The Company
The Group is a leading financial institution with over 1,000 customers worldwide.
The Objectives
The Group wanted a contract management platform that was:
- Flexible enough to meet the requirements of its different business units in multiple countries
- Powerful enough to reduce the time it takes for contracts to get to signing
The Business Case
A global institutional client base with more than 5,000 contracts a year across multiple business units resulted in significant inefficiencies in the Group’s contracting process. Even straightforward contracts such as NDAs could take up to a month to finalize, causing delays that would result in lost sales and deferred revenue accruals.
The legal team also became overburdened with administrative work. They were no longer able to track the signing of their contracts or ensure that these contracts were compliant with their internal policies.
As a consequence, the senior management had no insight into the number of contracts being signed or which contracts were being signed. Even the retrieval of individual contracts or the drafting the contract terms would take a week’s time.
The Group decided that it was time to overhaul its contracting processes, so an RFP was launched in 2020 for the deployment of an end-to-end contract management platform that would improve contract turnaround times, reduce administrative work for the legal team, and provide improved contracting process visibility for the senior management.
The Solution
After six months of careful evaluation and thourough comparison between nine different solutions, the Group chose to implement Lexagle. 74 template contracts that were being used group-wide were digitized for auto-generation in the Lexagle platform including NDAs, customer agreements, and procurement agreements.
The Group was specifically impressed by the level of customization and configuration that could only be done within the Lexagle platform. This led to a bespoke experience that best reflected the Group’s current business practice while providing all the benefits of digitization and without the associated disruptions.
Lexagle’s project management and implementation team included former in-house counsels, sales managers, and procurement officers who assessed the Group’s contractual processes and proposed the right solutions that addressed not just the requirements of the Group’s legal team but also those of its business teams. The dedicated post-implementation support and training also ensured a smooth rollout leading to a post-implementation adoption rate of more than 90% on a groupwide basis.
The Results
- 400-500 contracts are now being processed monthly within the Group’s Lexagle platform, with more than 5,000 contracts processed in 2021.
- The Group’s contract lifecycle duration has been reduced by 40% on average across all contracts, with NDAs showing the sharpest lifecycle duration decline of 85% from a pre-Lexagle duration of 16 days to 2.5 days within the first two months of implementation.
- Lexagle’s ability to auto-generate standardized customer contract templates from the sales and business development teams has significantly reduced the legal team’s average time to prepare a customer contract from four days to 10 minutes.
- Lexagle’s reports and analytics which track, amongst others, the number of drafted and signed contracts, the total number of active contracts, the number of expiring contracts within a time period, and the average turnaround time for each contract, are now presented to the senior management at the end of every quarter.
- The estimated cost savings from Lexagle based on the reduction in the amount of administrative work associated with the contracting process is estimated to exceed USD 1 million annually.
