A two-part conversation on how companies can benefit from a contract lifecycle management (CLM) solution is featured in episodes 6 and 7 of our Legal Leaders Exchange podcast. In these episodes, Paul Branch, Chief Networking Officer of World Commerce & Contracting, and Lee Matthews, Associate Director of Product Management for ELM Solutions, discuss speed, value, and risk with respect to the contracting process, all with a focus on how CLM software can help you improve performance.
Managing the velocity of change
In Part 1 – CLM Success Factors: Managing the velocity of change, CLM experts Paul Branch and Lee Matthews provided tips about how to prepare for contract lifecycle management success. They began by discussing the impact that the pandemic has had on both the adoption of CLM tools and the ways they have helped companies navigate the difficulties that COVID caused within business operations and relationships. COVID accelerated many organizations’ adoption of better contracting processes and CLM technology, which is leading to improved results that will have benefits well into the future.
Many legal operations professionals ask where they should start. Data is the lifeblood of contracts, which makes it an excellent place for any legal organization to focus when beginning its contract management journey. It’s essential for all stakeholders across all functions to have visibility into correct, up-to-date contract information. A central contract repository is therefore a great way to begin building your contracting data and delivering improvements to colleagues.
Once you have built that foundation, don’t assume you should immediately jump to advanced analytics, data flows, and other sophisticated CLM tools. These are indeed valuable features that can help safeguard revenue and drive growth. However, implementing change too quickly can lead to additional problems. A well-planned and executed change management approach is essential to overcoming the organization’s natural cultural resistance.
Effective risk management
The conversation continues in Part 2 - CLM Success Factors: Effective risk management, where Paul and Lee go on to talk about some of the most common areas within contracting that introduce risk and how contract lifecycle management software can help. These include both pre-execution concerns – such as overpayment due to lack of data during negotiations – and post-execution issues, like poor visibility into contract obligations.
In addition, risk can be found – and should often be addressed – in both small, common occurrences, as well as bigger, more obvious problems. Effective risk management means responding to disasters and crises but also to day-to-day issues that could lead to bigger problems later if they are ignored or simply unnoticed. Proactive risk management is based on recognizing circumstances that have generated issues in the past and taking action before they do so again. CLM technology, including AI-powered tools, can provide this type of insight.
For much more on these topics and additional tips on getting the best value out of your contracting program, listen to these episodes – CLM Success Factors: Managing the velocity of change and CLM Success Factors: Effective risk management – on our website or in your favorite podcast app. If you are a podcast app user, be sure to follow our Legal Leaders Exchange show on your favorite app (Apple Podcast, Spotify, Google Podcast, Amazon / Audible.com, iHeart Radio), so you don’t miss any of our informative episodes.