The Benefits of Taking Contract Lifecycle Management Further
When companies are drowning in paperwork and fed-up with being labeled by customers and partners as “hard-to-do-business-with”, they frequently turn to Contract Lifecycle Management (CLM) solutions to remedy the situation.
This makes perfect sense. After all, CLM solutions create a common way to request, author, review and approve contracts. Many organizations see improvements in cycle-time and soon-thereafter, improvements in customer satisfaction, so that is where their CLM investment ends. Unfortunately, these organizations are missing out on the true value that CLM solutions can deliver.
Have you ever kept a file or folder of receipts for tax purposes? Isn’t it easy to just take those slips of paper and just dump them into the folder? It sure is. Unfortunately, when it comes time for tax preparation, getting important data out of that folder isn’t so easy. The same is true with any type of database (or CLM system, for that matter). Getting critical contract information into the CLM application is easy, but how easy is it to get information OUT? Worse yet, what happens when you need to produce contract insight on short-notice? Let’s say, your company is suddenly getting acquired and you need to produce all of the active contracts, amendments and exhibits as well as details (e.g., metadata) associated with each one? Without a robust CLM solution with easy-to-use, consumer-grade search and filtering capabilities, you are stuck; you’re bringing in temps, going through each file in the endless line of file cabinets and it’s a 24×7, all-hands-on-deck project. Or perhaps you’re being audited or preparing for an audit and need to produce similar contracting data and artifacts? It’s times like these when you really appreciate a well-designed, enterprise-grade CLM solution that is designed with the actual user in mind, not just the techie administrator.
Beyond the issue of contract search, filtering and retrieval, many companies are missing out on the benefits a CLM solution can deliver in terms of contracting intelligence and effectiveness. Being able to answer “How long did it take to get this contract done” is terrific, but does it really deliver significant business value? Not really. However, being able to answer the following questions does provide true benefits to the business
- How frequently do we concede on key liability and indemnification clauses?
- Are we meeting our contractual liabilities in terms of milestones, payments, royalties?
- What is the correlation between our contracts, volumes and discounts?
Believe it or not, there are companies that are leveraging their CLM solutions to provide these answers in real-time and across divisions, roles and business units. If you’re thinking that this could give them a competitive advantage in terms of continuous improvements in contracting performance, you’re right. Are you working for one of those companies?
As mentioned, most organizations are so thrilled to reduce contracting cycle-times and just get contracts signed and executed that they miss out on additional value. Revvy Contract Management is a true SaaS-based solution that is designed from the end-user perspective and combines enterprise-level capabilities with consumer-grade user experience. Revvy Contract Management helps organizations transform contracting from a manual, operational, “must-do” process into a strategic weapon that can accelerate revenue, reduce the total cost of selling and create a sustainable competitive advantage for your organization.
For more information on Revvy Contract Management, please visit Model N at https://www.modeln.com/products/revenue-cloud/contract-lifecycle-management/