How to Implement End to End Contract Lifecycle Management Software

​Contracts are the backbone of a company’s relationship with its clients. Top companies avoid risking productivity by managing contracts with outdated technology or inflexible processes. By 2032, the market for contract lifecycle services is expected to reach nearly $4 billion.

Many businesses now use contract management software with modern features like standardized templates or AI integration. However, even with software, companies still need a smooth workflow for managing contracts. Contract Lifecycle Management (CLM) software is just a tool—how you use it matters.

This guide will show you how to create an end-to-end contract management process and align CLM software with your unique needs.

What is contract Lifecycle Management?

Contract Lifecycle Management (CLM) is the process of handling a company’s contracts with customers, vendors, partners, and employees. It covers everything from drafting the contract to implementing it and eventually closing it.

In the past, managing contracts often relied on outdated methods like spreadsheets, file cabinets, email inboxes, and tools like Microsoft Excel.

Why Modern CLM Is Important

Today’s businesses face new challenges, like the rise of hybrid and remote work, which can make communication about contracts harder. Another big issue is data availability—companies need digital tools to centralize contract management and streamline workflows in this digital era.

New technology is making a difference. Nine out of ten companies report better access to data after adopting modern tools. Businesses of all sizes should consider CLM software to improve and modernize their contract management processes.

What Is the Best Way to Manage Contracts?

To manage contracts effectively, businesses should choose CLM software that works with their current systems. The software should include features that improve efficiency, make data easier to access, and ensure compliance with rules.

The contract lifecycle process can be broken into simple steps. Using the right CLM platform can make each step more effective and easier to manage.

The Start of a Contract Creation

The lifecycle of a contract begins with contract creation, also known as a contract request. Traditionally, this process involves your legal team manually drafting the contract based on the budget and the parties involved.

Common bottlenecks in this process include delays in creating templates, adding approvers, and customizing fields for specific situations.

With CLM software, your team can streamline contract creation by:

• Standardizing templates
• Adding custom fields
• Including fields for signatures, approvers, and signers
• Adding conditional clauses
• Creating multiple contract requests at once

By automating these administrative tasks, your legal team can focus on refining the details of the contract instead of repetitive work.

Negotiation and Approval

In the past, negotiating contracts was a slow and tedious process that required manual approvals, managing drafts, and keeping track of versions. Digital Contract Management makes this much easier by reducing time and legal costs while improving relationships with clients.

With a digital system, contracts can be edited, negotiated, and sent to stakeholders for review, all while maintaining a clear legal record. The approval process becomes seamless, ensuring all relevant parties receive updates and new drafts when needed.

Acceptance

Traditionally, contracts were only accepted with physical signatures. Now, CLM software simplifies this process with e-signatures and built-in digital signature options. Choose a system that supports digital signatures, as many clients prefer this convenient option.

Fulfillment

For a contract to be fulfilled, both parties must stick to the agreed terms. Successful contract fulfillment is key to building strong client relationships.

CLM software helps legal teams track and organize important details in active contracts, such as approval dates, payment terms, fulfillment requirements, and service obligations. This ensures everything is completed as promised.

Understanding the Problem: Contract Analysis

Contract analysis is a new and essential step in contract management, made possible by modern data collection tools. CLM software helps businesses improve their processes by creating a data repository that stores important contract information.

For example, businesses can identify which stakeholders are causing delays and how renewal dates affect contract fulfillment. Advanced CLM solutions, integrated with tools like SharePoint Contract Management, track contract performance and provide ongoing training and support for legal teams.

Automated Contract Optimization

With contract data repositories, contract optimization is now fully automated. Businesses can improve their contract lifecycles by accessing more detailed data, which used to be a heavy burden on contract management staff.

Key benefits include:

• Identifying and fixing bottlenecks by analyzing turnaround times.
• Using fulfillment data to improve inventory management.
• Comparing contract data with the quarterly budget to make necessary adjustments.

CLM software automates these processes, helping businesses optimize their workflows. By securing contract records and controlling access to them, organizations also ensure data security and privacy.

Renewal

Missing contract renewals can cause businesses to extend unprofitable agreements or lose revenue from contracts that should have been renewed. With a contract lifecycle solution, auto-renewals can be set up, giving managers control over when and how to renew contracts right from the start.

The system tracks contract renewals and expirations, keeping managers informed about each contract’s status. CLM software simplifies the time-consuming tasks of canceling or terminating contracts, turning them into an automated and easy-to-manage renewal process.