How do you implement a CLM solution? 5 steps you can’t miss.

Contract Lifecycle Management (CLM) solutions transform the way your organisation  creates and manages key business documents. Implementing a CLM is known to help your business gain a competitive edge, enabling you to get more out of your agreements whilst ensuring you - and your counterparties - are always on top of contractual obligations. From creation and negotiation to signing and storage, a CLM takes you all the way.

Recognising the benefits of a CLM solution begins with a successful implementation. As a CLM provider that provides an end-to-end solution, we often have a dedicated customer success manager that will support our clients in onboarding and implementation. In this blog, we will cover five practical tips to guide you through the fundamentals of the process, without the jargon. 

1. Prioritise your goals

Contract Lifecycle Management (CLM) solutions are used across many industries, for many different reasons. Whilst an enterprise client might be sold on using a CLM to shorten their sales cycle, a real estate company may want to leverage the tool to improve compliance in commercial rental agreements. Teams should always ask:

• Which parts of the contracting process are slowing us down? Who are they key stakeholders?
• What challenges do we face when drafting and approving contracts?
• Where do mistakes or delays happen most often? Pre or post-signature?
• How do we collect and leverage contract data?

Make a simple list of these issues and decide which ones are the most important to fix first. This approach helps you choose a CLM solution that works well for your team without overwhelming them with unnecessary features.At the same time, it will help you focus your efforts on resolving the issues that are most transformative to your team. A high-level answer for the enterprise client looking to shorten their sales cycle might look as follows:‍

Which parts of the contracting process are slowing us down? Who are the key stakeholders?

1. We don’t actually have the data to know what parts of the contracting process are slowing us down. 
2. However, we lose a lot of time creating contracts from scratch with correct pricing and terms for each jurisdiction we sell into. Our legal and sales teams aren’t working optimally together to discuss this and each agreement has to be re-reviewed.
3. Also, it takes us a long time to get from draft to signature, because there’s lots of back and forth in negotiations. It becomes a mess to track. After weeks of negotiations, we’ve even signed the first draft on accident before! 
4. Post-acquisition, it takes a long time to find contracts, the AcqCo has used a completely different process, and some of the team has left. We’ve lost unnecessary time on integrations. 

This is, however, just the start. Ideally, the team can further distill each point down to a singular problem statement and named entities. We recommend getting familiar with the terms in our glossary, like the 6 stages of contract lifecycle management, or terms like version control. This will help you to think about contracting metrics within their appropriate framework.

‍What challenges do we face when drafting and approving contracts?

1. Drafting deals is currently a bespoke practice at our company. We don’t have dynamic templates we can grab off the shelf. Sales sits down with legal and re-review an old contract, updating its terms, before negotiating and re-re-reviewing.
2. Decision-makers don’t have access to the right data, because the information in our CRM doesn’t always coincide with that in Slack and that in the contract. Because of this, our attentive directors can almost never sign a contract when they are first presented with it.
3. We’d like for managers and budgetholders to approve before it gets to the signature stage, but we don’t know if that happens. 

Where do mistakes or delays happen most often? Pre or post-signature?

1. Pre-signature we lose a lot of time involving new stakeholders in the process and getting them up to speed on a) what has happened, and b) what needs to happen. That goes for both internal and external stakeholders. 
2. Post-signature our biggest problem is that we don’t know where they are! We often end up storing an older version of the contract. If we have a signed version in our folder system, it is a bonus!

How do we collect and leverage contract data?

1. We keep a vendor repository with key contract data about contract value and renewal terms. I think some teams use it!

From these examples it is obvious that there are some quick wins, whereas others require more structural changes. We recommend going for the quick wins and combining these with your highest priority long-term objectives. Want to know how we can help in more depth? Speak to an expert now!

2. Review and audit existing processes

Now that our goals are clear, we need to figure out how to measure and achieve them. This step will see us audit existing processes in far greater detail than the previous one. Write down the steps you follow, from drafting a contract, getting it approved, to storing it for future use. Look at questions such as:

• Who - at each stage - should be responsible; accountable, consulted, and informed?
• What systems do we use to share contracts with stakeholders? Where do we store them?
• What methods do we use for keeping track of important dates or changes? 
• How does this fit within our wider company strategy?
• What other workflows have dependencies on the contracting flow? How are they affected, and how can we improve on them?
• Where do problems typically occur? What are the obvious and hidden costs?

By mapping out your current process, you can see where the new system can make a real difference. This simple review will help you decide which features, like an online storage area or automatic reminders, will be most helpful.We’re familiar with taking inventory of existing processes and auditing them to understand how Docfield transforms the organisations we work with. We highly recommend you to read cases like that of Cegeka or Agilepoint!

‍3. Start with low-hanging fruit

Rather than trying to change everything at once, concentrate your effort on the low-hanging fruit first. This means: prioritise solving problems that disproportionately affect your business but do not require too much effort to solve. Some metrics to help you think about this are: how often do we run into this problem (volume), and how strong is the impact each time?

Based on what we’ve seen in the past, some low-hanging fruit is likely found here:

• Centralising your contracts: start by moving your contracts to one secure online location where everyone can easily find what they need. A single source of truth.
• Automate basic tasks: Start with simple tasks, like sending reminders for upcoming renewals 3 months ahead of the termination date.

Want tailored help from an expert at Docfield, or simply want to chat? Book a demo now!

4. Engage stakeholders early

Introducing a new system will affect multiple parts of your business, so it’s important to involve stakeholders from the start. This also includes involving the right stakeholders ahead of the purchasing decision. Usually teams will be divided in their support and resistance for new systems. Try to identify who you need to win over and leverage the excitement of supporters to do so. Explain how the new CLM solution will make daily tasks easier and invite feedback from people in various departments. 

Consider explaining the rationale behind the decision and the benefits (note: benefits to individuals, and the wider company) that you are expecting. Listen to concerns and welcome feedback. Give people a platform to ask questions and share feedback. Lastly, provide easy-to-follow guides or short training sessions to help your team get comfortable with the new system. Ask your CLM provider for help on this front, the best suppliers are always happy to help!

Open communication ensures that everyone feels part of the change and understands why it matters!

5. Use reporting features to your advantage

A good CLM solution will help you track improvements. Use this to your advantage. Look for features that let you track things like:

• How quickly contracts move from one stage to the next.
• Whether deadlines and important dates are being met.
• How much time is saved by using the new system.

These basic reports will show you whether the new system is making a positive difference. Plus, having clear numbers can help you decide if there are other areas that need more attention.

Conclusion

Switching to a new CLM solution can seem like a big change, but breaking it down into simple steps is what will make all the difference. Begin by focussing on what your business wants to achieve; then review your existing processes and implement the easiest fixes. By involving your team from the start and leveraging tangible reports from your CLM, you can preserve the momentum of your implementation, get everyone on-board and start seeing the transformations you signed up for.

Every business is different, and these tips offer but a general guide to get started. For a more personalized discussion on how a CLM solution can work for your specific situation, feel free to book a demo with our team. We’re here to help you make the transition as smooth as possible.

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