A Tale of Two Companies: Lost & Found in the Land of Contract Analysis
Both companies needed to quickly understand how the regulatory change would impact their businesses—not an easy task by any means. Both companies had an abundance of data, much of it complicated and buried in their documents. Each was already grappling with increasing business demands and lacked resources to handle the challenge of having to comply.
With little time at hand, Lost Capital and Found Management set off to perform a contract analysis and interpret the regulation against their data in order to deliver a strategy for success. Let’s take a closer look at each of their journeys.
1. Company #1: Lost in the Land of Legal
Lost Capital was scrambling to find the best way to conduct a massive contract review. The documents were located in a number of disparate systems with no way to connect them. The head of legal and compliance had no means to centralize a search against the data itself. Up until then, the agreements existed in so many file types, formats, and locations that it was nearly impossible to find the data they needed.
According to the Institute for Supply Management, a typical Fortune 1000 company manages anywhere between 20,000 to 40,000 active contracts, at least 10 percent of which are misplaced, difficult to find, still in paper form, or on a file share somewhere, buried in an email attachment, or otherwise unmanaged or forgotten.
Without a Content Intelligence platform, the only way to find and classify their documents by contract type and to identify key clauses was through an arduous manual process. This is a difficult undertaking considering many of the contracts contain non-standard language, are missing data, and are heavily duplicated.
Unsurprisingly, the general counsel respondents to a Lexis 2018 study demonstrated that more than half of them—53 percent—spent “too much time on repetitive tasks.”
To navigate these significant hurdles, Lost Capital had one of two choices. They could:
1. Reassign a group of existing employees to manually comb through thousands of contracts, taking them away from—or adding to—their existing responsibilities.
2. Hire a team of subject matter experts to address the regulation at a significant cost.
The company was also putting itself at risk of making mistakes associated with manual contract analysis and potentially missing the compliance deadline. Either way, Lost was not in a position to extract and utilize intelligent data to meet regulatory compliance.
2. Company #2: Found Facts in the Files
Found Management, on the other hand, already had Contract Analytics software in place that allowed them to instantly connect to their contract repositories and funnel their data into a system. The contracts were automatically standardized and made searchable, eliminating duplicates, and getting rid of trivial, obsolete information.
Equipped with a software solution designed to deliver Contract Intelligence, Found Management was able to instantly gather contracts for analysis and processing, surfacing all the intelligent data relevant to the new regulation.
They utilized automation to surface key insights, like contract types, clause presence, and signature counts. They had contract information categorized in a way that enabled their business leaders to instantly ask questions and retrieve answers of the data to help them start planning for remediation.
Since they were proactive about securing a Content Intelligence solution, they were poised to react swiftly to the next industry regulation, and each one after that.
The Final Verdict
The business with a robust Contract Analytics solution will move with agility when faced with challenges that demand answers. The one faced with manual contract analysis will face a slog that leaves them vulnerable to stagnation, or worse. If your company is feeling “lost,” a robust software solution like Adlib’s Contract Analytics platform will provide a better way of understanding regulations and the impact they will have on your business rather than continuing to do the same exercises manually. It isn’t too late to get “found.” The time for transformation is now.