Contract lifecycle management (CLM) is a critical process for businesses across industries and of all sizes. It optimizes how an organization creates, monitors and manages its contracts. As such, companies with automated and comprehensive CLM best practices are positioned to experience increased efficiency and productivity and to be better-equipped to manage their contractual obligations for long-term success.

Streamlined Processes

CLM best practices involve automating the contract lifecycle from beginning to end, from the authoring and acceptance stages to the (e)signing and renewal of contracts. This streamlines the contract management process, simplifying the tasks associated with the creation, negotiation and execution of contracts. Automation also minimizes time and ensures accuracy in data entry, providing a standard protocol for contracts throughout the organization.

Enhanced Security

CLM best practices prioritize security and data privacy, protecting all important documents, both physically and digitally. Data is encrypted and stored securely, allowing only authorized users to access sensitive information—such as financial data—as needed. Adopting detailed security practices helps make sure confidential content is protected from third-party or internal misuse.

Risk Management

CLM best practices also help organizations identify and address any contract-related risks. Organizations are better equipped to monitor contracts and receive alerts when they are close to expiry. This keeps organizations up-to-date on the terms of each contract, allowing them to remediate any risks or renew contracts in a timely manner. It also reduces the potential for considerable financial losses due to overlooked contractual obligations.

Greater Visibility

Organizations with well-implemented CLM best practices gain valuable insights into the overall performance of their contract management processes. This improves visibility into contract creation and execution rates, allowing organizations to promptly address any risks or issues that may arise. It also assists decision-makers in assessing which contracts are most important to the organization and which ones need to be prioritized.

Improved Efficiency

Finally, CLM best practices lead to overall business efficiency and improved productivity. Automation reduces costs associated with printed/paper-based contracts and manual processes. It also shortens the amount of time it takes to move a contract from start to finish, enabling the organization to complete more work in less time. This translates into improved profitability.

Overall, CLM best practices are fundamental to an organization’s contract management success. Whether it’s safeguarding data or reducing risk, the development and implementation of CLM practices lead to improved efficiency, security, and visibility into contracts. Ultimately, it enables organizations to more effectively manage contracts for long-term success.