Match made in heaven? Contract Management Practice in relation to Contract Lifecycle Management Software (CLM Software)
In recent articles, I considered:
- Features that CLM systems are likely to have in the near future; and
- Future concepts and terms in CLM systems software.
In this article, I now consider some characteristics contract management practices will have in the future in relation to contract management software (also known as CLM systems or CLM software). I’ve developed this list after referring to Gartner’s Maturity Model for CLM practice.
1. CLM System Policy embedded in the business - All business units will use the same CLM system. All contracts relating to the entire business will be stored within this system with all relevant versions.
2. Contractual data and governance fully embedded within the organization’s information infrastructure - All information about contracts will be fed to other relevant systems such as ERP and CRM systems. Relevant data from the CLM system will be used in making business decisions.
3. CLM software policy will be entirely integrated within the culture of the organization - Organizations will have and will completely follow a formal enterprise-wide strategic negotiation and contracting plan, and all employees will utilize the full functionality of the CLM system. Executives will regularly use contractual data from CLM software for making strategic business decisions which they can visualise by reports generated by the system or the system will inform them dynamically e.g. through pop-ups with relevant information and suggestions. For example, they may use such data to select the best vendor based on past data about past obligation performance and past ease of negotiation of and with various vendors.
What are your thoughts? Do you think it would be difficult for your organization to arrive at this high-level of adoption of CLM software? Why/Why not?ContractRoom (www.contractroom.com) is a CLM system that looks forward to working with your organization to achieve these characteristics. To learn more about how you too can “negotiate less, agree more” with ContractRoom click here to schedule a free, live demo: