Before you decide to manage the lifecycle of your business contracts, you need to understand exactly what that lifecycle looks like. Everyone knows that a contract needs to be drafted, negotiated, and signed, but that’s only a small part of a larger story.
For a company to fully unlock the value of their contracts, they need to know and incorporate these nine essential steps into every agreement.
With more data, and improved insight into contractual terms and performance, a business can optimize its portfolio for better value, lower risk outcomes. For high performance contract teams, the goal is a continuous feedback loop between the contract portfolio and business performance. If, for example, the data shows that certain negotiation issues consume a large chunk of time, but yield no measurable difference in risk or performance, you may tweak the playbook to remedy those issues quickly.
Is your company skipping any of these nine steps? If so, don’t worry; you’re not alone. At any organization, it’s easy for one person to just handle “their part” of the process and move on without understanding the entire lifecycle. Indeed, while basic contract management software can help companies improve their contracting process, they still struggle to gain an executive-level view of their contracts that answers important questions about revenue, risk, and obligations.
In a perfect world, companies could count on:
Well, that perfect world has arrived. Welcome to enterprise-wide CLM.