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Contract Negotiations- 10 Best Strategies to Do it Effectively
Contract negotiation is a crucial aspect of contract management. Contract negotiation involves a lot of coordination; the process poses a logistical challenge to the team for getting contract feedback from a large number of counterparties or stakeholders. On top of that, imagine doing this for multiple contracts. Let's go through what contract negotiation is and how can the business effectively negotiate the contract: What is Contract Negotiation? Contract negotiation is a process whereby two or more parties discuss the terms of the contract before making it official. During the contract negotiation, all the parties involved discuss their roles and responsibilities, the benefits of entering into the contract, and the risks involved. The main objective of contract negotiation is to make all the parties feel comfortable and informed of the details of the contract. Strategies for Effective Contract Negotiation 1. Start With Term Sheet A term sheet is a nonbinding agreement that outlines the basic terms and conditions under which a contract will be made. It can be a practical starting point when building and later negotiating the contract. The term sheet lays the groundwork for ensuring that the parties involved in a business transaction agree on major aspects. If all the parties agree to the terms and conditions outlined in the term sheet, the negotiation process gets less stressful. 2. Negotiate the Contract in Bits and Pieces People typically negotiate contracts as a whole. However, a lengthy contract can lead to confusion, frustration, and disagreement among different parties. So, it is best recommended to break the contract into bits and pieces while negotiating. It helps parties agree to the contract faster, eventually motivating them to continue. 3. Know Your Priorities Having clear priorities before entering the negotiation process helps guide discussion with the counterparty. It allows both parties to start with the most important factors and then move on to less important ones. If the parties know their priorities, it is easier for them to compromise on less important aspects of the contract. 4. Prepare Alternatives Consider alternative options of prioritized terms and conditions that one can settle for. And mention it only if the counterparty is challenging the already presented terms. 5. Understand the Counterparty's Intentions Research the counterparty's interests and goals before starting the process of negotiation. Evaluating their business motive and needs may help to decide your next move in the negotiations in a way that addresses both parties' interests. 6. Separate the People from the Contract Business negotiation is the same as business. In both cases, keeping personal feelings aside is the best thing to do. One of the parties can agree to specific items in the contract to make the other party happy. Nonetheless, this could cause conflict in the future if compromises are made on items that not all parties agree upon. 7. Be Open to Communication Communication is crucial in any business relationship, especially when a contract is about to be signed between two or more parties. A contract between two parties is based on trust, so it's essential to ensure that all parties continue to communicate their concerns. 8. Don't Rush the Process When negotiating any contract, it is best not to rush the process. Research and collect the required documents before the negotiation meetings. Be careful before making any decisions because one wrong decision can lead to problems. 9. Keep the Goal of the Contract in Mind Don't forget what the objective of this contract is. When you enter a contract negotiation, be clear about your goals and how other risks and rewards rank after your initial needs are met. 10. End on a Positive Note Show appreciation for the other party and what they contribute. Set the tone for a negotiation process that will best serve both parties interests. Find opportunities to say, "I agree," "you are right on your part." These minor points help set a collaborative tone. The negotiation process can help the business produce better outcomes, but it cannot fix contract inefficiencies. You will need InkPaper, a contract workflow management platform, to have an efficient and robust contract execution. From drafting, collaboration, negotiation, and e-signatures, to secure storage, InkPaper enables teams to boost productivity and focus on business growth. READY TO GET STARTED?
How to Choose the Right Contract Management Solution for You!
As technology evolves, finding the right contract management solution to reduce operational costs while increasing productivity is crucial for the success of an organization. But there are plenty of factors to consider when selecting the right contract management solution. You have first to consider your business's needs and plans. Use these following points to determine which contract management solution is best for you! What Constitutes a Good Contract Management Solution? 1. A Searchable, Central Contract Repository Keeping track of a paper-based contract is time-consuming. Additionally, misfiled and lost contracts remain a significant drawback for businesses still working on paper. A digital solution makes it convenient to find, store and organize the data and eliminates the stress of document storage. Virtual contract repositories can organize documents by metadata like tags, date signed, date generated, etc. Thus, removing the manual uncertainty from critical administrative procedures. Check out the benefits of the centralized repository in detail to make the right choice for your business. 2. Standard Contract Templates Standard templates in a contract management solution make the contracts accurate and standardized. A contract template simplifies the process by providing pre-requisites: start date, end date, payment details, etc. This results in fewer human errors and eliminates the need to skim through old contracts. 3. Real-time Collaboration Every new contract goes through an extensive review process. Most edits are done via email, virtual meetings, phone calls, and shared drives. This can result in multiple versions of a single contract leading to confusion. Using a contract management solution with real-time document editing and review makes the process less stressful and much easier to compare two versions of a contract. 4. E-Signature A contract management platform that integrates e-signature streamlines the lengthy process. It allows multiple signatories to sign the contract from anywhere in the world. Additionally, it saves the employees valuable time by eliminating the need to send contracts and wait for their response. 5. Contract Analytics Managing risk plays an essential part in every contract lifecycle. In the absence of risk management tools, identifying risky terms in existing contracts is quite difficult. And hiring a separate legal team or purchasing add-on tools is expensive. An effective contract management solution calculates the risk during negotiations and helps your business make smarter decisions. Things to Keep in Mind While Selecting a Contract Management Solution: 1. End-user Evaluation Before you begin your search for a contact management system, you need to determine your end-users’ requirements. The key step is to identify and evaluate the right system to satisfy your business needs. For example, your business may want a software system to facilitate data entry and provide audit trails. Then list down your criteria that have input from end-users. 2. Technical Compatibility Before committing to it, make sure the contract management solution you select is compatible with existing legacy systems. 'Integration hacks' blow your budget and increase vendor lock-in. Therefore, designate a person who knows about technicalities and develop a clear technical evaluation framework. 3. Information Distribution The distribution of information is one of the main criteria considered when choosing a contract management solution. Your selected contract management solution should reflect how your company operates. In general, companies want systems that are accessible to all staff members. At the same time, the system should allow for multiple access levels. 4. Security A highly functioning contract management solution has a secure process for delivering and storing documentation. Select solutions that ensure data protection, mainly when accessed by or shared with other parties. 5. Support and Training Lastly, never pick a platform that doesn't offer adequate training or support to its users. Many companies will make multiple promises before you purchase the software, but it's up to you to evaluate and make the right choice. Set up meetings with potential vendors so that you can compare and differentiate. And make sure you include terms for support and training in your service agreement that you find acceptable. How Can InkPaper Help You? Lengthy and stressful contract workflows have various consequences on your business. Hence it is important to choose an efficient contact management solution that helps your business grow faster. With InkPaper, you can draft a contract, collaborate in real-time, negotiate, optimize standardized templates, and exchange e-signatures with secure blockchain technology. By simplifying the contract lifecycle, you can be more productive and focus on business growth.
7 Key Things To Not Miss Out During a Contract Review
Contracts play an integral role in running a business. It establishes a strong and honest relationship between the parties and also protects both parties from legal risks. Just as how a well-written contract marks the start of a fruitful relationship, a poorly-written one can do more harm than good. Sometimes, disputes are unavoidable and a poor contract will only contribute to existing issues. You can prevent such situations with contract reviews. What is Contract Review? Contract review is the process of a thorough examination of legal contracts by which you can analyze and understand the clauses, terms, and conditions before agreeing to the contract. Contract review highlights unclear or outdated provisions and helps you identify areas for possible improvement. In addition, it streamlines the process of detecting risks and looks for loopholes to make sure you are protected once you sign the contract. Contract reviews are also essential after you initially sign the contract, leading upto important contract events such as re-negotiations, opt-out windows, renewals, etc. To conclude, contract reviews generally is your last chance to identify and request needed changes before you are locked into a legal agreement. Hence, reviewing contracts requires diligence and keen attention to detail. It is important to carefully read out the terms, clauses, and obligations before signing the contract. Let’s look at the 8 things to not miss out on while reviewing contracts. What Should You Look For When Reviewing a Contract? 1. Make Sure the Contract is Easily Readable Read the contract thoroughly to ensure that there is no misinformation that you do not agree with. In addition, the legal language in contracts may contain some intricated words that are difficult to understand, which could lead to confusion. To prevent this you should: 1. Take your time reading the contract word by word. 2. Make a note of difficult-to-understand terminologies. 3. Discuss the issues with external parties before signing. 2. Ensure No Blank Spaces & Check Correct Punctuations Grammatical errors and black spaces have a significant effect on interpreting the meaning of the final legal draft. Let’s not forget the case of Portland-based company ‘Oakhurst Dairy’ that owed $10 million to 75 milk-truck drivers in the US state of Maine, because of a missing comma in a legal clause. A minor blunder like extra space or a missing full stop can be interpreted as an incomplete contract that poses legal threats to your business. Whether the contract is drafted manually or with the help of software, make sure to recheck the black spaces in the contract and look out for punctuation errors. 3. Verify The Significance of Important Dates Often, the execution date of a contract occurs before the effective date. In such cases, the date at which the contract is signed is different from the date at which it comes into effect. That means a contract isn’t considered legal until all the parties sign it. When reviewing a contract, pay utmost attention to reading and understanding the significance of all the dates in the document. It helps you understand when your role in the contract comes into effect, avoiding any confusion afterward. 4. Check Termination & Renewal Terms Always confirm that you completely understand and agree upon the contract’s termination and renewal terms before signing a contract. While reviewing the contract you should check things like automatic renewal language and opt-out windows so you know how and when you can cancel the contract and what are the consequences of not notifying the stakeholders by a certain date. Reviewing renewals and termination terms also gives you a chance to plan ahead about the important dates and deadlines. Additionally, it is advisable to set reminders so you don’t miss opportunities to renegotiate or cancel the agreements within the stated clauses. 5. Understand The Consequences of a Breach of Contract A smart way to reduce your compensation amount if a contract is violated is by discussing the consequence before you sign the final contract. In some cases, businesses pull each other into court due to an issue that could be easily avoided by clearing out the consequences. It saves you valuable legal time by preventing a rift with external parties. 6. Discuss & Record The Rights and Responsibilities Make a Bussiness Pact: Never rely on oral understanding. Verbal agreements draw unwanted risk to your business. So, decide and record who is liable for what if something does not go according to the contract. In addition, to avoid confusion and disagreements, ensure you know what role you and the external parties are playing over the course of the contract. Being aware of all your rights and obligations before signing the contract minimizes ambiguity later on. 7. Review the Profit/Loss Sharing Percentage The profit & loss ratio is the percentage decided by all the parties in order to distribute profits as well as divide any losses. Once the contract gets legally bound you are liable to all profit and losses as mentioned in the contract. So, revise the percentage proportion in which the profit/losses will be split between the parties to avoid any pitfalls. These are the 7 key things to not miss out while reviewing contracts. Learn more on how you can successfully review and manage contracts here: Why is it important to review contracts and who should do it. About InkPaper InkPaper is a contract workflow and e-signature platform that enables you to have an efficient contract management system. From authoring the contract to the execution and storing the contract securely on the cloud, InkPaper helps you manage the workflow efficiently. 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4 Key Benefits of A Centralized & Digital Contract Repository for Businesses
Contracts are the groundlaying structure of every legal relationship. Businesses need to manage thousands of contracts such as partnership agreements, non-disclosure agreements, property and equipment leases, bills of sales, employment agreements, etc. Simultaneously managing multiple contracts gets extremely difficult. Thus, an effective contract management process is crucial, it holds the power to make or break your entire business. Here are some of the challenges of poor contract management! ● Difficulty in locating contracts. ● Lack of visibility. ● Missed renewal dates. ● Wastage of valuable time. ● Uncertain business outcomes. According to IACCM’s research, on average, an enterprise loses around 9.2% of annual revenue due to weak contract management. The solution for better management of contracts is a centralized and digital contract repository. Because it not only digitalizes all the contracts but also makes them accessible centrally to all the teams involved. Here are the 4 benefits of a Centralized & Digital Contract Repository: 1. Easy Access to all the Contracts A centralized and digitalized contract repository enables easy searches within a database giving quick access to all the contracts in a single place. It allows the enterprises to know the recent status of the contract, track different contract versions and keep the stakeholders in the loop for effective negotiations. Furthermore, having all the contracts at one-click access allows businesses to perform accurate audit trails for compliance purposes. 2. Version Control A digital and centralized contract repository provides a way for businesses to keep track of multiple contract versions in an efficient manner. This prevents the team from working on an outdated version of the document. Teams can easily track, compare and make changes to various versions of the contracts and finalize one to send it to the stakeholders. Having the latest version of the contract allows the business to manage amendments and addenda easily. 3. Streamlines Contract Approvals A centralized and digitalized contract repository simplifies and accelerates the creation, reviews, and negotiation process. An effective cloud-based contract management platform makes collaboration effortless through multiple features of highlighting and redlining the errors in the contract. Businesses thus don't have to wait for months or go back and forth for all the parties to agree upon the final contract. Contract workflow platforms with a central repository enables stakeholders to approve a contract from anywhere, anytime, with an internet-enabled device. 4. Cloud-based security The digital and centralized contract repository ensures the confidentiality of crucial contract data through cloud-based encryption. It provides role-based access controls to restrict unauthorized access to sensitive information. Teams can define who has the authority to view, edit, or comment on the contracts. In addition, business gets an assurance that their data won't be leaked or hacked, as the data is not sent through email, shared drives or spreadsheet-based approach. Wrapping up: A digitalized and centralized contract workflow platform directly saves enterprises time which they can invest in high-value work. Effective implementation of digitalized and centralized repository also offers the business good ROI and prevents them from financial loss. About InkPaper InkPaper is a contract workflow and e-signature platform that enables you to have an efficient contract management system. From authoring the contract to the execution and storing the contract securely on the cloud, InkPaper helps you manage the workflow efficiently. Get started with InkPaper today!
Eight Ways to Mitigate Risks with Contract Management Software
Contracts are prone to risks, and as your business grows, you are faced with many contracts and the associated risks. However, one can prevent potential pitfalls by implementing a contract management platform. Here are 8 ways to mitigate risks with contract management software: 1. Use Standard Template Repository A common reason for contractual risk is noncompliance, generated by incorrect language usage in the contracts. By creating a standard template repository, Contract Management Software helps you store all the key clauses and latest templates in one single platform. The standard templates help legal and non-legal teams self-serve contracts, ensuring they use correct language pre-approved by general counsels. It helps to mitigate the risks of inconsistent language in the contract. A contract management software also helps you add the cmpany's business rules in the templates under some circumstances, like adding a data protection clause for a specific contract. 2. Track Contract Versions Executing a contract is a collaborative process. Multiple teams collaborate to review, negotiate, edit, and make changes in the contract. Hence, it is vital to track each change and contract version to avoid missing important contract data. A contract management software helps users track changes  and compare two different versions of the same contract on a single platform. It enables you to avoid duplicity, spot inefficiencies, and retrieve essential data back into the contract. 3. Optimize Role-Based Access Control A common concern with contracts is that they will be misappropriated, which can occur internally or by external parties and competitors. You can prevent it by giving each team member role-based internal and external access. Role-based access helps you mitigate the security risk of having confidential and proprietary information leak from your organization. You can decide who can edit, view, or comment on the contract using contract management software. It ensures that only necessary employees can read or write certain contracts. 4. Encrypt Contract Data Another way to protect your contract from unauthorized access is to encrypt all the information. Contract management software encrypts information at rest and in transit using the latest encryption standards. Here data at rest refers to any data stored within the contract management software. Data in transit is data in motion sent between external parties and the contract management system. 5. Automate Contract Workflows Automating contract workflows help streamline the contract lifecycle and boost the legal team's productivity. Contract management software mitigates contractual risks associated with missed deadlines and approvals. It also helps in contract audits and analysing a contract's performance. With contract automation, even the non-legal teams such as sales reps or HR can self-serve the contracts. 5. Centralize Contract Storage A cloud-based contract management platform provides a virtual repository for easy and secure accessibility of contracts. Team members can easily collaborate, edit, review, approve, and store contracts securely and centrally in the contract management platform providing complete transparency into the contract lifecycle. The centralized contract storage helps you to access a particular contract quickly when required. It hence becomes easy to track and monitor the status and performance of each contract. 6. Send Alerts and Notifications Missing contract deadlines, obligations, and renewals can cause financial losses to your organization. A contract management platform can easily prevent these. By setting automated alerts, tasks, and calendar reminders linked to the contract data, you can stay on top of critical contract milestones. The alerts and notifications also help fast-track the contract approvals. You can easily send an alert to the signatories reminding them to sign the contract as feasible. Additionally, automated alerts help plan future audit trials. 7. Secure Approvals Securing approvals via E-signatures gets the contracts signed faster. Also, e-signatures safeguard the confidentiality of the signature and store it over the blockchain. It records details about who, when, and where a contract is signed to ensure authentication and help with audit trials. They prohibit the forgery of contract approvals and the possibility of misplacing a hard copy of a contract. Furthermore, it enhances the signatories' experience by enabling them to sign the document anytime and anywhere at their convenience. Wrapping up: Good contract management practices help mitigate risks protecting your business from getting into serious legal trouble. Contract workflow management platforms like InkPaper streamline the entire contract lifecycle, minimize the risks, and boost productivity. With InkPaper's contract workflow management platform, you can manage multiple contracts easily and do more work in less time. Ready to Get Started?
Contract Tracking: How to Track Your Contracts Effectively with a Contract Workflow Platform
Businesses run on contracts, as your business grows, so does the volume of contracts. It is more difficult to manage and monitor hundreds and thousands of complex contracts when they are dispersed across multiple locations. Especially when multiple teams are involved like the contract managers, legal counsels, procurement managers, and sales reps. Stay on top of your business contracts through effective contract tracking. What is Contract Tracking? Contract tracking is how teams can easily locate and monitor where a contract is within the contract lifecycle. Contract tracking helps you stay organized and also increases your business's productivity. By knowing the status of each of your contracts, you can streamline the approval process and close more deals faster. Why is Contract Tracking Important? Businesses usually store contracts over shared drives, track the progress through spreadsheets and use emails to manage negotiations and renewals. As contracts are dispersed over multiple locations, the biggest challenge is visibility. When a contract is first drafted by a legal team or a sales rep, it is created with a particular outcome - either a closed deal, employee onboarding, or an agreed partnership. But with no visibility into the process, it gets difficult to know the progress delaying the outcome. Without contract tracking, it is difficult to know contracts progress, leading to various inefficiencies. Consequences of Poor Contract Tracking Processes: 1. Delays in the Sales Cycle: Sales deals are guarded by contract agreements, and a successful sales cycle depends upon the execution of contracts. Without proper contract tracking, various teams involved in the contractual processes may not know who is currently working on it. This leads to avoidable delays in the sales cycle, affecting a company's revenue. 2. Conflicts Between Teams: The lack of effective communication and visibility in contract tracking processes increases the chances of errors, such as transferring the wrong file or a wrong update. This can cause potential conflicts between the legal and the business teams. 3. Contractual Risks: By failing to monitor contracts effectively during contract reviews and negotiations, non-standard terms could slip through into the contract, resulting in significant risk for the business. 4. Loss of Contracts: If the contracts are not monitored post-execution, it may get difficult to locate them. Without a proper database, companies can struggle to manage contract renewals, risks, and revenue. An effective contract tracking process gives you complete transparency into the contract lifecycle. It helps you identify if the contract is stuck and what needs to be done to move it forward. Tips for Effective Contract Tracking Here are some valuable tips on how you can track and monitor your contracts well: 1. Identify the Location of Your Contracts Make should know where all your contracts are located. Without knowing the location of your contracts, accessing, and tracking them is difficult. Establish a system and create a repository so you can quickly find all the agreements when required. 2. Document Important Data of the Contracts Every time a new contract is executed, consider documenting every piece of essential data that needs to be monitored. Collaborate with legal teams or contract owners to determine any special considerations to track apart from renewal dates and deadlines. 3. Keep the Stakeholders in the Communication Loop Contracts are a collaborative process. You need to ensure all the stakeholders are well informed about the status of the contracts. Keeping them informed of the approaching deadlines and deliverables will help you plan ahead of time for contract renewals. It is equally important to inform the stakeholders of the contract's performance. Whether it is performing as expected, if not, you can collaborate and review the contract and make any changes if required. 4. Streamline it With a Contract Workflow Platform Contract tracking and monitoring become much easy to streamline with the help of a contract workflow management platform. Here are key features of a contract workflow platform that helps in simplifying contract tracking: ● Centralized Database: A contract workflow platform ensures easy and secure accessibility of contracts. With centralized storage, you can easily access a particular contract anytime from anywhere with an internet-enabled device. A secure central database is also helpful for future audit trials, contract renewal reminders, and monitoring the performance of old contracts. ● Real-time Collaboration: With real-time collaboration, you can review, edit, mention, share and approve contracts all in a single space seamlessly. A contract workflow platform tracks all the changes made so you can compare two versions of the same contract effortlessly. It saves valuable time and safeguards your business from contractual risks. ● Role-based Access: A contract workflow platform gives you complete control over who can access the contract. You decide who can only view the contract, who can edit, and who can approve. The role-based access ensures visibility and accountability for each team member. ● Notifications and Alerts: Contract workflow platforms allow you to notify and send alerts to various signatories, reminding them to review or approve a contract. It improves transparency and makes contract tracking easier for all the parties involved. ● Seamless Integrations: Contract workflow platforms enable you to integrate with external systems to share and track contracts easily. Setting up such integrations helps make contract tracking visible for everyone apart from those involved in the contracting process. Ready to Get Started? A contract workflow platform like InkPaper streamlines contract tracking for your business. InkPaper accelerates the entire contract lifecycle for you to close more deals faster.
How to Use InkPaper Without Signing in To InkPaper?
Executing contracts is a hassle and has always been that way. The rapid adoption of technology has made it easier for everyone to come to a legal agreement when it comes to executing contracts. However, organizations are still juggling multiple platforms, tools, and systems to execute legal contracts efficiently. The right tools make contract workflow management easier if you know how to use them. InkPaper is a contract workflow management system that offers an integrated browser extension. InkPaper streamlines the entire contract process and helps you move contracts quickly from one stage to the next.  Rather than the bottlenecks inherent in spreadsheets, limited point solutions, homegrown systems, InkPaper lets you configure approval workflows on the web- both parallel and serial so that the process stays in motion. Dashboards can show you where contracts are in the lifecycle at a single glance, and you can directly notify the responsible parties about the next step. Multiple functions such as reviews, edits, tracking, signatures, trigger emails, and alerts are all built into an integrated web browser. You can do it all on the web without switching to different applications, from creating a contract to getting approval. Top 3 Obstacles to your Contract Management Process and How InkPaper Solves Them 1.) Collaboration: Often, interdepartmental communication isn't always on point. The endless back and forth of emails, shared drives, virtual meetings, and multiple sign-ups are time-consuming and cause fatigue. Even a small team can have trouble keeping everyone on board, leading to dispersed contracts over multiple locations without proper tracking. How InkPaper Solves This: InkPaper here helps in multiple ways. From providing real-time collaboration to offering a centralized, searchable contract repository where you can find and look through all of your agreements in one single place. You can access this directly from the web with a one-time sign-in. After uploading the contract and giving access control to the responsible teams, you have all the contracts in one searchable place. Hence, no more sifting through emails, signing in and out of various systems, or opening 20 different files on the desktop to find a single contract. 2. Risk management: A contract is only as good as the data used to create it. When you rely on different systems for a different set of information, i.e., creating a contract in one system, using a different one for reviews and negotiations, and another for approval, this opens your company to all kinds of risks. As a result, you encounter possibilities for human errors, inconsistent language, incorrect terms, and clauses. It is equally time-consuming and error-prone to ask stakeholders to sign in to 3 different systems or multiple different tabs to negotiate a contract. It further leads to missed deadlines and renewals, adding to the risk. How InkPaper Solves This: InkPaper's cloud-based platform shares a single source of verified and consistent metadata across your entire enterprise. InkPaper captures all the data for you throughout the request, authoring, negotiations, and approval to focus on increasing business opportunities and to make you less worried about making high-risk legal mistakes. InkPaper also integrates with Gmail and Outlook, thus giving you a seamless experience of sharing contracts directly from the platform to Gmail or Outlook. Whenever stakeholders reply to the thread, you get the information directly on the InkPaper platform. It reduces the overall risk related to missed deadlines and renewals. 3. Signing: Electronic signatures are great if you have enough options, and your client uses the same platform (multiple clients using the same platform). Otherwise, downloading an integration for every new contract with a new client is a hassle. How InkPaper solves this: With InkPaper, you get all the electronic signatures you need right inside the system itself. No need to scramble extra signature slots when agreements change or no need to integrate new systems. It is painful for signatories to make new accounts to execute agreements. That’s why once you’ve created an account for third-party signatories, they can sign directly from the email they receive from InkPaper . You no longer have to worry about new logins or deal with password problems, just a click to get to the right place.
How Contract Templates Help Save You Time and Money
Time is money! Especially when it comes to negotiating and executing a contract. Across industries, fragmented contracts pose a major challenge for professionals who create, review, and manage contracts reports. However, once you streamline the first step of the contract lifecycle, the following stages can be fast-tracked quickly. You can significantly realize the actual value of contracts by utilizing standardized contract templates in a contract lifecycle management system. The use of contract templates helps save time in drafting, negotiating, approving, and managing contracts. It improves the performance of both the internal teams and external parties. Contract templates provide numerous benefits, including removing the need to create a contract from scratch. Rather than authoring a completely new contract, contract templates already have all the pre-requisites like name, start date, end date, cost, specific clauses, etc. Contract templates also ensure that the legal language remains consistent throughout the contract management system. Standard Contract Templates Vs. Custom-Written Contracts The alternative to using a standard contract template is asking a legal team or a counsel to draft a custom-written contract which isn't ideal for several reasons. The cost of a custom-written contract is much higher than that of a standard template. It requires you to pay expensive legal fees on an hourly basis. Whereas standard contract templates are readily available on a contract management system and, once drafted, can be used repeatedly without any additional costs. Standard contract templates also save money by saving time. External parties are more likely to know what they are getting with a standard template because they've encountered it multiple times. On the flip side, a custom-written contract is something new and unfamiliar. So, the parties take extra time to investigate its provisions to make sure it is fair. Finally, standard contract templates are preferable to custom-written contracts because they are less likely to be biased. Created by neutral third parties, standard contract templates are designed to be fair and agreeable to all parties. Their hallmark is their widespread acceptability. Custom-written contracts are written by either party interested in contract negotiation, putting the other party at a disadvantage. Which then requires a costly contract review to ensure the agreement is fair. Standard contract templates also have the following key benefits other than saving time and money and being fair. 6 Key Benefits of Contract Templates: 1. Improve Drafting Experience Drafting contracts from scratch every single time is overwhelming. You can quickly draft the contract with legal-approved standard contract templates by adding crucial values, e.g., the other party's name, start date, end date, payment terms, jurisdiction, etc. It also takes multiple emails before a contract request is assigned to legal. By centrally storing contract templates in the contract workflow management platform, every employee responsible can quickly draft contracts in standardized language and format. Non-legal teams such as sales Reps, HR, and IT personnel can even self-serve contracts using the templates. 2. Streamline Contract Negotiation Contract negotiations typically include long hours of talking to lawyers and stakeholders and researching past agreements. Standard contract templates help streamline the contract negotiation process so that parties can focus on deliverables instead of researching various documents. With a contract workflow management platform, you can easily see the previous golden contracts for similar use cases and use them as a base to renegotiate with vendors and get better deals plus rewards. 3. Fast-track Approval Process Contract approvals often take the longest time in the contract lifecycle, as the contract approver must read through every line in the contract, which can be a daunting task. However, when a contract is authored using a pre-approved standard template, the approver can focus on reviewing key values. It saves valuable time for organizations to be utilized for other high-value tasks. 4. Increase Compliance The legal-approved contract template creation process considers all the business risks and includes unique business-specific clauses to mitigate them. The legal teams can keep track of most negotiated clauses and standardized clauses to analyze the effectiveness of their language. Contract templates improve compliance. With different languages across different contracts, you may have different sets of payment terms, obligations, and clauses for similar vendors, employees, and customers. The standard contract templates enforce you to be compliant with the same legal language across all similar contracts. 5. Update Clauses Faster A legal team needs to ensure that all the latest updates are continuously incorporated into the contracts. To update one clause to your business contracts, you need to search for every contract containing a similar clause. In addition to being very difficult, it leaves you open to risk. Instead of chasing down individual contracts, standard contract templates enables you to quickly and efficiently make adjustments centrally. By simply updating the clause in your template, you can ensure that every contract going forward is compliant with new clauses. 6. Duplicate Knowledge In addition to making the contract drafting process seamless by optimizing your pre-approved templates, a contract workflow platform also allows you to make others' work easy. Using a contract workflow management platform, you can find a repository of pre-defined clauses, legal-approved unique contracts that you may use only once or twice a year. You can customize it according to your requirement and store it for further use with a few tweaks. On a contract workflow platform like InkPaper, you can upload and store multiple contract templates centrally; and access them with just a click. In a complex and fast-paced business environment, as a business, you need to make it easy and quick to create contracts. Standard contract templates assure business stakeholders of the accuracy of the language, enabling them to focus more on strategic business terms than on standard legal clauses. InkPaper, a contract workflow management system, manage contract templates in a searchable central repository, making it easy to access and standardize legal language across the organization. Ready to Get Started?
Power of Contract Automation and Why you Should Do it
As technology advances rapidly, many industries use automation to streamline their work processes. Contract lifecycle management is one such work process that needs great attention to detail, patience, and discipline, taking a lot of time and causing inefficiencies if done manually. That’s why businesses and legal professionals turn to contract automation to accelerate contract reviews, negotiations, approvals, and executions. It doesn’t matter if you are dealing with fewer contracts or more. Contract automation saves time, reduces risks, and increases revenue. The International Association for Contract & Commercial Management (IACCM) shares that contract automation can improve contract function and process efficiency, outcomes, and visibility. What is Contract Automation? Contract automation is creating, reviewing, managing, and storing contracts digitally to accelerate the contract processes. Legal and even non-legal professionals such as sales reps can self-serve business contracts with contract automation platforms. Since contracts are crucial for every company, a platform that can simplify and secure the contract lifecycle is beneficial. Why Should you Automate Contracts? Contracts are the lifeblood of every organization. It involves participation from multiple teams from sales, HR, finance, accounts, legal, and IT to external vendors. Even small businesses and startups must deal with numerous contacts daily, such as NDA’s, employment contracts, partnership agreements, licensing agreements, etc. The involvement of several teams requires smooth collaboration. Manual contract management requires a lot of back and forth from one team to another, which takes up a lot of time. Additionally, human errors increase financial and reputational risks. Even poor storage of manual contracts can lead to infringement. All-in-all, World Commerce & Contracting estimates that inefficient contract processes cause businesses to lose 9.2% in revenue. According to Aberdeen Group, contract automation can reduce the sales cycle by 24%. So by implementing a contract automation platform, you can do more work in less time and focus on growing your business in 2022. Here are some key benefits of contract automation: Benefits of Contract Automation 1. Rapid Revenue Growth Manual contract processes lead to delays in the sales cycle, leading to delayed revenue. Businesses can save time, fast-track contract processing from weeks to days, and generate revenue rapidly by automating contract workflows digitally. Complex contracts can cause long delays and even lead to the abandonment of deals because of inefficiencies. A contract automation platform makes it easier and faster to initiate contracts, collaborate with multiple parties, negotiate, and agree on terms, and execute contracts. Contract automation reduces the workload on legal teams, and sales teams can concentrate more on generating revenue. 2. Better Compliance According to Globalscape’s survey of ‘True cost of Compliance”, the average annual cost of compliance was around $5.5 million. In contrast, the average cost of non-compliance was almost three times higher, at $14.8 million. Companies that fall out of compliance risk experiencing delays, fines, cancellations, and reputational damage. As a legally binding agreement, contracts must comply with all the regulatory requirements and new policies and changes that apply at the time of contract renewals. Contract automation helps create contracts that include all the standard clauses and allows tailoring contract templates to specific regulations. With a contract automation platform, you can save expensive legal time and prevent compliance mistakes. 3. Enhanced Security Businesses consult and collaborate with various parties, from employees and staff working remotely to external vendors, leading to data leaks and breaches. By aggregating contracts in a centralized repository, you can improve your organization’s sensitive information. Automated contract workflow platforms securely store all your contracts in the cloud. You can also limit who has access to the contract, editing, and sharing rights to conduct your business without any fear of data leakage. 4. Complete Transparency A common problem with manual contract management is finding the misplaced version of the contract. Contracts are usually dispersed over multiple emails, collaboration platforms, office space, and hard drives. Automated contract workflow platforms provide complete visibility into the process and save all the versions of the same contract in the cloud. You can track who last edited the contracts, what changes were made, and who all approved the changes. With an automated contract workflow platform, you can easily take control of the contract lifecycle without rummaging through various files, applications, and different teams. 5. Improved Customer Service With almost everything being digitized globally, nobody wants to manually go over the contract, then print it, sign it, scan it, and email it back. Also, going through a long list of emails trying to find the final version of the contract is cumbersome and adds to a negative customer experience. With a contract automation platform, you can improve your customer service. Your customers get complete transparency towards the contract processes and can easily collaborate, negotiate, and execute contracts in a single space. A Salesforce report shows that 80% of customers place the same value on the experience as they do on products and services. A positive customer experience is more likely to coincide with future purchase considerations. Hence, positive customer service will pay huge dividends during renewals and up-selling. Takeaway Contract automation helps organizations automate their processes, streamline complicated workflows, and boost productivity. It benefits both the legal and non-legal teams greatly. Small startups and organizations can self-serve contracts with contract automation so that legal teams can do more high-value work. Find out how you can automate contract workflows with InkPaper here: https://www.inkpaper.ai/post/learn-how-a-contract-workflow-platform-can-benefit-your-business Start Automating Contract Processes with InkPaper
15 valuable tips on managing distributed legal teams
Several law firms and large corporations have legal teams that are distributed across geographies and different time zones. With the pandemic, it has become even more prevalent. Though technology has made it easier to communicate with multiple teams remotely, it might get challenging sometimes when team members are not physically on the same site. Several things are to be considered when managing distributed legal teams such as members’ morale, difficulties in the processes, missed opportunities, lack of team collaboration, etc. It is the manager and the leadership’s duty to ensure the team members are comfortable and the work processes are running smoothly. Julie Wilson, the founder of the Institute for Future Learning and instructor at Harvard University explains how managers can handle remote working teams well. She says, “Managing a virtual team requires managers to double down on the fundamentals of good management, including establishing clear goals, running great meetings, communicating clearly, and leveraging team members’ individual and collective strengths”. In order to create and manage a robust work culture, we have compiled a list of 15 valuable tips to manage distributed legal teams. 15 Tips to manage distributed legal teams 1.) Providing support to the legal teams Like other teams, legal teams have professionals who have a varied set of skills and expertise. As much as the legal teams want to work together effectively and to the best of their ability, it is important to support them in doing so. Managers can support their team by giving them the right access to the information, new tools and guiding them whenever needed. At the time of crisis, it is important to help the team handle it and clear away any obstacles if they arise. With clear communication, complete transparency and clarity legal team members can feel secure and confident. 2.) Lead with integrity and build trust It is essential to lead with integrity when a difficulty or dispute arises. Team members feel confident when their leaders take action during difficult situations and reciprocate. It is important to listen to your team’s concerns and act against any red flags and risks they foresee. Even if the legal team is distributed globally, strong leadership helps build a trusting work culture. 3.) Use video conferencing to build relationships With multiple organizations opting for hybrid work culture, it is easy for remote teams to feel disconnected or lonely from the rest of the team. Instead of collaborating with text-only tools, a video conferencing tool helps in making meaningful and effective face-to-face interactions. Video conferencing helps the leader understand their remote teams better by being able to observe non-verbal cues and react appropriately. Similarly, the remote team members identify with each other's emotions better with video conferencing and hence, share a stronger bond. 4.) On-boarding Remote Team Together Generally, team members feel nervous during the onboarding session. With an effective onboarding process, new hires will accommodate the job faster and better. By introducing everyone together and providing opportunities to them to know each other better, teams are more likely to feel connected and comfortable. Assign a dedicated mentor for new hires to adapt to the new job faster. It is also important to help the new employees with reliable resources for them to transition into the new role smoothly. 5.) Implement the right collaboration tools The right collaboration tools help the teams to work together efficiently and make their workdays more productive. With plenty of options available online, it is crucial to select one that suits your team and your working process the best. InkPaper is one such collaboration platform that streamlines the entire contract workflow process for you. From effective communication with the internal teams to contract negotiations with external stakeholders, you can do it all in a single space. 6.) Have a one-on-one meeting regularly Regular communication is important for keeping the distributed legal teams feel connected and productive. Try to have a one-on-one meeting at least once a month on the progress of a project and the goals set for the upcoming week. Also, appreciating their work individually helps them feel valued. One-on-one meetings also give the team members opportunities to raise questions and discuss difficulties that they might not feel comfortable sharing in a group. 7.) Promote bonding activities Since for distributed legal teams, in-person interaction is not an option, having regular fun sessions or activities helps the team to bond together. Conducting virtual happy hours or game nights periodically helps in creating a fun atmosphere at work. This bonding session will also elevate harmony among team members. Additionally, hosting an in-person get-together once or twice a year also helps in getting to know your team better. 8.) Involve the entire team in the discussions During the regular brainstorming sessions or new projects discussions, it is important to make sure everyone involved is present in the meeting. Well-structured meetings which allow every member to feel heard helps in getting many useful ideas quickly. One way to ensure all the team members provide inputs into the meeting is by conducting regular workshops and exercises for project planning. 9.) Set meeting agendas In remote work culture, not keeping a track of the numerous meetings may end up draining teams’ energy. Hence, setting meeting agendas beforehand helps in being more productive. As a legal team manager, set clear goals, list down topics to discuss when inviting members for meetings. 10.) Plan short meetings It’s easy to lose track of time when discussing important project plans and statuses of a particular legal case. Along with setting a meeting agenda, it is equally important to time the meetings and keep them short and meaningful. One way to achieve this is to let people know what topics are going to be discussed and use a timekeeper to keep track of time efficiently. 11.) Create effective project communication It is important to implement an effective project communication technique for everything to run smoothly. Use tools that help all the distributed team members get a complete insight into the progress and updates of a project. An effective communication platform must help mitigate risks and provide secure centralized storage. With easy accessibility and faster reviews, InkPaper, a contract workflow platform helps distributed legal teams accelerate the crucial part of the legal system i.e. the contract workflow and reviews. 12.) Set clear roles and responsibilities of team members While working with distributed legal teams it is important to avoid misunderstandings. You can avoid it by setting clear expectations of project delivery for each team member. Assign each member a dedicated role and responsibility and describe them clearly. Also, explain to the team how each task needs to be completed in the given set of time within the relevant standards. 13.) Have a backup plan for critical tasks When working with a distributed legal team you can’t necessarily appoint any team member with a new task immediately during an emergency. Hence, having a backup plan and a team prepared to handle unforeseen circumstances helps mitigate project risks. One of the ways this can be easily managed is by assigning buddies within the team. They should be in the loop of the current ongoing work amongst each other so that they can take over on short notice if the need arises. 14.) Use your time well Often in a remote environment, there is not a specified time schedule for work. Sometimes due to long meetings, project deadlines, or unplanned tasks the working hours may exceed. Hence, using your time well is important to handle these tasks well. You can categorize your time into planning, thinking, executing, etc, to use it effectively. Making a to-do list also helps in making sure important tasks are not missed and time is used efficiently. 15.) Appreciate teams for their work Every human craves appreciation. Hence, hosting weekly or monthly meetings to appreciate team members is important in managing distributed legal teams. Especially for those who have done their work well, this encourages them to deliver great results consistently. Conclusion: People management is important in running a business, law firm, or large corporation effectively. But as people are returning to work, some are still opting for work from home. Using these tips well will help you in remote as well as hybrid work environments. A happy and well-managed team will increase productivity and revenue for your business. About InkPaper: InkPaper is a contract workflow platform that accelerates the contract lifecycle digitally. Distributed legal teams and external stakeholders can collaborate effectively to review, redline, edit, negotiate, approve, and store the contracts all in a single space. Use InkPaper and do more work in less time.
Why is it Important to Review Contracts and Who Should Do it?
Let's first answer some of the important questions like why you should review contracts before signing? Who should review them? What to look for in contracts, and tips for successful contract review? Contracts are vital to every business. Contracts govern everything that enables an organization to function properly, from money flow to sales, procurement, and employment. A well-written contract marks the start of a fruitful partnership. In contrast, a poorly written contract can get you into serious legal trouble. Poor contracts risk committing to obligations you can't fulfill, damaging your company's reputation, and wasting valuable time and financial resources resolving disputes that can be avoided with proper contract review. What is Contract Review? Contract review is the thorough examination and understanding of a legal agreement before signing. It can be conducted either manually or with a contract review platform. During the contract review, it is crucial to ensure that the contract is clear and accurate, free of potential conflicts, and includes every contract element. Why is it Important to Review Contracts? Contract review ensures that your contract rightfully reflects your intent and expectations. It is critical to every contracting process, whether complex or straightforward. A contract review helps reduce risks, increases benefits, and provides all the parties involved a chance to understand what they agree to before signing the contract. Since laws and contract regulations constantly evolve, it sometimes causes what was once a standard contract to become ineffective. Hence, regular contract reviews are essential to uncover uncertainties or outdated provisions and identify possible improvement areas. Even though contract reviews require time and resources, it is still much less expensive than defending a contract dispute. By taking care of contracts, you take care of your business and protect it from legal risks. (Learn more about different types of contractual risks and how to mitigate them here) Who Should Review Contracts? The contract review process involves multiple people. The process might start with a sales representative, who initiates the draft, decides the fundamental values, and then passes it on to the other reviewers, reviewing the entire contract carefully before forwarding it to the legal team. An in-house legal counsel or law firm then reviews the agreement to ensure it is legally binding, includes all the clauses, and is clear and accurate. The contract is then forwarded to the counterparty or the stakeholders for review. The counterparty reviews the proposed agreement to ensure that the legal and commercial terms are agreeable and work for them. The process of contract review may differ according to each reviewer. The stakeholders review the contracts and either accept, reject, or suggest some changes. The drafting party will again review the changes and the suggestions. Hence, the contract goes through a lot of back and forth until the final approval is obtained and the contract is signed. (Learn how you can fast-track contract reviews with InkPaper here). What to Look for During the Contract Review? Contract review checklists ensure every element of the contract is reviewed carefully. When conducting a contract review, it is helpful to follow a plan. A contract review checklist makes it easy to highlight problem areas, eliminate mistakes, and minimize risks. Here are a few things you must look for during the contract review process: 1. Analyze Key Clauses and Terms Every line in the contract is important and needs to be thoroughly reviewed. But some clauses and terms are more significant and must not be neglected. The key clauses may vary for different companies, but some crucial provisions are common to most businesses, such as: a. Confidentiality: Protects sensitive business information from being made available to the general public or competitors. b. Indemnity: Sets out to protect one party from liability or loss arising from the transaction. c. Termination: Authorizes parties to terminate an agreement without breaching the contract under early termination and mutual termination. d. Dispute Resolution: Determines how you want to deal with the resolution of disputes. While reviewing key clauses and terms, you must ensure you have mitigated as much risk as possible. 2. Check Termination and Renewal Terms Before signing the contract, you need to comprehend the contract's termination fully and renewal terms to avoid getting locked into an agreement longer than you intended. Factors like automatic renewal language and opt-out windows are checked. Hence, you know when and how you can cancel the contract and what are the consequences of not notifying the counterparty by a given date. It also ensures you keep track of the deadlines and start planning ahead of time for new contracts. 3. Aim for Clear Language When reviewing contracts, look for unclear language that might lead to misinterpretation. If the counterparty oppositely interprets the unclear terms, it may lead to potential conflicts. It is best to keep the language clear and ensure that all the terms are laid out correctly. 4. Look for Blank Spaces Using contract templates is a great way to save time while drafting the contracts but requires careful attention while reviewing. Pay close attention to either filling out the blank spaces or removing them if not needed. Contracts with blank spaces can result in severe legal consequences. 5. Audit Default Terms Typically, both parties entering into a contract has good intentions, but there is always a possibility that one side won't deliver according to the terms of the agreement. Which then leads to a breach of contract. One may need to audit default clauses, so you understand the possible consequences of not fulfilling your obligations. It also helps you learn the options available to you if you are the non-breaching party. 6. Note Important Dates & Deadlines Verify that all dates and deliverables align with all the verbal agreements. Also, start tracking everything your organization is accountable for executing when the contract goes into effect. 7. Allocate Risks Carefully Review all the risks that have been accounted for fully and determine how risks are allocated between each party. If a contract assesses too much risk for one party, it probably needs negotiations to reach a balance where risk is distributed fairly to all parties. 8. Comprehend Remedies Provisions You should always be prepared for the worst-case scenario. It is essential to be aware of the options available to you in the event of unfulfilled promises. Parties must familiarise themselves with limiting their liability or pass it to a different party. Also, it is essential to know what course of action needs to be taken in the event of a default. 9. Confirm Signature Lines Parties should confirm that signature lines are referred to the correct individuals authorized to sign the contract on behalf of the business. Otherwise, the contract may not be enforceable. 10.Review the reference documents When another document is attached to the contract, give those documents as much attention as the initial contract. There can still be critical information in these reference documents, which may cause risks if left unaddressed. Tips for Successful Contract Review Now that you understand why you should review contracts, who should review them, and what to check while reviewing them, here are some tips for doing it efficiently: Ensure sufficient time is allotted for contract review. Carefully reading and analyzing every line in a contract takes considerable time, especially for lengthy and complex contracts. Overlooking minor mistakes like misplaced commas can land you in a legal dispute. 2. It is best practice to have multiple people review a contract. Ensure someone other than the person who drafted the contract also reviews it. A person reading the contract for the first time is more likely to catch an error or a typo faster. It will increase your chances of executing a contract successfully. 3. Review contract for new drafts and existing agreements. Reviewing contracts at the time of renewals help fix previously overlooked mistakes and change language according to the updated industry regulations and guidelines. Hence it is best advisable to review contracts regularly. 4. Conducting a thorough line-by-line manual review of contracts is an outdated process. It takes weeks to execute the contract after the constant back and forth of negotiations. It becomes convenient with contract workflow management platforms to review lengthy contracts quickly within hours. Adopting a contract review platform like InkPaper offers the ability to select templates, draft, redline, collaborate, negotiate, track, sign, and store contracts all in one place. Ready to Get Started? With InkPaper's Contract Workflow Management platform, you can easily manage multiple contracts and do more work in less time.
ROI of Legal Technology Explained with 25 Incredible Stats
Digital disruption is changing every industry around the globe - legal is no different. Although the legal sector has been a little slow in investing in technology, law firms are gradually making a digital shift. They are more frequently adopting legal tech solutions to streamline legal operations and automate repetitive tasks. Legal tech accomplishes everything from automating contract management to accelerating case delivery and improving client satisfaction. These legal technologies have empowered legal professionals to increase work efficiency and maintain a healthy work-life balance. Let’s learn the ROI of legal tech and how the legal industry embraces technology. ROI of Legal Technology Explained with 25 Incredible Stats According to Statista, the ROI per every U.S. dollar invested in legal tech in North America equated to around $6.68 in 2019. By 2025, the ROI is expected to rise 3X and hit $9.14. Bloomberg law’s ‘2021 Legal Operations Survey’ reports the following improvements due to the adoption of legal technology. 1. 84% of law firms and 63% of in-house legal departments praise legal tech for boosting their efficiency. 2. ‘Law 360 Technology Survey’ reports that, on average, 9% of lawyers’ time can be replaced with automated tasks, thus increasing efficiency. 3. Nearly 91% of law firm leaders adopt technological solutions to cut costs. 4. An insight gained from the Bloomberg Law’s survey says that law firms have reported that efficiencies from tech use have risen by 50% from 2019. 5. Lawyers have indicated that improved productivity and efficiency is the key driver behind legal tech adoption in law firms. 6. With the adoption of legal tech, the quality of work has improved tremendously. Lawyers are happy with how tech is impacting their day-to-day work. 7. 71% of law firms report the use of tech results in improved quality of work. And nearly three-quarters of lawyers (73%) spend less time on lower-level tasks using technology. 8. McKinsey Global Institute estimated that 23% of work done by lawyers could be automated by existing technology. Top Tech Solutions Adopted by Law Firms and In-house Legal Counsels. Efficient Timekeeping and Billing Using timekeeping software to track billable hours can save up to $39,000 per year for a single attorney. Tracking time and billing using technology results in more accuracy than manual records. Accelerating Legal Research According to the ‘ABA profile of the Legal Profession 2020’, nearly 65% of lawyers use online research technologies rather than traditional print materials. The online research tools help accelerate legal research, which took 18% of lawyers’ time. Among the firms that use AI, nearly half use it for contract review and negotiations, and 86% said they use AI for legal research. Securing IP Management Legal tech is enabling professionals to simplify trademarking, copyrighting, and patenting processes. · According to the survey by Netwrix, 51% of respondents label human error as a primary cause of IP infringement. AI and machine learning algorithms help professionals search historical data to compare the new IP patent to similar ones and identify infringements. Automating Contract Reviews 1. Deloitte’s 2021 annual report highlights that using legal tech helped teams achieve 50% time-saving compared to a manual document review. 2. Industry ARC shares that with the help of legal tech, a contract can be reviewed in less than an hour, saving 20-90% of the time needed to perform this work manually without sacrificing accuracy. 3. AI legal tech offerings for businesses increased nearly by two-thirds in 2021 compared to 2020. 4. JP Morgan reported that their in-house program, COIN extracts 150 attributes from 12,000 commercial credit agreements and contracts in a few seconds using legal tech. The task is equivalent to 360,000 hours of legal work by lawyers and loan officers per year. 5. 70% of businesses indicate that “using tech to simplify workflow and manual processes” to cut costs. Enhancing Security Via Cloud Storage The ABA 2019 legal technology survey reports that 58% of respondents use web-based software services. When you move your database to the cloud, the overall speed of operations improves dramatically. Lawyers continue to use popular consumer cloud services, and 36% invest in cyber liability insurance policies to protect themselves from security breaches. Improving Client Satisfaction Customers expect and demand a positive digital experience. Law firms that invest in providing a positive customer experience outperform their competitors by 80%. Embracing the Legal Technology The right use of tech tools makes law firms more competitive in the market, so spending is also set to increase. Gartner predicts that by 2025, legal departments will increase their spending on legal technology by 3X. Legal tech spending is projected to rise to 12% in 2025 from 3.2% in 2019. · According to Crunchbase, venture and growth capital investments into legal tech startups hit a whopping $1 Billion. Wrapping up These impressive statistics show the impact technology has on the legal industry. Technology has positively affected every aspect of the legal domain, from legal research to contract management. With new advancements and innovations coming in the legal industry, many firms embrace technology. As per the Wolters Kluwer report, 50% of the lawyers expect AI, Big Data, and Predictive Analytics to benefit the industry. And 47% of law organizations plan to make adjustments and adapt their processes for innovative technologies. The future of legal technology is looking bright. The market is growing gradually. With more acceptance from legal professionals, it will only become more robust.