What is Contract Lifecycle Management
Frequently Asked Questions.
CLM Matrix receives many questions about our contract lifecycle management software products and things to consider with contract management initiatives.
To help you become better informed, below are some of the most frequently asked questions to help you in your efforts to make the contracting process a source of competitive advantage for your organization.
What is Contract Lifecycle Management.
Today, most organization’s contract processes are defined by fragmented procedures, labor intensive processes, poor or no visibility into contract terms and conditions, ineffective compliance management and governance, and inadequate performance analysis.
Contract Lifecycle Management is applying technology to standardize
streamline and automate contract initiation, creation, negotiation, execution through to expiration.
By doing so organizations are finding that they can cut contract cycle times by 50-80% with improved standardization, control and visibility of their entire contract portfolio.
These improvements lead to lower procurement costs, increased revenue, reduced customer migration, improved compliance, lower risk and an overall gain in employee productivity.
How does CLM MATRIX differ from other products on the market
CLM Matrix is the ONLY CLM product built exclusively on the Microsoft Office technology platform.
CLM Matrix delivers the rich functionality expected in a CLM solution including wizard-driven configuration flexibility for rapid deployment and for making changes quickly as your business and processes evolve and improve over time.
Matrix Enterprise is the only system with a clause-based architecture versus a template-based architecture thereby drastically decreasing administration costs for term and condition governance.
CLM Matrix leverages the desktop tools in use today by your organization
its suppliers and customers.
Why is a product built upon the Microsoft Office technology platform important
When users first experience a new tool they embrace ones that help them to do their work, are intuitive to use and familiar looking.
In addition, our research indicates Information Workers involved in the contract process want to work natively in MS Word and perform workflow with Outlook e-mail.
CLM Matrix then allows users to work with tools in which they are trained and confident
User acceptance is high.
Training costs are minimal.
Integration with MS Office is unnecessary.
Support costs are negligible.
What Microsoft products will I need to use CLM MATRIX.
CLM Matrix is built upon the Microsoft Office technology platform in which most organizations are currently invested.
Consequently the additional software required for CLM Matrix is usually already deployed or covered under an existing Enterprise Agreement with Microsoft.
This question comes up frequently and upon research always becomes a non-issue because of the minimal cost and/or the immediate value created by CLM implementations.
CLM Matrix recommends that users have Microsoft Office 2013 and Google Chrome or Internet Explorer 11.0 or higher.
The organization will also need SharePoint Portal Server, Exchange Server, Windows Server, and SQL Server.
What are other organizations doing with CLM
Organizations typically fall into 3 broad categories of interest: Repository – the organization wants a place to store/organize contract data and is simply looking to get their arms around their current contract portfolio.
They are not looking for advanced CLM features for contract initiation
creation or workflow.
Quick Win – the organization is looking to solve a particular pain point for a specific contract type and process.
They may require more comprehensive features for the complete lifecycle including contract initiation, creation, negotiation, execution and expiration.
Enterprise – the organization is taking a comprehensive approach for standardizing, streamlining and automating the entire contracting process for a particular business unit or the entire organization.
The approach and investment is entirely dependent on the unique needs of the organization and an approach that may have worked best for them on past process improvement automation projects.
Where in my organization should I get started with CLM
Generally, the best place to start is where there is business pain and a supportive leader.
This provides motivated users, quick wins and an ROI likely to be measured in weeks versus years.
Can CLM Matrix help my organization define its contracting process
CLM Matrix offers contract process consulting services separately or as part of a full engagement.
We apply both our experience and proprietary tools to help any organization define its process and apply best practices prior to automation.
As we like to say… if you automate a bad process you just end up with a faster mess.
How can I justify a CLM project to secure funding from my organization
Every organization is unique in what it requires to make a business case to approve investing in something.
Regarding CLM, seldom do we come across an organization that currently employs a contract process that is well defined, efficient and automated.
Unfortunately, most contract processes are in place by default, not by design.
For this reason it is usually easy to discover 3-5 key areas of improvement that can support a profitable investment in CLM.