What are the Main Myths in Adopting Contract Management Software?

Myths in Adopting Contract Management

Despite contract management software being successfully used by businesses, no matter their size, to manage corporate agreements, some companies are hesitant to implement the system. Or if they do decide to implement it, staff can sometimes be reluctant to use it. This could be due to a negative experience in the past with another provider. However, if you are finding it a challenge to manage your contracts effectively but are reluctant to use software to help with this, it could be that you’re being put off by one of the many myths surrounding it.

 

Four Contract Management Software Myths and their Realities

Four common myths are surrounding the use of contract management software.

  1. It is too expensive.
  2. It can slow down staff who are used to manual processes.
  3. It’s difficult for staff to learn to use.
  4. It’s only necessary for businesses who deal with lots of different contracts.

Of course, the reality is very different, as shown below.

Myth #1. Contract Management Software is too Expensive

With the advancement of technology, more and more businesses require software to help with an ever-growing list of processes and tasks and to keep ahead of their competitors. Yet getting approval of budgets for such a solution can be challenging at the least. The common belief is that that significant costs are incurred to purchase contract management software and to make it viable. Because of this, many companies don’t even bother searching. However, the truth is that systems are available to suit virtually any budget. In fact, by doing a little research, you’ll see there are hundreds of different solutions out there. In other words, you should be able to find contract management software that suits your needs without blowing your budget. Software features vary from product to product, so people can choose only the functionality they need. More significantly an effective “Return on Investment” should be assessed and analyzed and this is the topic for a future discussion.

Myth #2. Contract Management Software Makes the Process Slower

Many businesses are of the belief that the time needed for their staff to learn to use and adjust to a new system would negatively impact their company. However, in the long term, the benefits of using a contract management system far outweigh any initial concerns. Existing tools that are already working well can be retained, allowing teams to realise the value of such a solution. Once the system is fully implemented and staff are trained to a suitable level, the efficiency gained is of huge benefit to your business and offset any early issues.

Myth #3. Contract Management Software is too Complicated to Use

For people actually researching contract management software, a common concern is that the solution will simply be too difficult to use by staff in the organisation. Some staff have bad experiences in adjusting to contract management software or may be put off using it, perceiving it to be too much of a learning curve or feeling they lack the right knowledge or experience to be successful with it. This may be true for some systems, but not all of them. In fact, ease of use does vary significantly from one solution to the next. One of the best ways to find software that is easy to use is to ask others about their experiences with it. It would be worth investing in a free trial or demo, to allow you and your team to see whether it’s suitable for your business. Review sites are also useful for evaluating the benefits and drawbacks of specific contract management software.

Myth #4. Contract Management Software is Only for Organisations Dealing with a High Volume of Contracts

It’s commonly perceived that contract management software is only useful for businesses that deal with high volumes of agreements. The truth is that this is only one reason for an organisation to use contract management software. While contract management software does make it easier to organise, store and monitor a high volume of contracts, it’s also perfect for dealing with both high value and high-risk contracts. If not appropriately managed, a business can be negatively affected by the consequences. Indeed, some degree of risk is always associated with manually managing contracts, which is why contract management software should be strongly considered as a mitigating solution.

Why You Should Ditch the Myths and Use Contract Management Software

Some contract management software is costly. However, there are hundreds of options out there, many of which are budget-friendly and only contain the features you need.

Members of staff may think that it’s quicker to continue with manual processes. In reality, contract management software speeds up the process, whilst retaining any successful current processes, resulting in maximum efficiency. This enables staff to have at least some level of familiarity in a new system.

Sometimes, staff are against contract management software, thinking it’s too complicated to learn. The truth is that many systems available are user friendly and relatively easy to both learn to use and are designed to work seamlessly with existing IT infrastructure.

Even if you are a company with a small amount of contracts to manage, implementing contract management software can improve productivity and minimise risks, improving the management of your business.