department as the “business interruption team,” meaning that contracts take a long time. The myth is that improving the legal department’s contract drafting process will accelerate contract production.

Document management

Yes, contracts are reduced to documents in the vast majority of business deals. The myth is that contract management is just about document management. If we know where the documents are, then the contracts are managed.

Contract Management Facts

Contract Management Facts

Improves financial performance

Businesses operate on a network of contracts for revenue, expenses, assets, and liabilities. Careful management improves financial performance. Software designed to expose the financial structure of contracts and to identify risks can help grow the business.

Demands expertise

To extract more value from contracts, requires a thorough understanding of the risks and opportunities embedded in the terms of a contract. Reports that show performance obligations, insurance requirements, and indemnification provisions add more financial value than processing a language change more quickly.

Promotes better risk management

When contracts are managed as data, instead of words, they can provide insight into the business, especially for the entire contract portfolio.

Return on Investment Calculation for Contract Management

Return on Investment calculation

DIRECT FINANCIAL CONSEQUENCES

Benefits

Protect revenue

Prevent revenue contracts from expiring, structure revenue contracts for best revenue recognition.

Expense control

Prevent unexpected auto-renewals of expense contracts.

Costs

Licensing

Fees, users, document storage

Subscription or maintenance

Annual fees, escalations

Services

Third party services, internal service requirements

RISK MANAGEMENT

Benefits

Identify and prevent breach of contract, by either party.

Manage legal policy exceptions, like choice of law and indemnification.

Costs

Unexpected losses

Adverse legal rulings with unknown scope.

Loss of remedies

Lack of data prevents timely use of contractual remedies.

COMPLIANCE REQUIREMENTS

Benefits

Avoid or mitigate regulatory violations with compliance reviews based on external legal requirements.

Costs

Government regulatory reviews.

Third party enforcement

Private enforcement rights.

Return on Investment for Lextree

Return on Investment for Lextree

DIRECT FINANCIAL CONSEQUENCES

Benefits

Protect revenue

Prevent revenue contracts from expiring, structure revenue contracts for best revenue recognition.

Expense control

Prevent unexpected auto-renewals of expense contracts.

Costs

Lextree provides an annual subscription for unlimited users and unlimited contracts.

All services are provided on a fixed bid basis.

RISK MANAGEMENT

Benefits

Identify and prevent breach of contract, by either party.

Manage legal policy exceptions, like choice of law and indemnification.

Costs

Lextree provides insight to the entire contract portfolio for proper risk management.

Track legal provisions by document or contract.

COMPLIANCE REQUIREMENTS

Benefits

Avoid or mitigate regulatory violations with compliance reviews based on external legal requirements.

Costs

Lextree support compliance obligation tracking for any type of regulatory requirement.

Berkman Solutions
Legal technology for business entities, contracts, risk and compliance.

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