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. 

The GLS Knowledge Centre has a wealth of resources available for learning more about the importance of e-signatures and other contract management efficiency tools - check out a few on the right.

The GLS Legal Operations Centre contains everything you need to effectively implement your own tailored E-Signatures in a cost-effective and timely manner. Check out the resources linked on the right. 

Also, feel free to contact GLS to book a consult to discuss your E-Signatures needs right here.