The 2021 EY Law Survey identified some key barriers that companies face when it comes to solving the problem of contract management inefficiencies resulting in lost business. The survey found 50% reporting this issue and that it was directly impacting their organization’s revenue growth. 

As we look at more figures that analyze how poor contract management directly correlates with lost revenue, we will also look at solutions to the problem. 

Legal teams are looking to cut overhead costs

A successful business must be mindful of its budget and continually work to reduce costs where needed. 

The 2021 EY Law Survey found that 53% of CEOs anticipate launching a significant cost reduction effort in the next 12 months, and 88% of General Counsel reported they are planning to reduce the overall cost of the legal function over the next three years. 

Smaller companies are looking for an average cost savings target of 14%, while larger companies are looking to achieve an average closer to 18%. This finding equates to law departments looking to save nearly one out of every five dollars they are currently spending. And to do this, companies must make significant changes in day-to-day operations. 

Poor contract management can hinder achieving these goals

For legal departments to successfully reach these goals, they understand that they will need to adopt tech tools for digitization and automation. 

The survey found that 59% view a greater use of technology as the best strategy as offering significant or very significant cost savings opportunities. However, only 50% reported that their organization had made moves towards such technological solutions. 

Moving too slowly towards the solutions a company needs will make it significantly more difficult for them to achieve their goals, primarily due to simple human error. 

A recent survey by SpringCM found that nearly ¾ of respondents reported impacts their contract management process either “often” or “very often.” Another 87% stated that these errors were causing deals to stall. 

That’s revenue lost. 

And it’s more than human error losing the company money. A firm must use its legal team’s time wisely. Findings from EY’s survey showed respondents reporting that 27% of total hours are spent conducting routine compliance and low-value tasks across the legal function. These lost hours take time away from lawyers being able to meet with clients, address needs, negotiate contracts, and procure new clients. 

That’s revenue lost.

Another 90% of business development leaders reported they “face challenges working with their procurement, law, and commercial teams on issues related to contracting, with 57% saying that inefficiencies in the contracting process slow revenue recognition.”

That’s revenue lost.

However, while operational managers may understand that automation is the answer, one big obstacle is challenging to overcome. 97% of General Counsel said they face challenges securing budget for investments in legal technology. 

So how does an organization solve the dilemma? How do you invest in automation to solve lost revenue without spending too much on the technology needed? 

Let Zendoc help

Zendoc is the AI-powered contract automation platform that won’t break the bank. We have three different pricing plans built to meet your specific company’s needs regardless of size. Our plans start as low as $49 per user per month. 

Yearly plans offer approximately a 17% discount. That’s two months free versus monthly plans. We also offer discounts for registered non-profits and accelerated or incubated start-ups as well.

With Zendoc integrated into your company’s platforms, you will be able to eliminate costly human errors, reduce risks, and increase efficiency, all while modernizing your data management. 

We also offer a 14-day free trial. Try Zendoc today, and let us bring the zen to your workplace. 

About Zendoc

Zendoc is a full-service AI-powered contract automation system that not only organizes all of your agreements into a single database but keeps you up-to-date on what you need to do to extract as much value from your contracts as possible. You don’t have to worry about forgetting your obligations because you don’t have to remember them in the first place. 

We offer a 14-day free trial demo so you can experience relief from the pain of managing your contracts. Try us today!