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Design and Build an Effective Contract Lifecycle Management Process

Mitigate risk and drive value through robust best practices for contract lifecycle management.

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Your Challenge

  • Your vendor contracts are unorganized and held in various cabinets and network shares. There is no consolidated list or view of all the agreements, and some are misplaced or lost as coworkers leave.
  • The contract process takes a long time to complete. Coworkers are unsure who should be reviewing and approving them.
  • You are concerned that you are not getting favorable terms with your vendors and not complying with your agreement commitments.
  • You are unsure what risks your organization could be exposed to in your IT vendor contacts. These could be financial, legal, or security risks and/or compliance requirements.

Our Advice

Critical Insight

  • Focus on what’s best for you. There are two phases to CLM. All stages within those phases are important, but choose to improve the phase that can be most beneficial to your organization in the short term. However, be sure to include reviewing risk and monitoring compliance.
  • Educate yourself. Understand the stages of CLM and how each step can rely on the previous one, like a stepping-stone model to success.
  • Consider the overall picture. Contract lifecycle management is the sum of many processes designed to manage contracts end to end while reducing corporate risk, improving financial savings, and managing agreement obligations. It can take time to get CLM organized and working efficiently, but then it will show its ROI and continuously improve.

Impact and Result

  • Understand how to identify and mitigate risk to save the organization time and money.
  • Gain the knowledge required to implement a CLM that will be beneficial to all business units.
  • Achieve measurable savings in contract time processing, financial risk avoidance, and dollar savings.
  • Effectively review, store, manage, comply with, and renew agreements with a collaborative process

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out how a contract management system will save money and time and mitigate contract risk, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

1. Master the operational framework of contract lifecycle management.

Understand how the basic operational framework of CLM will ensure cost savings, improved collaboration, and constant CLM improvement.

2. Understand the ten stages of contract lifecycle management.

Understand the two phases of CLM and the ten stages that make up the entire process.

Guided Implementations

This guided implementation is a seven call advisory process.

Guided Implementation #1 - Master the Operational Framework of Contract Lifecycle Management

Call #1 - Review existing processes.
Call #2 - Understand what CLM is and why the framework is essential.
Call #3 - Create an implementation or improvement plan.

Guided Implementation #2 - Understand the Ten Stages of Contract Lifecycle Management

Call #1 - Review the ten stages of CLM.
Call #2 - Complete the CLM Maturity Assessment.
Call #3 - Create a plan to target improvement.
Call #4 - Track progress to measure savings.

Onsite Workshop

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Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Review Your CLM Process and Learn the Basics

The Purpose

  • Identify current CLM processes.
  • Learn the CLM operational framework.

Key Benefits Achieved

  • Documented overview of current processes and stakeholders.

Activities

Outputs

1.1

Review and capture your current process.

  • Existing CLM Process Worksheet
1.2

Identify current stakeholders.

1.3

Learn the operational framework of CLM.

1.4

Identify current process gaps.

Module 2: Learn More and Plan

The Purpose

  • Dive into the two phases of CLM and the ten stages of a robust system.

Key Benefits Achieved

  • A deep understanding of the required components/stages of a CLM system.

Activities

Outputs

2.1

Understand the two phases of CLM.

2.2

Learn the ten stages of CLM.

2.3

Assess your CLM maturity state.

  • CLM Maturity Assessment
2.4

Identify and assign stakeholders.

  • CLM RASCI Diagram

Search Code: 91385
Published: March 11, 2020
Last Revised: March 11, 2020