Considerations for a successful CLM implementation

Whether you’re looking to switch Contract Lifecycle Management (CLM) providers, or maybe you are at the start of your CLM journey, an integral part of your CLM success will depend on your implementation.

CLM implementation is a process that requires strategic foresight and careful execution. From understanding how your chosen CLM provider executes your implementation plan, to making sure your entire business is prepared.

Read on to learn how to avoid common CLM implementation pitfalls and gather expert tips for a successful contract management rollout.
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What is Contract Lifecycle Management?

Firstly, let’s think back to what Contract Lifecycle Management involves.

Contract Lifecycle Management (CLM) is a process that manages all stages of a contract throughout its lifecycle. All the way from creation to renewal, to maximise compliance and opportunity while minimising the associated risk.

Implementing a robust CLM strategy can greatly benefit businesses by improving efficiency, reducing legal and financial risks and accelerating business revenue.
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The benefits of implementing a CLM

CLM implementation is no easy job! Like any tech implementation, it requires time, planning and budget. However, implementing a CLM system offers organisations multiple opportunities and benefits, making it a strategic asset for efficient operations.

As we guide businesses through the implementation stage of their CLM journey, it’s always rewarding to see their surprise as they uncover the untapped potential of their CLM — often exceeding their original expectations. Even though we primarily collaborate with legal during this implementation phase, the team can often already start to see the business-wide impact and benefits that their CLM will create.

‍Linda Daniel, Head of Implementation at Summize.

Explore the four most common benefits that come with implementing a CLM.

1. Improved compliance: CLM tools improve compliance by ensuring contracts adhere to legal and regulatory requirements. The best CLMs automate compliance tracking, providing alerts for critical dates as well as helping to maintain audit trails.
2. Faster and improved revenue generation: CLM software accelerates revenue growth by shortening the contract process, reducing sales time and optimising contract terms.
3. Rich data: CLM software unlocks hidden data, enabling stakeholders to identify patterns, risks and opportunities, allowing them to make business decisions based on insights.
4. Enhanced business efficiency: CLM tools streamline contract lifecycles, reduce manual tasks and centralise data. All benefits which help businesses minimise errors and enhance business efficiency.

Take a look at even more Contract Lifecycle Management benefits.
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Why CLM implementations fail

Even with the rise in CLM adoption Artificial Lawyer found that 77% of CLM projects fail in the implementation stage. CLMs are not plug-and-play systems. They require internal buy-in, full business adoption and a thorough implementation strategy.

However, if you understand and address the potential challenges before your implementation begins, you will be more equipped to avoid the common pitfalls. Explore the three most common implementation challenges:

1. Resistance to change: Your colleagues may resist new contract management technology, preferring familiar methods. If this is the case, choose a CLM provider that can integrate automated and efficient contract processes into your existing business tools. Summize’s CLM allows your team to keep working in familiar tools such as Outlook, Teams, HubSpot and Slack, while automated CLM workflows integrate smoothly in the background.
2. Complexity: Contract management is often complex, especially in businesses with intricate processes or varied contract types. Working with a leading CLM provider will give you confidence that they will take the time to understand your use cases and help you prioritise your best outcomes.
3. Lack of use case: Clear use cases help identify where your CLM can improve efficiency. Without defined use cases, project goals can become unclear, leading to stakeholder confusion and collaboration issues. To avoid this challenge, work with your CLM provider to explore and prioritise your use cases, enabling your company to start seeing CLM benefits even quicker.
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How to implement a CLM system

Now you’re aware of the common challenges and how to avoid them, you can focus on the core elements that make a successful CLM implementation strategy.

Understand which teams to involve

Contracts touch every part of the business and so should a CLM. To ensure your CLM is used to the best of its ability, it’s important to get your whole business involved in the contract management process. But who should you involve? Map out your current contract workflows to identify which teams touch each stage of the contract lifecycle.

Secure cross-department buy-in

Once you have identified the teams, identify the problems in your business that have led you to look for a CLM. This part of the implementation process will help you explain to your stakeholders what contract problems exist and what can be done to overcome them.

Define success

Have a vision! Every business has its own unique set of challenges, so success is unique. Ask your business, “What’s the goal of implementing a CLM and how will we measure and track its effectiveness?”

Be prepared!

Map out your existing end-to-end processes and detail where the inefficiencies occur. Then, map out the most efficient journey that a contract could take. Once complete, you can define the milestones needed to measure the success of your CLM’s implementation.

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Choosing your CLM provider

Implementation factors to consider

Now you’re aware of the common implementation pitfalls to avoid and the tips for an internally smooth project, your next step is choosing your Contract Lifecycle Management (CLM) provider.

No CLM provider is the same, therefore it's essential to thoroughly understand their implementation strategy. Consider asking questions such as:

• Will your provider help you put together your contract use cases and your overall contract goals?
• Do they take a sprint-based approach to get you up and running sooner, or do they implement all stages at once over a longer period?
• Will you have a dedicated Implementation Manager from start to finish?
• What level of support will you receive after your implementation is complete?
• Do they provide ongoing training for non-legal users or new business starters?
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The implementation approach is an integral part of your overall CLM success, therefore choosing a provider who can make the process as seamless as possible is key.
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Other CLM factors to consider

Apart from ensuring a successful implementation journey, there are other factors you should consider when choosing your CLM software:

• Integrations: Does the CLM integrate into your existing tech stack to allows non-legal users to create contracts, submit documents, resolve issues, and receive self-guidance in your existing tools (e.g. Teams, Outlook or Slack)?
• Rich data: A CLM tool should unlock hidden data from across the end-to-end lifecycle, allowing you to identify inefficiencies, generate reports and enhance your decision-making process.
• Central repository: A leading CLM system will offer a central repository where you can easily search and filter through your contracts to find specific clauses, terms and dates.
• Audit trail: Does the CLM tool provide a full audit trail of key contract actions and events, providing visibility into who, what and when for compliance?
• Artificial intelligence (AI): Does your chosen CLM utilise AI across the contract lifecycle to automatically extract summaries, to redline your contracts and to help you spot insights and trends?
• Easy-to-read summaries: Does the CLM offer natural language summaries that provide internal users with easy-to-read summaries that are more natural and richer?
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Summize’s expert advice for CLM implementation

At Summize, our implementation approach is a large part of the success of our leading CLM software. We support you throughout your entire CLM journey, from the initial purchasing decision through to implementation and rollout, with continued support and success after.

Summize's implementation is just so easy, you can't get a better return on your investment. I can't say that enough.

Leah Samia, VP of Sales Operations at Ikon Science.

Our experienced Implementation Team works with you to establish your current processes, use cases, what success looks like and where Summize will best fit into your day-to-day workflows. We will then help you prioritise your contract use cases and highlight your biggest needs so that you can start seeing your CLM benefits in as little as four weeks.

To find out more about our unique approach to implementation book a demo with our contract experts today. We’ll listen to your current contract challenges and demonstrate where Summize can provide ultimate value.