Top Tips for a Successful Contract Lifecycle Management Roll Out
By David Parks
Vice President of Marketing | Contract Logix
Chief legal officers (CLOs), general counsel(GCs) and their in-house legal teams have dramatically accelerated their digital transformation initiatives since the start of the COVID-19 pandemic. In fact, according to a recent survey by World Commerce and Contracting, 81 percent of legal teams plan to implement, replace, or add to contract automation over the next twelve months. This has resulted in an explosion of contract lifecycle management (CLM) software adoption, but after the purchase decision has been made, how can organizations measure the success of CLM software implementation? What key performance indicators (KPIs) should they track? And how can they use CLM software to quickly deliver value to the business and demonstrate an ROI?
First, organizations need to be clearly focused on what the use cases and priorities of different user groups are. Are they concentrating on buy-side or sell-side contracting, vendor management, addressing pre-award issues such as approval bottlenecks, or something else? Is the organization trying to increase sales velocity, compliance, or perhaps trying to minimize risk of missed obligations? Whatever the challenge, the most successful CLM implementations are those that take small steps. Clearly documenting the business problem(s) that need to be solved and organizational priorities around them is key to success. After the organization defines requirements, it can then map measurements, KPIs, and timelines back to them.