Contract Lifecycle Management (CLM), the management of an organization’s contracts from inception to expiration, can help ensure compliance with contractual obligations by all parties, while allowing for greater efficiency and cost-saving opportunities.
CLM software first establishes a repository for your organization’s contracts, allowing them to be easily accessible to appropriate personnel. Most software is equipped with a number of features to make contract management seamless and more efficient, including the ability to create standard templates, customize language and provisions, collaborate with team members and other departments – even automate simple, yet time-consuming tasks. This frees your legal team to focus efforts on projects more valuable to the success of the organization.
CLM software also incorporates unique reporting capabilities to help management gain insight into contract activity and understand where each contract is in its lifecycle, such as total spend, contracts approaching expiration, contracts pending signatures, etc. The ability to quickly analyze information relating to hundreds or even thousands of contracts is essential to properly manage your organization’s contract activity.
Organizations may face many contract-related risks that can have both legal and reputational implications if not properly mitigated. Utilizing CLM software can help organize contracts in a way that allows your personnel to easily identify any changes that might need to be implemented. As laws and regulations change, you need to be able to easily determine if current contracts are in compliance.
CLM software also gives organizations the tools necessary to not only maintain and organize their contract repository, but to ascertain valuable insights surrounding contract data. Leveraging this type of technology can help your organization get the most value out of its general counsel function.
Schneider Downs offers a variety of Risk Advisory Services that can help your institution access, navigate and assist with your contract management objectives. Contact us if you have additional questions.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.