What does CLM mean? You know we like acronyms. But we also like simplifying the legal tech world. Contract Lifecycle Management is a system used to keep trace of all the phases of a contract: from creation to execution until its renewal.
How a Contract Lifecycle Management software can help you?
Since time is money, having the ability to speed up your process will help your firm to expand its activities. It will also ease the collaboration between you and your counterparty and within your team by staying better organized. It is surely an opportunity to grow your business.
Which are the phases?
We can underline a first phase where the contract is created, negotiated, approved and signed. After this early stage the contract moves to a second step being executed. The succeeding part is when the contract is stored and organized: it’s essential that a contract is well filed in order to be found later whether you will need to re-negotiate. A good CLM will also help to manage overall risk. Make sure to let a contract be accessible and searchable securely. Once the contract reaches its scope, it must be renewed: here comes the CLM which will help you to postpone its expiry date.
Why a CLM?
A good CLM will help to reduce risks, eliminate errors and improve your workflow while drafting contracts. More than 50% of legal tasks will be supported by automation so legal teams must be prepared to stay up-to-date. These kind of automation will help the team to save a lot of time: according to McKinsey, employees spend almost 10 hours per week searching and gathering information. It’s important that a team knows they can relate on such time-saver technologies. As Richa Kaul, Chief Strategy Officer at ContractPodAi said: “the right technology vendor will fully support a manageable and incremental transformation journey for their clients, and make it easy to adopt and implement a solution.”