Our client, a Fortune 50 Pharmaceutical Company, had a disjointed contract storage, review, and negotiation process due to their fragmented contract management function across multiple global locations. Attorneys across multiple geographical regions had made independent decisions about critical clauses in standard contract templates, resulting in a lack of uniformity across agreements and clauses that were out of line with the company’s standard.
Standard clauses needed to be unified so they were consistent across regions and with company standards in preparation for implementation of a common contract drafting, approval, and execution platform. The client also required clause libraries and guidance for how to create contracts to ensure consistency.
The client’s resources did not have the bandwidth to oversee this process of contract unification and required a third party to examine and adjust their clauses and process to ensure an effective, long-term solution. The client faced cost pressures while lacking a centralized team to take on the effort to project manage and standardize the workflows across global locations
To solve these issues, we implemented a strategy involving both our technological and resource based assets. Here are the steps we took to improve our clients workflow and provide value.
Increased efficiency and reduced redundancy
We mapped the client’s legal department processes to identify inefficiencies and applied best practices to achieve more consistent work, enhancing the client’s services across the globe.
We implemented a multi-shore approach with attorneys from its India and US locations. Templates were reviewed in five languages for multiple jurisdictions to standardize clauses by eliminating unnecessary language and identifying ‘best’ versions of individual clauses, along with providing some customization for certain foreign jurisdictions.
We implemented a multi-shore launch led by a centralized team and its attorneys. We reviewed templates in five languages for multiple jurisdictions to standardize clauses by eliminating unnecessary language and identifying ‘best’ versions of individual clauses. Our team tested and implemented all templates in five languages on the CLM authoring tool that would automate creation of new contracts. We provided a go-to negotiation tool inclusive of all the approved parameters and clauses they could negotiate.
Tech enhanced solution
Our team tested and implemented all templates on the CLM authoring tool that would automate the creation of new contracts, reducing spend and increasing productivity. We assisted with the review and preparation of all authoring training material for the client’s global support team.
Benefits & outcomes
The project was a success for the client and provided both short term and long term benefits. Here are some of the outcomes.
Consistent standard & clear guidelines
The client now has consistent standard versions of contracts with clear guidelines for which clauses can be negotiated. As a result, those agreements are now created efficiently and stored with final executed versions and metadata about key negotiated clauses.
All CLM services were coordinated globally through the managed services model to ensure timely implementation of the new program, utilizing our India based contracts management team combined with both India and US-based project management.
Standardized templates & a concise playbook
The total number of standard contract templates the client used was reduced from approximately 90 to 30, ensuring compliance with regional and domain-specific clauses. We developed a concise playbook and workflow process to document and implement a robust governance framework.
We supported and continues to support multiple global locations with CLM onboarding, training, negotiations, and recordkeeping functions.
Significant cost reduction
We implemented a CLM authoring tool to decrease the cost for contract creation by over 40%, significantly reducing the negotiation cycle.