How can you improve your contract risk management with lifecycle tools?

1 Benefits of CLM tools

CLM tools are software applications that enable you to create, store, track, analyze, and manage your contracts in a centralized and secure platform. By using CLM tools, you can reduce human errors and inconsistencies in contract drafting, review, and approval. Additionally, you can enhance contract visibility and accessibility for all relevant stakeholders, while enforcing contract compliance and governance with predefined rules and workflows. Moreover, you can monitor contract performance and obligations with alerts and notifications, improve contract negotiation and collaboration with internal and external parties, as well as generate contract insights and reports with data analytics and dashboards. Consequently, CLM tools can help you improve your contract risk management.

2 How to choose a CLM tool

When searching for the best CLM tool for your business, there are several factors to consider, such as your contract volume, complexity, and diversity. You should also assess the tool's ability to automate and streamline your contract processes and integrate with existing systems. Additionally, it is important to consider the security and scalability of the tool, as well as its budget and ROI expectations. It must be able to protect your contract data and documents from unauthorized access, loss, or breach and deliver a positive return on investment. Finding the right CLM tool will save you time, money, and resources in contract management.

3 How to implement a CLM tool

When selecting a CLM tool, you need to implement it effectively to maximize its benefits. This includes defining your contract objectives and metrics, assigning roles and responsibilities, providing training and education to users, and monitoring and evaluating your results. You should establish what you want to achieve with your CLM tool and how you will measure its impact on contract risk management. Additionally, you need to identify who will be involved in using and managing the tool and what tasks they will perform. Furthermore, users should be provided with adequate training on how to use the tool and how it will improve their contract processes and outcomes. Finally, you need to track and analyze your contract data and performance with your CLM tool, comparing it with your baseline and goals.

4 How to optimize your CLM tool

Implementing a CLM tool is not a one-time event, but an ongoing process of improvement and optimization. To ensure optimal performance, you must keep the tool updated and maintained with the latest software updates, patches, and security measures. Additionally, user and stakeholder feedback should be collected and acted on for enhancing the user experience. Furthermore, you should explore and leverage new features and functionalities that your CLM tool may offer, such as artificial intelligence, machine learning, and blockchain. Lastly, benchmark your contract practices against industry standards and best practices while innovating your processes and strategies with your CLM tool.

5 How to get started with CLM tools

If you are interested in improving your contract risk management with CLM tools, you can start by conducting a contract audit to assess your current situation, identify your pain points and gaps, and determine your improvement opportunities and priorities. Additionally, you should research and compare different CLM tools based on your criteria and requirements, request demos and trials to test their functionality and usability. Furthermore, plan and execute your CLM project with a clear scope, timeline, budget, and team while following the best practices for implementation and optimization. Ultimately, CLM tools can help reduce contract risks, enhance contract performance, and increase contract value. By choosing the right CLM tool for your needs, you can make sure you get the most out of it.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?