10 Contract Management Implementation Pitfalls | Selectica

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You may be chomping at the bit to get started with contract management, but without the proper building blocks in place, implementations can lead to problems like protracted go-lives, poor system adoption, and runaway project costs. This guide will shed light on the most common implementation pitfalls companies face and suggest strategies and tactics to prevent them.

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10 Contract Management Implementation Pitfalls | Selectica

  1. 1. Common Pitfalls of Contract Management Implementation A Survival Guide
  2. 2. So you’ve decided contract lifecycle management (CLM) is right for you and your business… And for good reason. 10 Common Pitfalls of Contract Management Implementation
  3. 3. Why CLM: • Increase contract visibility • Streamline business processes • Eliminate risks • Ensure compliance • Improve profitability 10 Common Pitfalls of Contract Management Implementation
  4. 4. 10 Common Pitfalls of Contract Management Implementation BUT
  5. 5. If implemented improperly: 10 Common Pitfalls of Contract Management Implementation • Stalled contracting cycles • Low system adoption • Runaway project costs
  6. 6. 10 Common Pitfalls of Contract Management Implementation Here’s what to avoid so you don’t lose contracts to the void…
  7. 7. Pitfall 1: Excluding key stakeholders Danger: • Unnecessary starts and stops • Meandering user requirements • Needs won’t be met 10 Common Pitfalls of Contract Management Implementation
  8. 8. 10 Common Pitfalls of Contract Management Implementation Build a team that includes: • Subject matter experts from affected departments (finances, sales, legal, executive team) • IT and technology stakeholders Schedule demos of contract management solutions with each team early in the process to find out the “must haves” for each group. Avoid it!
  9. 9. Pitfall 2: Project pilots 10 Common Pitfalls of Contract Management Implementation Danger: • Pilots don’t save time • Can unnecessarily increase costs • Can delay go-live date Plus… You may get lost in user-testing limbo forever and lose stakeholder enthusiasm
  10. 10. 10 Common Pitfalls of Contract Management Implementation • Understand what you cant/can’t accomplish with a pilot program • Be confident in your selected solution • Stick to your go-live goal • Create staging environment for proof of concept Avoid it!
  11. 11. 10 Common Pitfalls of Contract Management Implementation Pitfall 3: Changing your process mid-implementation Danger: • Extended time frame • Increased costs
  12. 12. 10 Common Pitfalls of Contract Management Implementation Avoid it! Identify current process gaps beforehand • Begin with the question, “What do we need our system to do?” Give your implementation team detailed notes • Your solution can always be configured with pain points in mind
  13. 13. Pitfall 4: Over-engineering the system 10 Common Pitfalls of Contract Management Implementation Danger: • System becomes too difficult to use • Users become annoyed • Management mechanisms become too complicated (i.e., too many alerts)
  14. 14. 10 Common Pitfalls of Contract Management Implementation • Keep alerts in alignment with current signature process • Consider ahead of time how to engineer alerts • Only send alerts to certain people or groups Avoid it!
  15. 15. Pitfall 5: Standardizing contracts after implementation Danger: • Wasted time • Excess expenses • Unnecessary work 10 Common Pitfalls of Contract Management Implementation
  16. 16. 10 Common Pitfalls of Contract Management Implementation Create data fields for information you fill in on current contracts • Ex: dates, amounts, products, service types, etc. Consider metadata fields • Ex: contract author, who requested contract, etc. Avoid it!
  17. 17. 10 Common Pitfalls of Contract Management Implementation WARNING Some documents may need to be modified in order to best utilize software. But, standardizing documents saves time in the long run.
  18. 18. Pitfall 6: Getting bogged down by legacy documents 10 Common Pitfalls of Contract Management Implementation Danger: • Being slowed down cataloging contracts • Ballooning budget • Extending implementation deadline
  19. 19. 10 Common Pitfalls of Contract Management Implementation Avoid it! Consider these questions: • Does your company need only current, active contracts? • Is there a cutoff date for legacy data? • How are old documents stored? • What data needs to be extracted?
  20. 20. Pitfall 7: Taking the “Big Bang” approach to implementation Danger: • Frustrating system users • Building up resentment toward solution before implementation is completed 10 Common Pitfalls of Contract Management Implementation
  21. 21. 10 Common Pitfalls of Contract Management Implementation Employing a phased approach to implementation enables: • Faster rollout • Demonstrable ROI • Higher adoption rates • Increased end-user satisfaction • Incorporation of feedback at next stage Avoid it!
  22. 22. Pitfall 8: Avoiding hard deadlines 10 Common Pitfalls of Contract Management Implementation Danger: • Increased costs • Frustrated users • Lengthened implementation periods
  23. 23. 10 Common Pitfalls of Contract Management Implementation Consider practical factors when setting date • When does the quarter end? • Is expiration of current system an issue? Communicate date early and often Avoid it!
  24. 24. Pitfall 9: Solving for symptoms rather than the problem Danger: • Not taking a holistic approach to CLM results in shortchanging your system • An under-utilized system means money wasted 10 Common Pitfalls of Contract Management Implementation
  25. 25. 10 Common Pitfalls of Contract Management Implementation Avoid it! Consider these points: • Document goals early on • Know how to use chosen system in a variety of ways • Consider solutions that address more than just isolated incidents
  26. 26. Pitfall 10: Not communicating with implementation manager 10 Common Pitfalls of Contract Management Implementation Danger: Molehills turn into mountains
  27. 27. 10 Common Pitfalls of Contract Management Implementation Keep the implementation team in the loop about: • User training • Issues with system • New release features Avoid it!
  28. 28. 10 Common Pitfalls of Contract Management Implementation Thank you Learn about Selectica CLM software at Selectica.com. Find the full version of this guide here.

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