Buying Tips For Legal Contract Lifecycle Management Software

Legal operations professionals keep tabs on software needs in the law department, often running audits to determine which software is obsolete and which needs to be purchased. In this article, we look at buying tips for legal contract lifecycle management software, define legal contract lifecycle management (CLM), and pose several tips on purchasing legal contract lifecycle management software for the legal and legal operations teams.

Various professionals and departments across different industries use CLM software. In the legal field, paralegals, lawyers, legal assistants, and legal operations professionals use it to manage contracts efficiently. Additionally, procurement teams, sales departments, compliance officers, and finance teams often use CLM software to streamline contract processes, ensure compliance, and improve collaboration across the organization.

What is Legal Contract Lifecycle Management Software

Contract Lifecycle Management software is a digital solution designed to manage the entire lifecycle of a contract, from creation and negotiation to execution, compliance, and renewal. It automates and centralizes contract processes, providing a comprehensive platform for managing legal agreements efficiently.

Legal contract lifecycle management software is a powerful tool that can streamline the stages in the contract lifecycle, enhance compliance to contract terms and conditions, and also help the legal team mitigate risk associated with contract management. With this digital and automated solution, productivity improves throughout the legal department. There is more collaboration during contract development and execution, and errors are also reduced with legal contract lifecycle management software.
However, for legal operations professionals unfamiliar with its value, understanding what to look for when purchasing CLM software is crucial.

Legal Contract Lifecycle Management Features

CLM software should integrate with enterprise legal management solutions. This integration provides beneficial productivity for users as they can log into the ELM dashboard and access the CLM application from the same location.

• CLM with extractive AI is an advanced feature that more robust CLM solutions offer. Users can extract up to 75 clauses and 55 fact types to draft contracts with winning terms. This is beneficial so that the best contracts can be readily accessible and re-purposed for future contract drafting.
• A Word add-in should be standard in the CLM dashboard. Advanced and integrated enterprise legal management solutions allow for contract versions drafted to be drafted in Word to with each version tracked and recorded. This all happens in one dashboard with documents easily accessible.
• Contracts to matter linking is something that legal operations professionals should explore when purchasing legal contract lifecycle management software. This feature reduces the time lawyers need to locate a missing contract when working on a matter. Opening a matter in an ELM dashboard shows the contract automatically linked, creating efficiencies.
• Blockchain contract capability, particularly through smart contracts, is still developing but shows promise for enhancing security and transparency. While it's gaining traction, widespread adoption in contract management is still on the horizon, and trust in its reliability is growing as the technology matures.
• Using agentic AI and legal assistants are nascent but becoming more popular with advanced technologies being developed. Some features of contract management may work well with agentic AI.

Legal Contract Lifecycle Management Software Benefits

Several of the benefits of CLM software are mentioned previously, but this list is more comprehensive:

• Increased Efficiency: Repetitive tasks are automated, which reduces the manual effort and thus speeds up contract processes.
• Enhanced Compliance: Ensures adherence to legal and regulatory standards through automated alerts and compliance checks.
• Improved Visibility: Offers a centralized repository for contracts, providing easy access and better tracking of contract status and obligations.
• Risk Mitigation: Identifies potential risks and ensures that contracts are aligned with organizational policies.
• Cost Savings: Reduces administrative costs and minimizes the risk of costly errors or missed deadlines.

Legal Contract Lifecycle Management Software Advantages

Beyond the features and benefits of the software, legal operations professionals can study the advantages and find:

• Improved Workflows with simplified contract processes that remove some of the complexity. Legal teams can focus on strategic tasks instead of the administrative aspect of contract management.
• Better collaboration among the legal team and business stakeholders aligns everyone about the goals and outcomes of the contract.
• Leadership benefits from data-driven insights from contract analytics and reporting tools. This enables informed decisions and optimized contract strategies.
• Enhanced analytics from the integration of enterprise legal management with legal contract lifecycle management software.

Tips for Purchasing Legal Contract Lifecycle Management Software

Buying any software requires legwork before making the purchase. Factors like ease of use, scalability, integration capabilities, and vendor support should be considered. The application should be evaluated for your industry to meet specific legal and regulatory requirements. More specifically:

• Assess Your Needs: Before purchasing, evaluate your organization's specific requirements. Consider the volume of contracts, integration needs with existing systems, and the level of customization required.
• Conduct an audit. Question the legal team and other potential software users about their needs.
• Evaluate Vendor Expertise: Choose a technology provider with a proven track record in the legal industry. Look for expertise in handling legal contracts and a strong customer support system.
• Consider User Experience: Opt for software that is user-friendly and intuitive. A complex system can lead to low adoption rates and hinder productivity.
• Plan for Deployment: During deployment, ensure a clear implementation plan. Involve key stakeholders and provide adequate training to ensure a smooth transition. Appoint someone to take point on the deployment and liaise between the organization and the solution vendor. There will be a lot of back-and-forth communication between the parties.
• Review Post-Implementation Support: After deployment, assess the vendor's support services. Ensure they offer ongoing support, updates, and training to maximize the software's value. Look at the level of services provided by the vendor. Ensure there is a clear path to growth and scalability with the software. Not every organization uses all the features and functions right out of the gate. Knowing there is opportunity to upscale is important.
• Ongoing Training: This is a critical component of software installation and deployment. Users need training from a credible source on how to use the software, and having courses available on-demand, in person or virtually helps educate users.
• Professional Services: A technology provider should have a team of professional services experts who seek ways to work with customers and help them grow and use the software to advance their maturity. Data derived from the software should be put to analytical use for leadership to make strategic decisions. Other programs can be initiated with the software manufacturer because they are in a unique position to know the software inside and out.

Investing in legal contract lifecycle management software can transform legal operations, but making the right choice requires careful consideration. By understanding the benefits and following these essential buying tips, legal operations professionals can select a solution that enhances efficiency, compliance, and collaboration within their departments. Schedule a demo to learn more.