Document Management vs. Contract Management
Proper documentation is a central part of successful business management. Keeping track of paper documents gives decision-makers better oversight over operations and improves consumer confidence.
Document management has become a core focus of modern organizations. Using software and digital platforms to share vital information is a great way for leaders to ensure their teams are successful.
When businesses need to create, modify, and share important documents, they turn to document management to give clients, employees, and partners insight into their long-term operational strategies.
When individuals and teams don’t have the knowledge and support they need, it becomes difficult for them to achieve their end goals. Business leaders who want to effectively scale their organization use document management to seamlessly distribute important materials across teams.
Document management gives HR professionals and small business owners tools and software for organizing, distributing, and tracking their business documents. Invoices, legal agreements, bylaws, and contracts are just a few of the many different types of documents that can be better managed with the right systems in place.
For business leaders and working professionals who require added tools and software for managing their employee agreements, contract management makes it simple to keep track of important legal documents, signatures, and other contract-related information.
Contract management allows HR professionals and small business owners to keep track of their employee-related data. With integrated resources that allow decision-makers to save time and money when dealing with employee contracts, contract management is an essential tool for any modern business.
Document Management and Contract Management: Key Differences
While document management and contract management are both used for keeping track of important files and information, there are key areas in which they differ.
Document management generally offers simplified systems for organizing, sorting, and accessing important information. Contract management is better positioned for users who need oversight over their contracts, including related documents, signees, and important dates.
Document management alone often isn’t enough for businesses that want transparent data tracking and automated workflows. Contract management offers a wide range of benefits over simple document management systems that HR professionals and small business owners should be aware of:
Comprehensive Lifecycle Handling
For general oversight over important files, document management systems offer static storage and access so users can work with digital information in a centralized location. Contract lifecycle management (CLM) provides businesses with the ability to track and secure contracts from start to finish.
Pre-built contract templates make it easier for users to fulfill agreements while remaining compliant. With tools and software for tracking redlining, negotiating, making approvals, and finalizing the execution of contracts, contract management provides transformative models for handling contracts across their lifecycles.
Using CLM, teams are better equipped to meet targeted milestones and create contract renewals.
Detailed Analytics and Metrics
Businesses that rely on document management alone are unable to effectively leverage the information that they have available.
Document management systems have no way of discovering and communicating important events, metadata, or statistics to users. This lack makes it difficult for HR professionals to deal with real-time problems effectively.
CLM systems provide business leaders with vital statistics and metrics so they can make better decisions when creating and executing contracts.
Decision-makers who want to avoid potential liabilities can turn to CLM systems for better oversight and reduced risk. This approach can make all of the difference to businesses working with important contracts and user data.
Contracting for Everyone
One of the most important aspects of contract management is to track stated goals and metrics associated with specific agreements. When individuals have the flexibility to make decisions in real-time, it can drive progress and motivate individuals to act autonomously.
While document management systems offer better organization for everyday users, CLM systems are essential for allowing users who aren’t experts in the law to manage legal documents.
The use of automation for building templates and access to a centralized database for knowledge and support make it easier for anyone to create and distribute contracts. With CLM systems in place, legal professionals have more time to do what’s important.
Malbek Understands CLM
Are you a legal professional or small business owner who needs access to better tools for managing contract lifecycles? Malbek is a contract lifecycle management solution that empowers the whole business. Our CLM services offer:
- Oversight over lifecycles
- Data tracking
- Accessible tools and software
Malbek’s definitive intake and assessment process makes it easier for individuals in sales, legal, procurement, and finance to maximize the performance of their contract negotiations. From authoring to review and approval, Malbek is the solution that’s right for you.
Discover Malbek’s comprehensive lifecycle management solutions. Request a demo today!