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Case study: Contract Management in the Education sector serving multiple organisations

Case Study Contract Management in the Education sector serving multiple organisations

 

Name: Educa
Website: www.educa.ch
Industry: Education
Employees: 50
Size Midsize

 

 

Case Study Contract Management in the Education sector serving multiple organisations

Name: Educa
Website: www.educa.ch
Industry: Education
Employees: 50
Size Midsize

 

Key Improvements

%

Reduction of copy-paste mistakes

%

Of time saved

Templates automated

Background


Educa examines technological developments and links them to quality improvements in compulsory education (primary and lower secondary level), vocational education and training, grammar schools and technical secondary schools (upper secondary level). It lays the foundations for the Swiss digital education area space throughout the entire country.

“We follow developments in digital transformation as they apply to the Swiss education space. Combining the constant strive for quality with application of state-of-the-art technology is at the core of our corporate mission. That same ambition shapes the choices within our digital workspace.”

Challenges

 

  • Educa needed a way to quickly automate multi-document packs for suppliers, manage approvals, etc.
  • System had to be cloud-enabled so to create universal contracting across all cantons.
  • Needed to be able to grow with the team as their technology and complexity demands increased.
  • Needed a secure environment.

Challenges

 

  • Educa needed a way to quickly automate multi-document packs for suppliers, manage approvals, etc.
  • System had to be cloud-enabled so to create universal contracting across all cantons.
  • Needed to be able to grow with the team as their technology and complexity demands increased.
  • Needed a secure environment.

Onboarding

 

  • Internal training for users.
  • Educa immediately began to use Legito as the company’s overall document lifecycle management tool.
  • Legito’s ongoing development, enhancements, and feature releases allowed the use case to expand to eSignatures and Approvals.

Onboarding

 

  • Internal training for users.
  • Educa immediately began to use Legito as the company’s overall document lifecycle management tool.
  • Legito’s ongoing development, enhancements, and feature releases allowed the use case to expand to eSignatures and Approvals.

Template Automation

  • Over 10 different template suites have been created.
  • Most popular contains over 20 different documents.
  • Ensures universal and universally current contracting language across all documents.

Template Automation

  • Over 10 different template suites have been created.
  • Most popular contains over 20 different documents.
  • Ensures universal and universally current contracting language across all documents.

Workflow Automation

 

  • Multiple workflows in use depending on document and supplier.
  • Workflows in use to streamline document review and approval process across organization.
  • Workflows are also used for uploaded documents – where Legito functions as document management software.

Workflow Automation

 

  • Multiple workflows in use depending on document and supplier.
  • Workflows in use to streamline document review and approval process across organization.
  • Workflows are also used for uploaded documents – where Legito functions as document management software.

DocuSign Integration

 

  • Integration with DocuSign has been deployed at Educa.
  • Individual document processes are handled via Docusign Integration.
  • Significant savings in time and hassle have been realized through this integration alone.

DocuSign Integration

 

  • Integration with DocuSign has been deployed at Educa.
  • Individual document processes are handled via Docusign Integration.
  • Significant savings in time and hassle have been realized through this integration alone.

Results

 

  • Savings in time across contract processing.
  • Better control over contract content and thus compliance using Legito’s control over unauthorised edits in the templates.
  • Contracts managed in accordance with Educare internal procedures with centralized data management and monitoring.

Results

 

  • Savings in time across contract processing
  • Better control over contract content and thus compliance using Legito’s control over unauthorised edits in the templates.
  • Contracts managed in accordance with Educare internal procedures with centralized data management and monitoring.

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Democratizing Enterprise Contracts

Democratizing Enterprise Contracts

Democratizing Enterprise Contracts

Automation as a tool for reducing bottlenecks with In-House Legal and other teams

Most companies sell a product or service to generate revenue. Of course, commercial teams actually sell the products, but other departments are just as essential to day-to-day operations, such as Human Resources, Finance, Compliance, and Legal.  These teams do not operate in a bubble, but constantly rely on one another for knowledge sharing, and quick decision making.

In-house legal teams tend to work with each of these departments and are involved with just about every aspect of decision-making processes. Often perceived as an unfortunate but necessary “spend,” many legal departments’ true tasks help guarantee uninterrupted and increased revenue.

Documentation, operational transparency, and ease of access to information are some of the unsung responsibilities legal departments must resolve to keep the business functional.

Interconnectedness / interdependencies between teams, especially as they intersect with the scope of responsibilities of the in-house Legal team, can create serious consequences for any company.

But there is hope, and Document Automation and Contract Lifecycle Management is it. 

 

The Challenges

What could go wrong? A lot actually. Some of the most prominent challenges for each team are below:

 

Legal Team

Legal teams form the backbone of the company itself. A team of highly educated attorneys spends a lot of time making simple and often minor changes to contracts, like changing a clause on governing law, or assignment, as well as maintaining several different versions of templates for different departments.

And of course, the Legal team is the go-to department for time consuming but low priority questions like “can we make this product?”

This leads to a bottleneck because the legal team ends up spending the majority of their time doing document maintenance for which they are overqualified. Meanwhile, the places where they can really provide value (and where they want to provide value); negotiation of terms, analysis and mitigation of potential risks to the company itself are either pushed to the back, or limited in the time they can be given.

Hiring more legal professionals is one option but that creates additional costs and has risks in itself, and as lawyers know, the more hands there are, the more work appears.

What to do? How can legal teams get back to the work they need to do, while retaining control over contracts and other language and policies?

 

The Commercial Team

Commercial teams sell the product – be it in an online store, or a multi-month B2B sales cycle, and get the paperwork into the hands of customers.

Without the proper technology, opaque contracting process leads to back and forth between parties, and this “ping-pong” effect extends sales cycles – sometimes to where it takes months to negotiate the full contract after the essential terms (price, quantity, delivery) are amicably agreed by the commercial teams; because legal review drags on.

It can also create high risk contracts (e.g., lawsuits or non-compliance to regulations and law), and most importantly, a lack of trust between employees, the company, and its customers.

The bottom line is that where bottlenecks exist, the bottom line is affected. Not only to contracts take longer to negotiate past the basic, mutually agreeable broad strokes, but in an effort to expedite the process unapproved or outdated clauses can appear that create liability where none should exist, and in the worst cases – revenue is lost because it just takes so long to get the deal done.

But how to support the bottom line without exposure to risk or hiring packs of lawyers just to negotiate deals quickly? 

 

Human Resources

Human Resources teams, or “People Services,” not only make sure of the welfare of all the employees at an organization, but also work to make sure the organization stays safe from risk. Many of HR’s responsibilities require legal oversight and review along with coordination with the Risk and Compliance departments to ensure compliance with law and business standards.

The ability to hire people quickly in a competitive market makes it imperative that HR teams move quickly to secure candidates before they are snatched up by a competitor. The faster employment contracts can be generated, delivered, and executed, the better.

If only there was a way to streamline this process so that HR can hire quickly and efficiently, while maintaining compliance with regulatory matters.

These aren’t the only departments who face challenges as part of an integrated/interdependent business environment, just the best known. Challenges exist anywhere where teams need, but don’t have the most up-to-date, approved language/policies, or can’t move deals forward for lack of legal review.

 

Automation to the Rescue

Almost every commercial enterprise encounters these challenges in their day-to-day activities, but they are difficult to “manage away”or “hire away.” Finding a solution specific to an organization requires finding tools that are both robust and flexible.

 

Document Automation and Contract Lifecycle Management tools are the answer.

When properly leveraged, the right Document Automation and Contract Lifecycle Management software democratizes the contracting and document management process, because the Legal team is not the “holder” of all of the contracts. Though they provide the components, the contracts can live on their own among the teams involved removing organizational blockers.

Granting more autonomy to different departments (i.e., granting more document creation ability) saves time for everyone, while assuring legal teams of the accuracy and compliance of all the company’s documents.

What can these tools do?  

 

Automated Document Assembly

Commercial team members can now create  their own contracts without needing to be experts in contract law.

Representatives may enter deal information from their opportunities (or have the fees and product details automatically extracted) to automatically draft contracts that contain the correct terms, conditions, and ancillary documents – all created by legal, but locked to protect against unknown-added risk.

Approved language dynamically completes agreements, so the highly qualified legal team personnel spend less time drafting and reviewing contract language, and more time on high value projects.

Conversely, Legal retains control over the clause language itself, so they can be secure in the knowledge that even though contracting is democratized, and commercial teams are able to do their own contract assembly, they are not somehow letting the genie out of the bottle and opening the company up to risk or compliance issues by turning untrained commercial team members into de facto lawyers.

In some cases, this approach can reduce Legal team workload in contract drafting/review by up to 95 %, and reduce time to execution from several months down to a matter of days.

But the benefits occur also to Human Resources and Finance departments, who are able to automatically populate information from external databases or spreadsheets to quickly complete forms and reports.

 

Workflows and Approvals

Although fewer deals require legal review, for situations that require language that is not dynamically drafted into agreements by the software, or available in a clause library, clear and transparent Workflow and Approval processes are defined.

There is no longer any guess work about who is responsible for the approval, and there is always visibility on what stage of the review process the contract is in. Legal no longer bears the full responsibility – all the key stakeholders are accountable for their role in completing contract negotiation.

Documents that require review and approval from different departments can be routed quickly to the correct departments using predefined rules.

 

Communication Tools

Sharing documents and information quickly is important, but being able to share information and notes, new information, and comments is just as crucial.  In Document comments, Real-Time Conversations / Chat, Track Changes, and Redlining features help all the stakeholders stay connected.

 

Deadline Reminders

Data pulled from contracts automatically creates deadline notifications for renewals, and termination notice dates. This gives teams plenty of time to prepare renewal negotiations, for the organization to get out of bad contracts, or to repaper contracts that fall foul of new regulatory obligations.

 

Conclusion

Interconnectedness and interdependencies between legal and other teams within any company creates inherent challenges for each team involved.

Legal teams are overburdened by the need to review/approve documents – including agreed but unexecuted sales agreements, also to maintain compliance, and defend against risk. Commercial teams are delayed by overburdened legal teams, and HR teams need legal review for hiring, layoffs, and changes in compensation.  Being the hub of interdepartmental resources inevitably forces the legal team to slow down process flows, in order to protect the organization.

But there is hope.

Document Automation Tools help all of a company’s key departments work seamlessly with Legal, and with one another through the Legal team to increase overall productivity, while maintaining the necessary level of risk protection, compliance, rights maintenance, and others. Granting more autonomy to different departments (i.e., granting more document creation ability) saves time for everyone, while assuring legal teams of the accuracy and compliance of all the company’s documents.

In other words: They make it possible to democratize contracting. Automated Document Assembly / Contract Lifecycle Management is not just a solution that is solely for the benefit of Legal, but is a necessary business tool for the entire organization’s success.

 

 

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Webinar: Contract Lifecycle Management Automation

Webinar: Contract Lifecycle Management Automation

Our recent webinar on Contract Lifecycle Management Automation (CLM) hosted by Mark Settle, President of Legito North America, shows how Legito’s proprietary software provides companies with a comprehensive automated document management solution boasting such features as Automated Workflows and Approvals, Detailed Document Records, Secure Sharing, Electronic Signature, and more.

Take a look today, and learn how to make your business thrive with Legito’s CLM solutions.

Webinar: Contract Lifecycle Management Automation

Our recent webinar on Contract Lifecycle Management Automation (CLM) hosted by Mark Settle, President of Legito North America, shows how Legito’s proprietary software provides companies with a comprehensive automated document management solution boasting such features as Automated Workflows and Approvals, Detailed Document Records, Secure Sharing, Electronic Signature, and more.

Take a look today, and learn how to make your business thrive with Legito’s CLM solutions.

Start Automating Now

Case Study: Contract Automation for Procurement Department at a Retail Company

Case Study Contract Automation for Procurement Department at a Retail Company

dafiti

Name: Dafiti
Website: https://www.dafiti.com
Industry: Retail (Fashion)
Employees: 2,800+
Vendors: 300

 

 

 

Key Improvements

%

Drafting time saved

%

Time Saved On Audit Reports

%

Time saved in contract negotiation

Background

 

  • One of the largest E-commerce retail companies in South America.
  • Distributor of over 300 fashion brands.
  • Member of the Global Fashion Group.
  • Presence in 4 Countries.
dafiti
dafiti

Procurement Department

 

  • One of Dafiti’s busiest departments with respect to the volume of documents and contracts.
  • Responsible for closing contracts with suppliers and with other key partners/stakeholders.
  • Due to the very high document volume, Dafiti required a system capable of automating and improving its contract drafting, negotiating, approving, and signing processes.
  • Experienced a major challenge in the generation of numerous audit and analysis reports.

“I am constantly looking for solutions that really help us improve our internal processes. Without a doubt, Legito has allowed us to optimize processes for creating, negotiating, filing, and following-up on the organization’s contracts.”

Ignacio Roggero

Ex-CFO, Dafiti

Challenges

 

  • Due to the large size of the company’s business operations, handling over 300 fashion brands from around the world, the company’s contract volume is very high. With Legito, Dafiti has found a way to digitize and digitally transform this integral part of its operation.
  • The terms of business with each supplier are usually unique for that supplier. For that reason, the team of Dafiti Colombia needed a tool that allowed for dynamic and flexible action while simultaneously enhancing their contractual processes, all without sacrificing the quality and legal security that identifies their brand.
  • Their team, being a technology company, knew how to identify and solve improvement opportunities using innovation – digital transformation is in their DNA. However, Dafiti’s IT team historically had been focused on key operational and logistical parts of its business, and not contract management solutions.
dafiti

Evaluation

 

  • Because of the tool’s ease of use, the Dafiti purchasing team quickly implemented Legito tools successfully, and integrated them into their operation.
  • Their strong commitment to improving organizational processes was evident every step of the way.
  • Dafiti’s team has realized that in Legito they have not only found a set of tools that have solved their problems, but have also found a team committed to helping them adapt to any situation related to the implementation of the software, the development of the templates, and the management of their documents.
  • In less than a year, a majority of Dafiti officials are now using Legito daily, having already created over 435 successful contract records.

Onboarding

 

  • The Legito team has accompanied Dafiti closely during its implementation phase. This has allowed Dafiti to successfully use Legito, exceeding expectations.
  • Today the procurement department has a new way of creating audit reports. Easy, fast and efficient.
dafiti
dafiti

Results

 

  • Legito manages the entire life cycle, from the draft to signature.
  •  Purchasing department employees have dramatically reduced their document preparation times.
  • Through Legito’s External Sharing feature, Dafiti, with every document it shares, demonstrates to its stakeholders that they are an innovative and modern company, inside and out.
  • Dafiti is considering implementing Legito in additional departments to continue systematically improving its operations.

More Case Studies and Interviews

Frequently Automated Contracts And Other Documents

Frequently Automated Contracts And Other Documents

Frequently Automated Contracts And Other Documents

It doesn’t matter if you are from the US, Latin America, Europe or Asia. The most frequently automated documents are generally surprisingly similar, regardless under which law your company or law firm operates. 

To begin with, which contracts and other documents are automated most frequently? It depends – whether you work for a large law firm, small law firm, financial institution, real estate industry, or as a corporate counsel for a company operating in another business area.

Based on our long-term experience with over 100 000 users in 5 continents, we made a list of the most frequently automated contracts and documents:

 

Law firms

Law firms typically begin automation with these three simple documents:

  • Engagement Letters
  • Power of Attorneys
  • Non-disclosure Agreements

Subsequently, large law firms go further with automating

  • Set of security documents for bank transactions
  • M&A documentation (SPA, SHA, etc.)
  • Contracts and other documents for real estate transfers
  • Documentation for company formations (articles of association, board decisions, affidavits etc.)
  • Corporate governance documents (e.g. Board of Directors Meeting Minutes)

The rest of the documents typically automated by law firms depends on the expertise of a law firm, but in general, the most frequently automated documents are:

  • Escrow Agreements
  • Employment Contracts and other documentation for HR
  • Debt trading, collection and handling (e.g., Cease and Desist Letters, court filings, Settlement Agreements, etc.)
  • Class actions documentation
  • Family law agenda such as divorce & Separation documents, childcare documents or last wills
  • Documentation for public tenders
  • Licensing and IT contracts (EULA, Privacy policies, Terms and Conditions, etc.)
  • Insolvency and bankruptcy documentation

Financial Institutions

Of course, all banks, insurance companies and other high-volume financial businesses have automated their client documents, such as LMA Standard Documentation. However, we will rather be focusing on internal documents that are typically handled by corporate counsels, procurement or sourcing departments.

As an example, some of the documents automated within the area of purchasing services can be:

  • Contracts on providing services
  • Purchase Agreements
  • Master Service Agreements
  • Framework Purchase Agreements
  • Documentation for tenders
  • Amendments (Amending contracts)
  • Contract Prolongations
  • Termination Agreements, notices and withdrawals

Note: Last three documents are usually connected with agreements/contracts and therefore data from them can be transferred automatically.

Debt handling documents, on the other hand, can be represented by:

  • Notices
  • Cease and Desist Letters
  • Debt Transfer Agreements
  • Settlement Agreements

Lastly, here are some other often drafted documents:

  • Board minutes
  • Annexes to financial and tax reports and filings
  • Affidavits
  • Documents for processing of personal data
  • Employment Contracts and other documentation for HR
  • NDA/Confidentiality Agreements
  • Lease Agreements
  • Licensing

Real Estate Industry

Property managers, real estate agencies and developers use document automation a lot. Among the most popular documents for automation are:

  • Brokerage Agreements
  • Reservation Agreements
  • Property Purchase Agreements
  • Forward Purchase Contracts
  • Escrow Agreements
  • Commercial Lease Agreements
  • Rental Agreements
  • Termination documents
  • Documentation for land registers (usually depends on the country)
  • Construction Agreements
  • Master Service Agreements (property managements and repairs)

Other companies

Most of the companies are not in any of the above-mentioned categories. Does it mean they are not automating drafting and management of their documents? Or course not. They are automating as well. Among the usually automated documents are:

  • Engagement Letters
  • Contracts on providing services
  • Purchase Agreements
  • Master Service Agreements
  • Framework Purchase Agreements
  • Employment Contracts and other documentation for HR
  • NDA/Confidentiality Agreements
  • Amendments (Amending contracts)
  • Contract Prolongations
  • Termination Agreements, notices and withdrawals
  • Notices
  • Cease and Desist Letters
  • Power of Attorneys

More Industry Insights

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