Contract Visibility

Contract visibility refers to an organization’s ability to access, view, and track key contract details throughout the contract lifecycle. Approximately 50%–60% of mid-to-large companies today manage contracts manually using Word documents or Excel spreadsheets, highlighting a clear problem. This approach lacks instant visibility, making it difficult to quickly review contracts. Without an intelligent CLM system, contract management can quickly spiral out of control.

Challenges in achieving contract visibility

The following are the top challenges in keeping contract visibility and control manually:

1. Decentralized contract storage

Contracts stored across various departments, platforms, or even physical locations make it difficult for all stakeholders to access information easily. Decentralization leads to fragmented data, making it time-consuming for teams to locate specific contracts or details when needed. Without a centralized system, essential details are often lost or overlooked.

2. Manual tracking

Many organizations still rely on manual methods, such as spreadsheets or paper-based filing, to track contract data. Manual tracking is error-prone, time-consuming, and often results in outdated information. Missed obligations can lead to penalties and risks.

3. Complex contract terms

Contracts often include intricate terms, conditions, and clauses that can be challenging to track and interpret, particularly in long-term or high-stakes agreements. Complex language and varying requirements can obscure critical details, making it difficult for teams to ensure compliance. Without the right tools, tracking these key terms can be prone to error, leading to non-compliance or missed obligations.

4. Access control issues

Achieving contract visibility requires balancing access with security. Sensitive contract data must be protected, but restricted access can prevent relevant stakeholders from retrieving necessary information. Manual collaboration can impact transparency and compliance.

The importance of contract visibility for pre-and post-execution

Contract visibility is crucial throughout both pre- and post-execution phases of contract management, providing numerous advantages:

1. Better resource allocation

Contracts outline the resources needed for obligations, from staff time to materials. Visibility in the pre-execution phase helps allocate resources for project readiness, while post-execution visibility ensures that teams have what they need to meet deadlines and milestones.

2. Enhanced compliance

During pre-execution, visibility aids in understanding regulatory requirements and setting up compliant terms. Post-execution ensures timely tracking of obligations, such as payments and service timelines, helping organizations avoid penalties and stay in line with legal standards.

3. Risk mitigation

Pre-execution visibility allows teams to assess and address potential risks in terms and clauses. Post-execution provides ongoing oversight to identify trigger events like expiration dates or renewal clauses, allowing proactive risk management to avoid costly lapses.

4. Improved financial management

Visibility into financial terms in pre-execution aids negotiation for favorable terms. Post-execution supports cash flow management, timely payments, and cost tracking. Access to discounts or penalties ensures budget alignment and spending efficiency.

5. Cost reduction

Increased visibility during contract management enables organizations to identify and act on cost-saving opportunities, leading to better efficiency and financial optimization across contract lifecycles.

Gain better contract visibility and control with CLM

You can gain contract visibility with AI-based contract management. Here’s an overview of its key features:

1. Centralized contract repository

A single central workspace that consolidates all contracts into a single, unified workspace. This repository reduces time spent searching across disparate systems by providing instant access and retrieval options, which can help prevent risks like missed renewals or penalties for non-compliance​​.

2. Advanced search capabilities

Equipped with AI-based data extraction, AI-powered CLMs have a search function that allows users to locate contracts or specific clauses based on various criteria, such as parties, keywords, or dates. This feature supports a quick retrieval of essential contract information.

3. Automated tracking and alerts

CLMs automate reminders for key dates (e.g., renewals or compliance milestones), helping teams stay on top of obligations and reducing risks associated with missed deadlines. Automated alerts streamline compliance management, ensuring proactive contract oversight​.

4. Process tracking dashboard

The process tracking dashboard provides real-time insights on contract performance, allowing users to monitor contract metrics and quickly address bottlenecks in the pre-execution stage of contracts. This dashboard is essential for organizations looking to expedite approvals and stay updated on contract statuses across departments​​.

5. Role-based access controls

Most CLMs offer configurable access controls that allow administrators to manage who can view or edit specific contract information, ensuring security and data privacy within teams while facilitating secure collaboration​.

6. Analytics and reporting

Advanced analytics tools enable teams to extract actionable insights from contract data, helping identify patterns, optimize workflows, and predict future needs, thus driving strategic decisions based on past performance trends​​.

Wrapping up

HyperStart CLM’s focus on contract visibility empowers organizations to centralize their contract data, automate alerts, and leverage real-time analytics, which enables informed decision-making and efficient contract lifecycle management. Book a demo today.

Related Glossaries