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.
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. Why CLM:
• Increase contract visibility
• Streamline business processes
• Eliminate risks
• Ensure compliance
• Improve profitability
10 Common Pitfalls of Contract Management Implementation
5. If implemented
improperly:
10 Common Pitfalls of Contract Management Implementation
• Stalled contracting cycles
• Low system adoption
• Runaway project costs
6. 10 Common Pitfalls of Contract Management Implementation
Here’s what to avoid
so you don’t lose contracts to the void…
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. 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. 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 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. 10 Common Pitfalls of Contract Management Implementation
Pitfall 3:
Changing your process
mid-implementation
Danger:
• Extended time frame
• Increased costs
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. 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. 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. Pitfall 5:
Standardizing contracts
after implementation
Danger:
• Wasted time
• Excess expenses
• Unnecessary work
10 Common Pitfalls of Contract Management Implementation
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. 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. 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. 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. 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. 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. Pitfall 8: Avoiding hard deadlines
10 Common Pitfalls of Contract Management Implementation
Danger:
• Increased costs
• Frustrated users
• Lengthened implementation
periods
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. 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. 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. Pitfall 10: Not communicating with
implementation manager
10 Common Pitfalls of Contract Management Implementation
Danger:
Molehills turn
into mountains
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. 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.