Contracts are the fuel that powers every business, and contract lifecycle management process is the engine that keeps it running smoothly. Working with a broken or faulty engine is a situation no business wants to be in — and no legal counsel wants to be responsible for.

So how can you go about streamlining this process at your organization? Or, if you’re walking into total chaos in a new company, how do you start to even set this up?

We consulted GCs and legal leaders who have been in these shoes, as well as experts from the legal industry, to create this comprehensive guide to contract lifecycle management. Keep reading to learn what goes into creating a thoughtful CLM (contract lifecycle management) process that actually creates impact.

“The present-day GC is expected to grow beyond conventional roles and responsibilities and wear multiple hats to eventually become a business enabler.” 

— Gitanjali Pinto Faleiro, General Counsel, Company Secretary & CCO at Greenhill & Co.

What is contract lifecycle management or the CLM process?

Contract lifecycle management (CLM) is the process behind contracting at any organization. A proper CLM process provides a framework to streamline and automate the key stages of a contract, from contract planning and drafting to execution and compliance management.

What are the 7 stages of contract lifecycle management process?

The contract lifecycle management process typically involves 7 stages

Here’s a look into what that process broadly looks like:

#1 Contract creation or authoring

The first stage of a contract’s lifecycle is when a team member identifies the requirement of a contract and puts in a request to create it. This could happen two ways:

• Through a self-serve process where the sales rep, HR, or business team member fills in key details within pre-approved templates and pushes it to the next stage.
• Through the company’s legal ticketing system where the business team member puts in a request for the legal team to draft the contract.

Also Read: Everything You Need to Know About Contract Creation Software

#2 Contract review and approval

Once the contract is drafted and uploaded into the system, the legal team and relevant stakeholders from finance, procurement, etc., will review and approve it. They’ll check the contract against established standards to ensure compliance and reduce risks. This is typically done through an internal ticketing system, Slack, email, or a project management tool, or by using CLM software to push the contract for approval based on defined hierarchies.

Also Read: Unlock Efficiency with Contract Collaboration Software

#3 Contract negotiation

Once the contract is approved internally, it’s time to negotiate it with the other party. This stage of contract process could be anything from just a few hours to stretching into days and weeks of back-and-forth. Usually, using standardized contracts makes this process more efficient, with pre-approved fallback language in place for commonly negotiated clauses.

“Once we came up with fallback positions and enabled sellers with them, the number of contracts coming to legal for negotiation reduced further. Obviously, we were very, very careful about what changes the sellers were allowed to make and anything beyond that still comes to us.”

— Sue So, Head of Legal, Hopin

Also Read: Contract Negotiation Software: Why Do You Need One? 

#4 Contract execution and e-signature

Next comes the execution stage, where the contract is finally signed after gaining all necessary approvals. Today, this is usually done via e-signature software that can help streamline and centralize this process for easy communication and visibility.

Also Read: A Quick Introduction to eSignatures

#5 Contract storage and archiving

It’s important to maintain a record of historical contracts and track every active contract to ensure easy retrieval. Once a contract has been created or executed, it should be stored in a centralized repository alongside all relevant documents, data, and communication records.

Also Read: Contract Storage: Store Your Contracts Effectively

#6 Contract obligations management and fulfillment

Once a contract is executed, the obligations and requirements must be tracked for all parties involved. This includes deliverables, potential milestones, deadlines, compensation, and any other obligations outlined in the contract. This stage also includes tracking performance of executed contracts, performing analytics to create reports, and resolving any issues that may arise.

Also Read: Using Contract Analytics to Uncover Key Insights: A Guide 

#7 Contract renewal or termination

Towards the end of the contract lifecycle comes contract renewal or termination, according to the clauses laid out in the contract terms and the relationship between the parties. The organization tracks upcoming renewals or contract expirations, assesses their performance impact on the business, and determines whether to renew, renegotiate, or terminate them. This step also involves tracking auto-renewals to prevent unwanted financial liabilities.

Also Read: Contract Renewal Process: Strategy + Best Practices

Why is contract lifecycle management important?

The way your contracts advance through each stage of the contract lifecycle is critical in determining the impact and effectiveness of the legal team within your organization. Here’s why you should streamline your contract lifecycle management processes:

#1 Contracts get closed faster

First things first, a streamlined CLM process means improved turnaround times. By bringing consistency within the contract lifecycle, standardizing contracts, and easing contract collaboration, organizations can quickly generate contracts and track their status for greater visibility. This helps legal teams save time on manual work like creating high-volume contracts or tracking them down on various channels.

#2 Legal gets time for higher-value work

A bad process leaves the legal team buried under the manual, repetitive, and low-value work of simply generating contracts and putting out fires arising out of the chaos. A good process, however, streamlines contracting so that Legal can focus on strategic, high-value work to enable the business and prevent mistakes that cause those fires to happen.

”You can either be part of the cleanup crew or do stuff to avoid that cleanup situation altogether."

— Gitanjali Pinto Faleiro, General Counsel, Company Secretary & CCO at Greenhill & Co.

#3 Managing risk and compliance is easier

An efficient contract management process requires efficient contract tracking and transparency. With greater contract visibility on both on-going and historical contracts, organizations are able to mitigate risks and manage compliance more effectively, protecting business interests.

#4 Costly mistakes and errors plummet

A burdened legal team and inefficient contract processes spell out trouble for any business. Not only do things take more time, risking time-sensitive projects and deals, there’s a high risk of human error and data management becomes a nightmare. Streamlining the CLM process ensures that everyone knows exactly where to find the answers they need. 

#5 Cross-functional teams don’t dread approaching Legal

“Sales takes precedence in commerce-driven companies.”

— Ryan Nier, General Counsel, Pinwheel

Legal is often perceived as a bottleneck or a ‘department of no’ by business teams. By streamlining the contract lifecycle, legal teams can bridge the gap with other departments and improve cross-functional communication, improving turnaround times and ensuring that high-priority projects take precedence over low-priority contracts. 

“The legal team should not say ‘no, the transaction can’t happen.’ Rather, they should explore ways wherein the customer-facing team member could approach the transaction in a way that does not break any laws. Once the legal team makes the transaction happen by finding a workaround, the notion of them not being approachable will fundamentally change.”

— Sandeep Chowdhury. Group GC, HCC Ltd.

8 steps to creating an effective contract lifecycle management process

Once you’ve decided to take on the task of streamlining your contract lifecycle management into a scalable and repeatable process, it’s time to plan. It’s critical that you go about this methodically and involve all relevant stakeholders from the get-go.

Here’s how you can streamline your contract lifecycle management process in 8 steps:

#1 Analyze your current process and pain points

Start by evaluating your current process. Look at questions like:

• Do you have a formal CLM process? How strictly is it followed?
• How are different stages of the contract lifecycle managed?
• Where are contracts stored?
• Who’s involved in contract creation, approval, and management?
• What are the main pain points, and how do turnaround times vary?

#2 Lay down the problems you want to solve

“Try to glean as much info about what causes friction as possible. Your biggest wins will come from addressing these knowledge gaps or hesitancies that are blocking/slowing deals.”

— Sue So, Head of Legal, Hopin

After analyzing your process, list the issues you need to resolve. These might include:

• Overworked legal teams causing errors
• Inconsistencies between contracts of the same type
• Gaps in communication between legal and sales teams
• Mismanagement of historical contracts

#3 Assign roles and responsibilities

Clearly define roles and responsibilities within your team. This includes:

• Equitably distributing tasks based on experience
• Identifying which stakeholders need to be involved and when
• Creating a hierarchy for approvals to streamline the process

Once you answer these questions, you will be better positioned to create a CLM process that works for you and not against.

#4 Selecting where to host your new CLM process

“By building a CLM tool, we brought added value. When you’re spending multiple hours a day on redundant tasks, it’s a good sign to see small improvements to that process yielding tremendous results. ”

— Ryan Nier, General Counsel, Pinwheel

You don’t need to immediately adopt a CLM tool. Start with simpler solutions like project trackers or spreadsheets.

Get a taste of automation with our Contract Tracking and Management Spreadsheet Template.

Ideally, keep the process centralized to minimize platform switching, and ensure it integrates with tools already in use, like CRMs.

#5 Involve stakeholders and executives right from the get-go

“Every stakeholder sought quick contract approvals, but they were unfamiliar with the review and risk assessment process associated with contract approvals. Now everybody knows no contract can be signed or executed without going through our CLM tool, and every stakeholder has clarity on where the contract is in the pipeline.”

— Nadia Louis Hermez, Legal Ops Manager, Next Insurance, Inc.

For your new process to succeed, get cross-functional buy-in early. Include teams like Sales, Procurement, Finance, and HR to ensure smooth adoption.

#6 Set up effective workflows

Once you’ve decided where your new process should live, whether that’s a CLM system or not, it’s time to set up workflows around important contract management tasks.

Create clear workflows for key tasks like:

• Building a legal ticketing system for requests
• Automated notifications and task tracking for transparency
• Approval workflows to speed up the process
  Automating reminders for approvals or renewals keeps everyone on track

Also Read: How to Set Up an Efficient Contract Approval Process (+Template & Examples)

Also Read: Plug Revenue Leakages With A Contract Reminder Software

#7 Carry out contract reporting and governance

“You need to tell stakeholders what your team is up to. Otherwise, leverage tools such as CLMs to showcase how your team has contributed to closing deals effectively.”

— Juliette Thirsk, Head of Legal, Peach Payments

Set up a centralized contract repository for easy access and establish a reporting system to track performance. Use analytics to identify bottlenecks and improve the process continuously.

Check out our webinar: Contract Analytics in Focus

Once you have your contract data in order, you should set up a process for contract reporting and analytics. This helps you uncover insights on things like turnaround times, contract closure rates, bottlenecks in the process, etc. These will help you further streamline your process on an ongoing basis to keep your new CLM process dynamic and smooth-flowing.

Also Read: Using Contract Analytics to Uncover Key Insights: A Guide 

#8 Setting up renewal and termination processes

Ensure you track important contract dates like renewals and expirations to avoid missed opportunities. Use dashboards to stay on top of these deadlines and take action before it’s too late.

By following these steps, you’ll streamline your contract lifecycle and boost efficiency and cost savings across your organization.

Also Read: Contract Management Dashboard: A Comprehensive Guide

Do you really need to bring in CLM software?

“Forward-looking GCs or commercial attorneys understand that automating processes via a CLM system is a step in the path to help the business reach a certain level of maturity. Onboarding a solution earlier than when it is strictly needed helps iron out an efficient process from the get-go and creates a foundation for future success — so they’re not building the plane while it’s trying to take off in a few years.”

— Tyler Finn, Community & Growth @ SpotDraft

Investing in a CLM solution is not something that should be done on a whim or on the basis of one person’s enthusiasm for technology. When that happens, CLM implementations usually fail due to lack of forethought and planning or end up getting barely adopted throughout the organization.

However, when done right, onboarding the right contract lifecycle management software can revolutionize your contract processes.

A CLM software helps legal teams:

1. Automate manual tasks and create workflows that would’ve eaten up a ton of time and resources to set up otherwise.
2. Create a single source of truth for all contracts and legal processes.
3. Streamline communication in one place for easy search and contract discovery.
4. Integrate with CRMs and tech that other teams in your organization may be using to allow for easy collaboration.
5. Control access to contracts in a secure manner and provide visibility to every stakeholder.

Also Read: Is CLM a Good Investment to Overcome Legal Challenges?

Check out our CLM buyer’s guide here.

Automating every aspect of the contract lifecycle management process

Whether you’re opting for a contract lifecycle management software or building out processes manually across multiple platforms, you will sooner or later require systems to automate every single aspect of your contract lifecycle.

Below are 6 critical aspects of contract management that your CLM system should help you automate:

#1 Migrating historical contracts

The very first thing to do when implementing an efficient contract lifecycle management system is to update all your historical contracts and migrate them into your contract repository.

This ensures that there is only one source of truth for all your contracts and enables greater contract data management, transparency, and analytics.

Migrate contracts to your CLM dashboard on SpotDraft with one click.

Also Read : A Deep Dive Into the Legacy Contract Migration Process

#2 Creating a contract repository and streamlining data management

Once you define a contract repository for all your contract data, it’s critical that you ensure it’s the ONLY source of truth for contracts at your organization.

An audit trail helps you maintain a centralized system of records on SpotDraft.

Even if specific tasks happen off the platform, such as communicating with counterparties via email, there should be a culture of recording that information into your contract repository to enhance transparency and avoid having to switch platforms for context.

Also Read: How to Amplify Legal's Impact via Effective Contract Data Management 

#3 Standardizing contracts

To allow Legal to transform from a team that just creates and negotiates contracts to a team that actively creates business value, standardizing inefficient processes and repetitive work becomes incredibly critical.

Create contracts instantly from pre-approved contract templates on SpotDraft.

Standardizing contracts involves:

1. Creating templates for high-volume contracts that you often find yourself duplicating from previous drafts.
2. Standardizing contract language by creating a playbook or a contract library, and creating fallback language for highly-negotiated clauses.
3. Setting up automated workflows via a CLM system for efficiency and ease of use.

Also Read: How to Standardize Contracts for Better Contract Management

#4 Simplifying contract approvals and collaboration

An efficient contract management software automates contract collaboration, review, and approval process and allows for greater efficiency for all stakeholders — enabling faster closure of contracts, consistency in deal terms, reduction in risks and costs, and freeing up legal bandwidth.

Set guardrails and request reviews and approvals on SpotDraft to streamline collaboration.

#5 Removing cross-functional friction

“If you’re in an advisory role like Legal, it is natural for you to have friction with business stakeholders. My advice is to understand which stakeholders you’ll have maximum friction with and then adjust and lean in. Try to align the legal roadmap with their goals. In case of conflicts, make sure you’re both seeing it as a partnership. Help them understand and navigate legal risks. Also, make sure they feel educated and comfortable in making decisions (or, if they’re not the decision maker, help them resolve and get to YES).”

— Ryan Nier, General Counsel, Pinwheel

Perhaps the most important aspect of efficient contract lifecycle management is setting up the right channels of communications with cross-functional teams and aligning priorities to achieve business goals.

Collaborate with stakeholders in one place and set access controls for greater security.

By automating this communication and bringing it all together on one platform via a CLM system, legal teams can enable greater transparency into what they’re working on and ensure they’re not busying themselves with low-value work. This helps them work in harmony with teams like sales and finance, instead of being stuck in a silos.

More guides on streamlining contracts for different functions:

‍• How Are CLMs Useful for CFOs & Finance Teams?
‍• Why Your Procurement Team Will Find SpotDraft CLM Solution Useful
‍• Your Guide to a Flawless Sales Contract Management Process

#6 Tracking success and optimizing the process for complete visibility

Once your CLM process is set up and operationalized, it’s important to keep track of its performance, identify issues and bottlenecks, and continually optimize it based on feedback, observations, and analytics.

While it’s possible to do this manually, it can become inefficient to keep up with performance tracking when operating on a larger scale. CLM software like SpotDraft can help automate this by providing insights and data visualizations on crucial contract data.

Access data visualizations and insights from your insights dashboard on SpotDraft.

Also read : Basics of Contract Management Software - Your Go-to Guide

Best practices for implementing CLM software

A CLM has proven capable of helping companies scale their contract management process and ultimately boost revenue. However, its effectiveness hinges on a robust implementation strategy.

Also read: Developing an Effective Contract Management Strategy: An Essential Guide

Here, we’ve covered best practices you must adopt to effectively implement CLM software in your organization.

#1 Start with a comprehensive implementation plan

This is the first and most crucial step. A comprehensive CLM implementation plan ensures you enter the process fully prepared, setting you up for a smoother, more successful outcome.

In your plan, clearly outline key pain points in your current contract management process that the CLM should address, such as manual data entry, inefficient contract review, or difficulty tracking reugulatory compliance. Identify teams that’ll be in charge of the implementation, those that’ll benefit from it, and what kind of training you’ll provide.

Also read: Top Contract Management Training and Resources in 2025

#2 Narrow down to a short list of CLM providers

Research and evaluate various CLM providers to find the best fit for your organization's needs. Consider factors such as features, scalability, pricing, and customer support. Create a shortlist of potential providers and take advantage of demos during your evaluations.

#3 Get buy-in from stakeholders

Build a convincing business case for the CLM, highlighting the pain points your organization faces with contract management systems, the potential risks associated with the current approach, and how a CLM will change the game for the company.

Address any concerns or objections and promise to keep them in the loop throughout the implementation process.

#4 Prioritize phased rollouts

Implement the CLM in phases to minimize disruption and ensure a smooth transition. Proceed with a pilot program involving a smaller number of users or departments and gradually expand the implementation as you gain feedback and address any issues.

#5 Create a schedule for regular reassessments and optimization

Continuously monitor and evaluate the CLM's performance to identify areas for improvement. Conduct regular reassessments to ensure the system aligns with your evolving business needs. Make necessary adjustments and optimize the CLM to maximize its benefits.

Also read : Top 10 Contract Management Skills to Master in 2025

What success looks like when optimizing your contract lifecycle management process

Ultimately, an efficient contract lifecycle management process should translate to:

1. A happier sales team.
2. A happier, less overworked legal team.
3. Smoother contract collaboration and negotiation process.
4. And more revenue booked for the business.

SpotDraft helps organizations achieve that by automating their end-to-end contract lifecycle process for them, right from contract requests and creation to tracking contracts post-execution.

[Case Study] How Cactus Communications streamlined its contract lifecycle with SpotDraft

Cactus Communications saves over 40 hours a week (= an additional team member!) with SpotDraft, by automating their contract lifecycle process in three ways:

1. Automating 80% of its contract work and freeing up 95% of the legal team’s time spent creating boilerplate contracts.
2. Reducing time spent on generating monthly MIS reports by 90%.
3. Importing 650 historical contracts and data to the repository, and extracting and keeping track of 28 key pieces of contract metadata with the help of AI.

With SpotDraft, they didn’t have to spend time fielding legal review requests on email, managing contract versions created on Google Docs, and manually extracting data or creating reports (which could take weeks). All of this was automated within the platform itself.

“After the very first demo, we were totally convinced that SpotDraft was the solution for us. Using SpotDraft has helped us reduce an immense amount of time spent on manually drafting contracts, creating monthly reports, creating a repository for all our agreements, setting expiry reminders and so much more.”

— Gabrielle Menezes, Cactus Communications

Choose SpotDraft as your contract lifecycle management solution

Want to see for yourself how you could revolutionize the contract lifecycle management process at your organization? Request a live demo and speak to our experts to understand how SpotDraft can help.

FAQs about contract lifecycle management process

What is a CLM workflow?

A Contract Lifecycle Management (CLM) workflow is a structured process that encompasses all stages of managing contracts, from initial request and creation through negotiation, approval, execution, and eventual renewal or termination.

What is a CLM framework?

A CLM framework refers to a comprehensive collection of guidelines or approaches for managing contracts from end to end. It encompasses best practices, tools, and techniques contract managers must incorporate to ensure a productive contracting process.

What is the difference between contract management and CLM?

Contract Management focuses on administering contracts during their active period, including tasks like drafting, executing, and monitoring for compliance and performance. CLM, however, is a broader approach that covers the entire contract lifecycle, from creation to termination, emphasizing process optimization, technology use, and alignment with organizational goals.

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