Skip to main content Skip to footer

Legal Process Outsourcing

Best practices for deploying a CLM system across your organisation

Contract Lifecycle Management (CLM) is a comprehensive system that manages the creation, negotiation, approval, execution, and renewal of contracts across their entire lifecycle, serving as a central repository or a single source of truth and a collaborative platform for stakeholders.

Research by a top management consulting company found that 85% of organisations surveyed say that existing contract lifecycle management processes are slow and time-consuming at the process and strategic levels. To resolve these issues, they need a CLM system for contract digitisation, which is the priority of 76% of the organisation.

The same research found that 50% of all CLM implementations fail due to a lack of a strategic roadmap.

This article discusses the CLM implementation best practices to ensure long-term success.


Best practices for deploying a CLM in an organisation

Contract management forms the foundation of nurturing relationships with vendors, partners, and customers. The following CLM best practices reduce inefficiencies and errors and help growing businesses gain a competitive advantage:


Study the current CLM process

Analyse the current CLM process to identify inefficiencies and bottlenecks that impact compliance and productivity. For example, legal language that does not comply with the standards may be one of the reasons for contract execution delays. Such analysis sets a baseline for measuring the CLM system’s ROI.


Define the scope and objectives of a CLM system

Understand the end goal that you want to achieve with a CLM, define its scope and objectives, and align them with the long-term business goals. Decide the level of complexity you want in the CLM system. Do you want a repository or a system with workflow automation, analytics, enhanced visibility, process streamlining, and compliance?


Onboard the stakeholders

Working collaboratively with the consent of different stakeholders, including internal senior management and external partners, is crucial for the project’s success. Start by building a solid business case to get a buy-in from company leadership and system users. This includes analysing the difference between the current and new processes. Set the expectations and manage any resistance to change.


Form a CLM implementation team

A cross-functional team that includes stakeholders from all departments that directly handle contracts is essential. These teams could be legal, IT, sales, and procurement. Invite their feedback and expertise to ensure that the new CLM system meets the needs of all its potential users.


Select the right CLM software

Improve Contract Efficiency and Collaboration

Improve Contract Efficiency and Collaboration

There is no one-size-fits-all solution, which is why the software you choose must align with your company’s specific needs that you figured out in previous steps. Some of the must-have features include approval workflows, reporting, auto-redlining, and future scalability.


Implement the detailed implementation plan

The implementation plan will also depend on the nature, size, and complexity of your business. You may want to define precise milestones and responsibilities and implement the system in phases. A plan ensures that every stakeholder is on the same page and can manage any unforeseen risks better.


Migrate data between old and new systems

The new system should provide simple and clear instructions on migrating the existing contracts. It should be capable of addressing issues like data format compatibility, potential loss of metadata, and the handling of legacy systems. Ensure that the CLM system partner has a support team available to help you with this.


Train the stakeholders

The stakeholder training must start before the phased CLM implementation begins. The third-party supplier must provide a training plan for your team, from basic navigation to advanced features. Comprehensive in-house training by internal or external trainers, user manuals, and self-service videos ensures higher and quicker user adoption.


Test the system and rollout in phases

Create a mock workflow that mirrors the live systems and test the new CLM system with business-specific use cases for any faults before full-scale deployment. At each step, ensure that the critical functionalities are working, data integrity, and connection with other systems in the ecosystem. Unless the complete system migration happens successfully, your existing CLM process must remain functional should you need to roll back at any point.


Monitor, measure, and optimise the CLM system

Once the CLM system is live, then begins the journey of measuring success and optimisation. Use robust metrics to track system performance, user adoption, and desired outcomes.


How can Infosys BPM help with CLM implementation?

The Infosys BPM next-generation contract lifecycle management supports all organisational contracts, including sell-side, buy-side, and legal terms. The system makes it easy to execute contracts, search the repository, and work in a collaborative environment.

Read more about  CLM software at Infosys BPM.


Recent Posts