Electronic signatures, or e-signatures, are a digital equivalent of a handwritten signature and are used to confirm the authenticity of electronic documents and agreements. 

E-signatures can come in various forms, including:

◼️Typed Signatures: Typing your name into a designated field.

◼️Drawn Signatures: Using a mouse, stylus, or touch screen to draw your signature.

◼️Image Signatures: Uploading an image of your handwritten signature.

◼️Digital Certificates: Using encryption technology to create a unique digital signature tied to the document and signer's identity.

E-signatures are legally binding in many jurisdictions, provided they meet specific requirements such as consent to use the signature, intent to sign, and a clear link between the signature and the signed document. 

E-signatures offer a convenient and secure way to execute agreements and record approvals without the need for physical paperwork.

The E-Signatures station is considered a Repeater resource within the GLS Legal Operations model.

A Foundational Resource: Is responsible for determining the overall performance capabilities of a “critical” legal function. If it is not optimised, the function can never be optimised. 

A Repeater Resource: Supports the performance of multiple "critical" legal functions and as such represents a "ripple effect" productivity intervention point. 

A Specialist Resource: Is responsible for driving the performance of a very specific part of an individual legal function. Its productivity contribution is limited to that single legal function. 

When implementing e-signatures, there are several best practices to consider to ensure the process is secure, efficient and user-friendly. The best practice features of e-signatures are as follows: 

◼️Authentication: multifactor authentication (MFA) ensures that signers are properly verified using multiple methods

◼️Identity Verification: includes options like knowledge-based authentication (KBA), SMS/email codes or biometric verification

◼️Audit Trails: logs to track every action taken on a document, including timestamps of when the document was opened, signed and executed

◼️Tamper-Evident: ensure that any changes to the document after signing are detectable

◼️Adherence to Legal Standards: compliance with regulations and local law execution requirements

◼️Legally Enforceable: ensure the e-signature is compliant and has legal standing (same as wet ink)

◼️Template Creation: enables and facilitates the use of templates for frequently used scenarios

◼️Integration: compatible with systems like cloud storage, CLMS, and document management solutions

◼️Secure: encrypts documents and signature to protect against unauthorised access

◼️Storage: signed documents must be stored securely and accessible only by authorised users

◼️Automation Enabling: notifies signers and senders of pending actions and document status updates

◼️Sequential and Parallel: supports different signing workflows depending on the process requirements

◼️Customisable: allows customisation of interface to support brand logos and house style

E-signatures deliver the following value to the Business: 

◼️Faster execution: e-signatures streamline document workflows, reducing time to execute

◼️Reduced Admin: e-sigs automate tasks like document routing, reminders and tracking

◼️Cost Saving: helps eliminate printing, mailing and paper costs, and costs of document storage

◼️Reduce Errors: minimises handling errors, including wrong or missed signatures

◼️Improve Security: can use encryption and authentication to ensure only authorised users receive and sign

◼️Audit Trails: provides detailed log of who accessed and executed documents (and when)

◼️Improved Compliance: ensures contracts are legally binding and enforceable, and executed with proper authority

◼️Supplier Relations: improve customer and supplier relationships by making it easier for third parties to do business with your organisation

◼️Convenience: permits you and your counterparties to sign agreements from anywhere you can get online

◼️Reduce contract closure time: less time to sign means more time performing and revenue generating

◼️Environment: reduces paper and other consumables associated with manual execution processes (zero carbon footprint for document execution handling)

◼️Scalable: easily process large volumes of documents – ideal for procurement or volume supply scenarios. Eminently scalable (unlike manual signatures)

◼️Real-time Tracking: offers real-time updates on document status allowing easy progress monitoring

◼️Reporting: allows data-based insights to be collected around document signing, document flow and other document handling metrics allowing even greater efficiencies to emerge

◼️Competitive Advantage: demonstrates a commitment to efficient business practices, and permits faster customer on-boarding / supply chain efficiencies.

◼️Agility: enables faster execution and contract fulfilment – a more agile approach to business

E-signatures enhance the efficiency, compliance, and overall effectiveness of legal departments. Some specific examples of the value delivered for the Legal Department include:

◼️Enhanced Compliance: ensures contracts and other company documents are properly signed and enforceable, with a digital identifier – critical for providing compliance and addressing disputes

◼️Audit Trails: provides a comprehensive log of document interactions, including timestamps

◼️Improved Efficiency: speeds up contract management and approval workflows

◼️Streamlined Processes: eliminates the need for physical document handling, mailing, and signing

◼️Automated Workflows: enables automation of approval and execution process using less resources

◼️Reduce cost: lowers costs associated with printing, mailing, and storing physical documents

◼️Decreases Litigation Risks: minimizes errors and omissions related to manual document handling

◼️Enhanced Security and Confidentiality: encryption and secure authentication methods protect document integrity

◼️Centralized Storage: allows for easy digital storage of signed documents, making it easier to organize, retrieve, and manage documents

◼️Reduced Execution Time: enabling quicker execution of documents and agreements (less cost)

◼️Global Accessibility: documents can be signed from your handphone anywhere

◼️Real-Time Tracking: helps in managing and prioritizing tasks relating to execution and approvals

◼️Reporting: immediate access to document status and execution activity reporting, assisting in workflow tracking and meeting deadlines

◼️Collaboration: easy collaboration between internal teams and external parties

◼️Version Control: ensures document integrity and correct execution of only final form documents

◼️Error Reduction: minimizes the risk of missed or unauthorised signatures on wrong documents

◼️Agility: enables faster execution and contract fulfilment – a more agile and responsive function

◼️Scalability: easily scalable solution to support increased workflows without additional resource requirement

◼️Remote Capabilities: supports remote working arrangements

E-signatures are essential for:

◼️All Businesses: every business benefits from faster and simpler document execution processes

◼️Legal Operations Teams: expedite the compliant execution of documents and supports robust document management procedures

◼️In-House Counsels: reduced administrative burden means more time supporting more strategic initiatives

◼️Compliance Officers: e-signatures support robust and easily auditable document management and execution

◼️Senior Management: significantly reduces the time cost and administration of approval and execution process – and can be done from anywhere in the World.

A legal team operating without implementing e-signatures will face a wide range of inefficiencies including:

◼️Slower Execution: paper-based signing processes are slow and need more time/resource to complete

◼️Administrative Bottlenecks: manual execution can create internal/external bottlenecks 

◼️Higher Costs: printing, paper, ink, courier charges all cost budget – e-signatures eliminate this

◼️Storage: hard copy documents need storing, costing time and money to implement and manage

◼️Increased Errors: dealing with errors such as missing/wrong signatures or incorrect dates

◼️Document Loss: physical documents can be lost, or damaged, causing delays and duplicate effort

◼️Manual Follow-ups: manual intervention and tracking/monitoring costs valuable time and resources

◼️Coordination Challenges: coordinating signatures takes time and resources – eliminated with e-sigs 

◼️Reduced productivity: more time managing administrative tasks means less time being strategic  

◼️Increased document risk: hard copy documents are more susceptible to loss, damage or unauthorized access

◼️Compliance Challenges: not embracing e-sigs denies a fundamental compliance monitoring opportunity to emerge

◼️Limited Scalability: manual document execution is resource intensive and not scalable (more docs requires more time and people to manage)

◼️Resource Strain: valuable legal resources are consumed managing what can be a digitise process

◼️Inconvenience: traditional signing processes are slow and cumbersome

◼️Perception and Performance: a legal dept that has championed e-signatures improves the overall perception and performance of the team in delivering better, faster, cheaper and safer

◼️Environmental: e-signatures eliminates paper waste and carbon footprint associated with transporting docs

◼️Integration: your e-signature solution should integrate into your existing IT infrastructure, including CRM, ERP, DMS systems (if available and present) to improve overall operating efficiency

◼️Compatibility: e-sig solutions must be cross-compatible across different devices and operating systems to accommodate different counterparty IT ecosystems

◼️User Experience: the easier it is to use, the higher/faster the adoption will be. The more intuitive the system – the better

◼️Training: training is a tool to reduce user resistance and to improve overall adoption and use – crucial for successful implementation. 

Visit each Station on this Line for in-depth analysis of what it takes to make this in-house function really perform. Or you can go back to the overall GLS Legal Transformation Tube Map. 

In most cases, the GLS Legal Operations Centre contains everything you need to effectively optimise this key function yourself – or feel free to reach out to us – and we can help you.