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