Problems With Conventional Approval Workflows:
Legal teams often grapple with such significant challenges that this workflow effectively addresses:
1. Balancing Business Agility with Risk Mitigation
2. Lack of Business Accountability for Accepted Risks
3. Inconsistent Risk Acceptance & Decision-Making
4. Difficulty in Tracking and Learning from Past Risk Decisions
5. Lack of Transparency and Alignment with Business Goals
6. Manual and Time-Consuming Documentation of Risk Decisions
Streamline Clause Approvals with the CLM Deviation Workflow
Contract deviations often require approvals from multiple stakeholders, making the process time-consuming and complex. The Deviation Workflow feature in Legistify CLM makes clause-level approvals simple, organized, and transparent—right from within your MS Word drafting environment.
This step-by-step guide will walk you through the entire clause approval process, from setup to final approval and reporting.
Key Benefits at a Glance
Configure multi-level clause approvals (L1 → L2 → L3)
Start workflows directly from MS Word via the Legistify’s Add-in
Set auto and manual reminders for approvers
Track the full approval trail with timestamps and user IDs
Download approval matrices and summaries after final approval
Step-by-Step Deviation Workflow Guide
Step 1: Add Clauses for Approval
Legal users initiate the approval process by selecting a clause from the contract draft in MS Word using the Legistify Add-in.
Copy and Paste Clause: Highlight the relevant clause and paste it into the workflow form.
AI-Generated Summary: The system auto-generates a summary of the clause for context (editable).
Implication of Deviation: Add notes on the legal/business impact of this clause.
Add Approval Levels (L1, L2, L3):
Select approvers for each level from a dropdown list of organization users
Approvers are not required to be contract followers..
Add multiple approvers at each level if needed.
Set Reminders:
Auto Reminders: Define the frequency (e.g., every 3 days) to nudge approvers.
Manual Reminders: Can also be sent anytime by clause creators or contract owners.
✅ Note: Clauses can be added by multiple legal users to the same contract, and each clause can have its own approval flow.
Step 2: Start the Clause Approval Workflow
Once clauses and approvers are added:
Click the “Start Approval Workflow” button from the Word Add-in.
The workflow officially begins, and Level 1 (L1) approvers receive an email with a summary and a “Click Here for Pending Approvals” link to their dashboard.
Step 3: Sequential Clause Approvals (L1 → L2 → L3)
Legistify enforces strict sequential approval logic:
L1 must complete approval for all clauses before L2 is notified.
Similarly, L2 must complete their approvals before L3 is notified.
This ensures structured decision-making and control.
Each approver can:
Approve the clause (with optional comments)
Reject the clause (with a mandatory reason)
🛑 If a clause is rejected:
The clause creator is notified by email.
The legal user can edit the clause, update the summary or implication, and resubmit it for approval.
This resubmission follows the same sequential logic starting again from L1.
Step 4: Email Notifications & Reminders
One Email per Contract: Approvers receive a consolidated email summarising all deviations pending their action.
Click-to-Act Button: Approvers are redirected to their “My Pending Approvals” dashboard.
Recurring Auto Reminders: Sent based on configured frequency.
Escalation Matrix:
Every reminder email also goes to an escalation email ID.
The subject includes the reminder count (e.g., "2nd Reminder").
Step 5: Approver Dashboard – “My Pending Approvals”
Approvers get an email for clause approvals. By clicking on the link, they are redirected to “My Pending Approvals” page where they manage all their actions in one place:
View all contracts with pending clause approvals.
Drill down into each clause to read summaries and implications.
Approve or reject with comments.
See real-time approval trails, timestamps, and user IDs.
Access the latest draft version of the contract.
Step 6: Final Approval and Reporting
Once all clauses are approved by all assigned approvers across levels:
Legistify auto-generates a Clause Approval Matrix (Excel Sheet) including:
Clause details
Approvers per level
Approval decisions
Timestamps
This file is:
Downloadable from within the tool
Automatically sent during the e-signing process
📩 Recipients include:
Company signatories
CEO/Key stakeholders (L3)
Chief Risk Officer (view-only access)
Additionally:
An AI-generated Cover Sheet summarizing the deviation context is attached for easy reference.
🧾 Audit Trail & Visibility
Legistify ensures full traceability of all actions:
Approvals Tab: Visible to all contract followers.
MIS Timeline: Shows when requests were initiated, approved, rejected, or escalated.
Audit Logs: Every user action is timestamped with user identity for compliance.
🧮 Post-Approval Summary
After final approval (typically L3):
The Clause Approval Sheet is emailed to:
Legal Team
Contract Requestor
The sheet is also downloadable for external sharing or archiving.
✅ Summary
With Legistify’s CLM Deviation Workflow, your legal team can:
Manage clause-level approvals with transparency and efficiency
Maintain sequential control across multi-level approvers
Minimise email clutter through consolidated communication
Ensure compliance and audit readiness at every stage of the contract lifecycle