The most common misconception we hear at Jurois that legal teams think the contract process isn’t yet a problem for them. Lawyers believe that they don’t have the volume of business or scale of operations to consider a solution for their contract process. But when we dig a little deeper, it becomes apparent that the problems already exist in other parts of the business, and legal don’t have visibility on those challenges.
How to know if your contract process is broken
Here are five signs that your contract process is broken.
1. No central source of truth
Everyone in the business needs to report. I’m in sales, so I report from Salesforce on my sales pipeline. Similarly, lawyers need to be able to efficiently report on their contract workflow, but without devoting two or three days’ worth of time to finding all the data.
Funding rounds are a great example of this. When businesses approach a funding round, they have lots of due diligence to tackle and contracts to collect. That job falls on one or two people in the company, in finance, operation, or, most likely, legal. When speaking to legal teams in this situation, I usually ask about the ‘hows’ of this process: how do you start? How do you keep track of all your contracts? Are they all in the same place? How do you ensure that you’re ready for investors to take a look? Are you prepared for a contract audit?
I hear similar responses every time: the legal team couldn’t find all the contracts they needed in the CRM. Then they turned to Google Drive, but they weren’t sure if the versions stored in that drive were up to date or approved by the counterparty. Spread across the company’s systems, there’s just this lost wardrobe of contracts that don’t sit together - and it takes days or weeks to try to pull that information together.
This happened recently with a prospect I spoke to, who spent several weeks trying to piece together all this information for a funding round, when really, that time could’ve been dedicated towards high-value work, like strategy and key legal terms. If you have to turn towards more than one source of truth to find your contracts, you don’t have an effective contract process.
Find out how we helped Masabi create a single source of truth for their contracts.
2. Friction between teams
Legal teams are necessarily risk-averse. They can sometimes feel that sales are too reliant on them for low-value contract work, which is a problem when legal resource is already stretched. And conversely, salespeople need to move fast. They think legal teams spend too long drafting or negotiating contracts, with minimal visibility into their workflow. Unrealistic expectations on both sides can lead to friction, and a worst-case scenario where sales avoid legal involvement entirely. That’s a huge risk, and a clear sign your contract process has gone wrong.
“A backlog of tasks can slow the business down. If there are processes that could be automated to change this, it’s hard to think of a good reason why this shouldn’t happen”
For fast-growing companies, Juro can be a central component in defining what that contract process should look like. Our legal customers have admin rights over the templates in Juro and can enable a self-serve workflow where sales teams can easily create their own contracts without taking up too much of their time. If I’m working on a contract in Juro, I know where it needs to go once I’ve drafted it, and I quickly see the contract’s status at any point. Both sales and legal have a clear understanding of ownership and approval rights, avoiding friction altogether.
Is the contract process a point of friction between your legal and sales teams? Find out how we solved it for Secret Escapes - or hit the button below to find out how your business could win back 70 per cent of time spent on contract admin.