When legal and sales teams work together, they can close deals faster and more efficiently.  Misalignment causes delays, inefficiencies, and missed opportunities. You need both teams to work together to drive success.

For instance, TechCorp, a technology solutions provider, faced inefficiencies due to silos between their legal and sales teams. 

So how do you work with sales teams? By leveraging contract analytics.

Contract analytics helps bridge this gap by providing detailed insights into contract processes. It allows you to track key metrics, optimize workflows, and make data-driven decisions. With these insights, you can accelerate business outcomes and showcase the value of your legal team

Why should legal and sales teams be aligned?

Legal teams ensure compliance and mitigate risks, while sales teams focus on closing deals quickly. When both teams understand and support each other’s goals, the business thrives. But when they don't, it can lead to serious issues.

Common misalignments between legal and sales teams often arise due to differing priorities and communication gaps. These misalignments can significantly impact business outcomes:

• Delays in contract approval: Sales teams push for speed to meet targets, while legal teams prioritize thorough reviews to avoid risks. This can lead to bottlenecks and frustration

• Increased risks: Rushed contracts can overlook critical legal risks, leading to potential liabilities. For instance, poorly reviewed contracts can result in compliance issues or unfavorable terms that hurt the company financially

Also read: Effective Contract Risk Management: Top Tips & Strategies

• Inefficiencies: Poor communication and lack of standardized procedures result in wasted time and resources. Misaligned processes can lead to repeated work, confusion over responsibilities, and ultimately, a slower deal-making process

Also read: How to enable collaboration between legal and business

How contract analytics brings legal and sales teams together

Contract analytics involves using data-driven tools to analyze contracts throughout their lifecycle. This includes extracting key data points, assessing contract performance, and identifying trends to optimize contract management. Technologies like AI and machine learning power these tools, offering deep insights into contract content and workflows.

Contract analytics is essential because it:

• Provides a clear view of contract processes, making tracking and management easier
• Identifies potential risks early, allowing for proactive measures
• Streamlines the creation, review, and approval of contracts, saving time and resources
• Empowers teams with actionable insights

Contract analytics acts as a bridge between legal and sales teams by addressing common misalignment issues and promoting collaboration:

#1 Automating processes to speed up deals

By automating and standardizing workflows, contract analytics reduces delays caused by manual reviews and approvals. This ensures sales teams can close deals faster while staying compliant.

#2 Enhancing visibility with real-time data

Contract analytics offers real-time visibility into contract statuses and performance. Both legal and sales teams can access this data, fostering better communication and understanding of each team’s priorities and challenges.

Also read: Managing Contract Performance: Tips + Tools for Success

#3 Identifying and fixing process delays

Contract analytics tools can pinpoint where delays occur in the contract lifecycle, allowing teams to address inefficiencies and streamline processes. For example, after implementing contract management software, many companies see significant reductions in review times.

#4 Improving teamwork through shared data

With shared access to analytics data, legal and sales teams can work together more effectively. This joint effort helps align their goals and strategies, ultimately leading to better business outcomes.

#5 Proactively addressing risks

”You can either be part of the cleanup crew or do stuff to avoid that cleanup situation altogether."

 ~ Gitanjali Faleiro, GC, Company Secretary & CCO at Greenhill & Co.
Navigating the C-Suite as a GC

By identifying potential risks early, contract analytics enables legal teams to address concerns proactively, preventing costly errors and disputes. Effective contract management saves organizations substantial resources and enhances overall business performance.

Techniques for aligning legal and sales objectives

#1 Maintaining regular communication and meetings

• Frequent touchpoints: Schedule regular meetings between legal and sales teams to discuss ongoing projects, potential issues, and upcoming priorities. This keeps both sides updated and helps in addressing concerns promptly.
• Open channels: Maintain open lines of communication through tools like Slack or Microsoft Teams, allowing for quick exchanges and clarifications as needed.

#2 Establishing shared goals and KPIs

• Define common objectives: Establish goals that are shared by both teams, such as reducing contract turnaround time or increasing the number of successfully negotiated deals.
• Track performance: Use Key Performance Indicators (KPIs) that reflect the contributions of both legal and sales. Examples include contract cycle time, the number of contracts executed, and compliance rates.
• Align incentives: Ensure that the incentive structures of both teams support collaboration rather than competition. This can include joint performance bonuses based on shared KPIs.

Also read: 4 Crucial Contract Management KPIs to Track for Legal Success

#3 Utilizing collaborative tools and platforms

• Use integrated platforms: Employ contract lifecycle management (CLM) tools that both teams can access. These platforms provide a central repository for all contract-related information and streamline the review and approval processes.
• Shared dashboards: Implement shared dashboards where both legal and sales teams can monitor contract statuses, track progress, and identify bottlenecks.
• Document collaboration: Utilize tools like Google Docs or Microsoft Office 365 for real-time document collaboration, allowing both teams to work on contract drafts simultaneously and incorporate feedback efficiently.

Also read: Collaborating on Contracts with DraftMate

#4 Implementing alignment techniques

• Create a collaborative culture: Foster a culture of mutual respect and understanding. Encourage team-building activities and cross-departmental training to help each team appreciate the other's challenges and contributions.
• Feedback loops: Establish regular feedback sessions where both teams can share what’s working and what needs improvement. This helps in continuously refining processes and improving collaboration.
• Leadership support: Ensure that the leadership of both departments is committed to these alignment strategies. Their support is crucial in setting the tone and prioritizing collaboration across the organization.

Key metrics and reports for legal and sales teams

To ensure both sales and legal teams work efficiently and in harmony, it's crucial to track key metrics and generate reports that provide actionable insights. Here are the main metrics and the types of reports that can help align these teams:

#1 Measuring turnaround times

Turnaround time measures the total duration from the start of a contract to its final approval. By tracking this metric, you can spot delays and streamline the process. Faster turnaround times lead to quicker deal closures and happier clients. Identifying where delays occur helps both legal and sales teams address these issues promptly.

Also read: 4 Contract Management Performance Metrics to Measure Success

#2 Tracking contract revisions

The number of revisions a contract goes through can reveal inefficiencies in the drafting process. Frequent revisions slow down the process and indicate potential misalignment between legal and sales teams. Monitoring this metric helps identify common points of contention, allowing you to refine templates and communication strategies, speeding up negotiations.

Also read: How to Review a Contract Faster and More Efficiently

#3 Monitoring approval times

Approval time is the period from when a contract is submitted for approval to when it is finalized. Faster approval times mean quicker deal closures and better client satisfaction. If approval times are long, it highlights bottlenecks or resource constraints that need fixing. This metric ensures both legal and sales teams streamline the approval process.

Also read: Tips & Tricks to Create an Approval Process Workflow

#4 Reducing execution times

Execution time refers to the period from final approval to contract signing. Efficient execution times are crucial for maintaining deal momentum. Delays in this phase can cause frustration and slow down the overall process. Tracking execution times ensures final steps, like obtaining signatures, are handled swiftly, keeping everything on track.

Also read: Contract Execution Process: The Ultimate Guide

#5 Ensuring SLA compliance

Compliance with Service Level Agreements (SLAs) ensures contracts meet agreed standards and timelines. This is important for both legal teams, who focus on contractual obligations, and sales teams, who aim to deliver on client promises. Tracking SLA compliance helps maintain high standards and fulfil commitments, boosting client trust and satisfaction.

Benefits of using contract analytics

#1 Data-driven decision-making

Contract analytics enables both sales and legal teams to make decisions based on solid data rather than assumptions. By analyzing contract data, teams can identify trends and patterns that would otherwise go unnoticed.

For example, sales teams can see which contract terms lead to quicker deal closures, while legal teams can spot clauses that frequently cause disputes. This insight allows both teams to act with confidence and strategically shape their decisions, leading to smoother negotiations and more effective contracts.

#2 Improved forecasting and resource management

Using contract analytics significantly enhances the ability of both sales and legal teams to forecast outcomes accurately. By examining historical data from previous contracts, sales teams can predict the success of similar deals in the future, while legal teams can anticipate potential legal risks.

This predictive capability ensures that resources are directed where they are most needed, improving overall efficiency. Sales teams can focus on high-potential deals, and legal teams can prepare for potential challenges in advance. This level of foresight and preparation is crucial for maintaining smooth operations and achieving strategic goals.

#3 Enhanced transparency and accountability

Contract analytics ensures that all contract-related information is easily accessible and transparent to both sales and legal teams. This transparency is crucial for ensuring that everyone involved is on the same page, reducing misunderstandings and miscommunications. 

Sales teams can monitor deal progress, while legal teams can ensure that contractual obligations are being met. This level of oversight fosters a culture of accountability and reliability, enhancing the overall trust and collaboration between sales and legal teams.

How SpotDraft's contract analytics enhances legal and sales collaboration

#1 Centralized contract repository

• Access and visibility: Both legal and sales teams can access all contracts from a single, centralized repository, ensuring everyone is on the same page
• Version control: Track changes and maintain version control, so teams can see the history of modifications and ensure they are working on the latest version

Also read: Organize your contracts in a searchable repository

#2 Automated workflows

• Approval processes: Automated workflows can streamline the approval process, ensuring contracts move swiftly from one stage to the next without manual intervention
• Notifications and reminders: Automated alerts and reminders keep both teams informed about pending actions, deadlines, and contract renewals

#3 Analytics and reporting

• Performance metrics: Track contract performance metrics such as turnaround time, approval times, and compliance rates, helping identify bottlenecks and areas for improvement
• Risk analysis: Analyze contract clauses to identify potential risks, ensuring both teams are aware of and can mitigate any legal or business risks

#4 Collaboration tools

• Comments and annotations: Legal and sales teams can leave comments and annotations on contracts, facilitating direct communication and collaboration within the document
• Task assignments: Assign tasks to specific team members, ensuring clear responsibilities and accountability

By leveraging SpotDraft's Contract Analytics, you can significantly improve how your legal and sales teams collaborate, streamline contract workflows, and enhance overall efficiency.

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