Contract Lifecycle Management (CLM) implementation can be risky business. Not only do most of them fail, but many vendors fail to deliver on what they promised. Failed implementation can waste time and money and disrupt your business in ways that have far-reaching consequences.
To avoid the headache of a horrible implementation, here are five red flags to look out for.
Your Legal Team Is Flying Solo
CLM implementation is a team effort. So for best results, both stakeholders and end users need to be involved. A single team member evaluating a CLM solution is a red flag and sets the entire implementation process up for failure.
Before selecting and purchasing a CLM solution, each team using the tool should be involved to some extent. Their usage and input will be vital to the overall success during the implementation process and beyond.
You Don’t Know Where Your Contracts Are
It’s common for companies to have different versions of contracts scattered across the business before they implement a CLM solution. This is common for businesses with many legacy contracts – and is probably why you need a CLM solution in the first place.
But starting implementation without knowing where all your contracts are is a red flag.
An important step in a successful implementation is to gather up all your contracts — no matter what format they’re in — so that you can import all of them into your new system. What’s the point of having a CLM if it won’t house all your contracts?
You Don’t Have a Contracting Process
You might be thinking, “Isn’t that the point of a CLM? To determine the contract process?” The answer to that is yes and no.
Before getting a CLM solution, many companies have an ad hoc contracting process. That means every contract — even the same types of contracts — gets a different treatment. Going into implementation without an outline of what you’d like the process to look like isn’t a good idea.
Ask yourself and your team these questions: What types of contracts do you manage? How will they move through your business? Which teams are responsible for which contracts? What does your ideal workflow look like?
Don’t go into implementation thinking that the process will figure itself out. You and your CLM vendor are in control.
You Haven’t Thought About How You’ll Use Contract Data
One of the benefits of having a CLM tool is having easy access to all kinds of data to make more informed business decisions. The best CLM solutions have sophisticated functions that allow you to generate reports on spend, sales targets, and different types of agreements. In order to use this function, you need to know what contract data you want to track and how you want to use it.
If you go into implementation without at least an idea of how you want to use your data, you might find that you’ve set up a system that doesn’t offer you the right insights into your business. Figuring it out ahead of time will help you run better reports and automatically collect important company data.
Your CLM Vendor Leaves You to Figure It Out on Your Own
Choosing the right vendor can make or break your CLM experience. A huge red flag to look out for is a vendor that leaves you to figure out crucial implementation aspects independently. The best vendors are partners that help you figure out how to structure your agreements, build your workflows, and execute change management for your team. LinkSquares fits into that category – take it from our customers!
Takeaways
Don’t let your implementation block you from all of the benefits a CLM solution provides. Once your stakeholders and end users have decided on a vendor, get your contracts in order and map out your process. Here are some other tips for once you’ve purchased a CLM.
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