Maximizing the Benefits of Contract Lifecycle Management

3-10-2016 | by Benjamin Fleshman

Taking control of your contract’s lifecycle—managing the manner in which each contract is drafted, negotiated, awarded, fulfilled, renewed, etc.—is one of the fundamental principles for any business. According to an Aberdeen Group study, 74 percent of best in class performers use contract lifecycle management (CLM) software for research and analysis, 44 percent for contract creation and auditing, 41 percent for electronic signatures, 37 percent for negotiations, 33 percent for proposal development, and 26 percent for risk assessment. CLM is rapidly becoming a larger and larger part of every business model. Here are a few of the practices that these best in class performers are using to capitalize on their contract lifecycle management software.

Establish Timelines for Each Step in the Contract Lifecycle

The first step is to create an effective timeline for contract completion. Plan everything out, from the research stage all the way through the award and post award stages. Have specific due dates for each section of the work. This not only helps you stay organized, but it gives your team specific goals to work towards, and it allows your potential clients the luxury of knowing exactly when to expect deliveries, payments, etc.

One of the benefits of Concord’s CLM software is that it will send you deadline reminders, just in case you or one of your staff members forgets. It will also notify your client of the deadline, after they have signed the contract. These deadline reminders, along with the clear, easy to use system, help you to easily create your timeline.

Properly Distribute Staff Workloads and Resources

            Collaboration is key in maximizing time efficiency. Be clear with your team what their specific assignments are, and grant them room for creativity in the assignment. When the workload and resources are distributed properly, it will streamline your contract creation, signing, and completion. When you save time on your contracts, you also save money and labor for your company.

Concord makes collaboration simple with team editing, note taking, and collaborative technology. You can make edits to the contract, add notes on the side, comment for clarity, and collaborate all in a single location. Everyone is invited, and everyone can contribute.

Create an Accurate Audit Trail for Approvals

            Every company is audited at one point or another. The blessing of using CLM software is that it makes the audits easier because it leaves an easily visible audit trail. Every contract that you store in Concord’s secure server is a contract that you can easily access and compare to others.

Maximizing this benefit is fairly simple. Be sure that you store and organize your contracts properly within the server. Make them easily navigable with tags, folders, or whatever works best for your company. That way, when the audits roll around, you’ll be prepared and organized.

Measure Compliance, Deliverables, and Performances

            Be certain that every term of the contract is fulfilled accurately and punctually. Whether that term is one which your company is required to comply with, or one for your client, measure the compliance. Make sure that your goods are delivered on time, and in accurate quantities. Payments need to be managed and monitored. Using a CLM software program will help you with all of these things.

When you know the extent of contract compliance, then you have something more to report to the stake holders, and you know how better to run your business. Measuring compliance can be one of the most difficult and nuanced things in CLM, but it is also one of the most rewarding. It is one among many of the benefits that Concord’s cloud-based contract management system can help bring to your business. Be sure to capitalize on these opportunities offered by our CLM software.