What is CLM (Contract Lifecycle Management)?
CLM or Contract Lifecycle Management refers to the entire process of creating, negotiating, managing and analyzing your contracts. The term applies whether or not your contracts process is automated. There is complete CLM software, like Exari, and there are standalone software systems that automate one or more steps.
There are eight key steps in the Contract Lifecycle Management process :
- Capture: Step #1 for most people is to get all of their existing paper contracts in a central visible place.
- Track: Once you know where all your contracts are, the next step is to track any important data so you don’t miss any milestone.
- Author: With tracking in place, the focus can shift to accelerating the new contract creation process. The “authoring” process is about setting up contract templates and clause libraries.
- Create: Contract creation has two tracks: one for self-service documents for business users and another to help the legal department draft complex contracts.
- Approve: Companies need an approval workflow process to ensure that risky contracts are reviewed and approved by the right person.
Negotiate: The typical negotiator needs a toolkit that includes a checklist of issues for each type of deal.
- Sign: When the contract is final and agreed it needs to be signed by all relevant people, and the signed copies need to be stored.
- Analyze: Enterprises with 100+ contracts need to analyze those contracts for potential risks, rights & obligations.