What is Contract Lifecycle Management (CLM)?

What is Contract Lifecycle Management (CLM)?

Contract Lifecycle Management, often abbreviated in CLM, is the process of managing the creation, negotiation, execution, performance, monitoring, renewal, and expiry/termination of an organization’s contracts. More specifically, CLM normally refers to software tools that help legal, sales, and procurement teams to create and manage each stage of their contracts in one place.

Each tool has its own features and capacity, catering to a diverse range of users. Basic solutions include workflow and repository management. Advanced ones offer AI contract review and drafting, email and Word add-ins, ERP and CRM integration, e-signature, contract performance monitoring, obligation management, team KPI reporting, and more.

Benefits of Contract Lifecycle Management

Contracts represent the backbone of any economic activity, as they regulate all the exchanges an organization engages in with its suppliers, clients, employees, and partners. Setting up efficient contract management processes allows companies and public institutions to deliver more and faster, while accurately tracking the compliance of their agreements.

Advanced CLM tools allow measurable benefits*:

• Contract cycle time: -80%

  The end-to-end contract lifecycle can be reduced by up to 80%. The substantial efficiency improvement increases individual capacity and speeds up deal closing (= higher revenue).

• Legal staff time: -60%

  The legal staff can spend up to 60% less time on contracts thanks to automated workflows and AI review support (= lower cost).

• Return on investment: > 300%

  Thanks to the benefits above, improved contract compliance, effective renewal tracking, and better contract performance control, the organization’s return on investment (ROI) can be greater than 300% over three years

If you wish to learn more about the existing CLM solutions on the market, do not hesitate to contact us. You can also find out more about how we can help you throughout your CLM journey and the 7 Reasons to Choose an Independent CLM Consultant.

* Source:
Forrester Total Economic Impact™ Study for Ironclad (2023) and Docusign (2020 & 2024).