Contract Lifecycle Management for teams is a critical and sector-agnostic business application. Contract Lifecycle Management (CLM) essentially involves controlling, coordinating and streamlining the interdependent stages (including creation, execution, and performance) throughout the lifecycle of contracts, with a view to improve overall business efficiency.
Adopting efficient CLM practices reduces monetary and operational risks associated with consequences of breach, termination, delays or non-compliance. For a CLM solution to have a significant business impact, it should be customizable and malleable enough to serve bespoke, organization-specific requirements of multiple verticals. Largely, Contract Lifecycle Management for teams is necessary for departments such as sales, finance, legal and HR teams.
Let us look at how CLM can be integrated with different teams and what benefits it provides
Contract Lifecycle Management for Finance Teams can help organizations exercise greater control over costs and expenses by streamlining the negotiating stance of enterprises. Reduction in costs can be done by eliminating the high costs arising out of manual monitoring of important obligations, blocking revenue leakages from delayed or missed payments, overpayments, billing errors, etc.
Control on spending can be exercised as CLM systems can provide notifications for trigger events. CLM systems can also help finance teams to abide by strict time-bound regulatory compliance.
Contract Lifecycle Management for Legal teams is undoubtedly a necessity. Legal teams can streamline their tasks by implementing a robust CLM system. CLM platforms can enable legal teams to undertake speedy and accurate creation of high-volume contracts with the help of pre-defined templates.
On the contract review front, currently, manual review opens up room for numerous errors to creep in - contrast this with software applications that automate contract review based on a dynamic, AI-enabled playbook.
CLM solutions can help HR teams keep track of critical employment-related factors such as hiring decisions, performance measures, tracking payment of commissions, renewal of time-bound employment contracts, and monitoring of contractual obligations to name a few, on a real-time basis.
Moreover, CLM enables HR teams to do so across a wide category of personnel - key executives, probationary, contractual employees, external consultants engaged on specific projects, etc. CLM solutions offer real-time visibility on important personnel obligations, thereby contributing to the increasing overall efficiency of the workforce.
Please read about the effects of CLM on Marketing and Sales & Sourcing teams in Part 2 of this article