The Top 5 Document Creation Challenges

Every company is unique, but chances are that they have certain contract management issues in common. No matter what industry they are in, they all need to draft contracts. Lots and lots of contract. It is a very important that this is done in a safe, yet efficient manner. Because time is still money, right?

Category: Create • Author: Nick Renders • Published: 16 July 2020 • Article link

Every company is unique, but chances are that they have certain contract management issues in common. No matter what industry they are in, they all need to draft contracts. Lots and lots of contract. It is a very important that this is done in a safe, yet efficient manner. Because time is still money, right?

Studies show that companies lose between five to forty percent of value on a deal due to inefficient contract processes. But we have got good news for you; even though contract management is a complex process, most companies are challenged by the same problems. So there is a somewhat universal way to confront the problem that will work for the majority of companies!

In this blog post, we look at the typical challenges that companies face on a daily basis when creating documents. In addition, we want to provide solutions to the most common issues facing businesses of all sizes and in all industries.

1. Drawing up the same contracts over and over takes too much time
Let us be honest; it takes a lot of time to create contracts. Even for contracts that are used recurrently. The original contract gets copied, after which the individual changes must be made again and again. When that is done, we still need to read through the contract every time to make sure that nothing undesirable has changed or missed.

This is unnecessarily time-consuming. But it can be fixed by using contract templates. When it comes to recurring contracts, such as Non-Disclosure Agreements (NDA) or employment agreements, only certain parts change from contract to contract. Things like the employees name and the date of document instatement, for instance.

By protecting the template from changes to other parts than the varying ones, you save time looking for the entities to change and the contract review process will also speed up. With document automation software, you get a quality-assured contract in just a matter of minutes simply by answering a few questions.

2. Contract turnaround time is so slow
There are a lot of different issues that can slow contract turnaround time. Someone might not be able to locate the right template. Or maybe it takes a long time before the final check is done on the varying entities that have been changed.

Without a streamlined process, companies may have no idea why its contracts take so long to get approved. Because they do not have a systematic way to monitor how long a contract sits at each stage and identify delays.

Document automation software holds all contract templates in one central place. So you’re not wasting any time looking for that one contract anymore, as long as you properly rename specific templates. It also gives you the option to see at what stage the contract is. Are all the specific varying entities processed? If so, the solution can show you the contract is ready for a final check. So you always know at what stage of the whole process your document is.

3. There is no set process for review and approval
You now know it is possible to have a document or contract ready in no time. But after that, you need an efficient workflow to get a the document reviewed and approved as well. To do this as efficiently as possible, it is important to set routines and workflows – the more automated the better!

Modern software can help you a lot here, as it offers you everything you need to build these routines. Instead of reviewing the entirety of, for instance, a NDA, you give the approver the option to only review the variable parts. Think of someone’s name or the date of document instatement. The person who checks the document can choose to only see an overview of the specific parts that have changed and can quickly assess whether this has been done correctly.

4. Dealing with contract noncompliance
These days, there are a lot of regulations companies need to live by. This means that you have to handle your contracts and other documents in a very structured and precise manner so your company does not break the rules.

Let us take the General Data Protection Regulation (GDPR) as an example. It imposes obligations onto organizations anywhere, so long as they target or collect data related to people in the EU. If you want to be compliant, your company needs to work with strict data-privacy rules. Without a systematic way to track the inclusion of necessary regulatory language in all contracts, companies open themselves up to noncompliance and major fines.

With document automation software, necessary clauses are automatically included in all contracts. This ensures you are automatically compliant. And if regulations change, companies can respond by quickly surfacing all active contracts that could be impacted by new regulation and executing bulk actions against them.

5. Technology constraints
Document creation management did not always have the best technology surrounding it. This means documents could not be managed as effectively as we could now. Contract and document creation software is the difference between tedious contract management and good contract management.

These days, document automation solutions give you a hub to store all your important contract and document paperwork, plus you get loads of useful tools that make your contract management process a breeze.

There are currently several solutions in the market that offer a solution to the challenges mentioned above, like 3s.DAP from Spigraph’s Solution Software Suite. Feel free to contact us to learn more about this solution or to discuss other contract/document management challenges. Download this White Paper right here.