Transcript Document

INSTRUCTIONS:
1. Apply your company template to this deck.
2. Delete this header bar when finished.
Contract Lifecycle Management
Improve responsiveness, efficiencies, and oversight
& reduce risks and costs
Contract Lifecycle Management (CLM) is the technology
that allows sales organization to automate the entire contract
lifecycle, from contract creation through amendments and
revisions to e-signature and compliance. Automated CLM
speeds time to revenue, prevents revenue leakage and
reduces risk.
Summary
• Contract Lifecycle Management is becoming increasingly complex
to manage
– More contracts
– More complex contracts
– International contracts & offices
• Solutions exist to help us better manage our contracting process
2
Contract Challenges
• Process issues
• System issues
• Frequent changes
• Too much risk with contracts
3
Process Issues
• Sales team is starting with third-party contracts
• We invest a lot of time reviewing,
amending and approving contracts
• Often it is difficult for us to use consistent, correct
legal language across contracts and over time
• We need to align the legal team with business people
across regions, divisions, etc.
• Lack of continuity and fluidity in our approval
processes with line of business
• Legal is viewed as an obstacle to closing deals
4
System/Process Issues
• Disparate tools
• Reliance on stand-alone Microsoft Office, namely Word
• Information silos (including in the lawyers’ heads)
• Poor visibility into contract terms, obligations & value
• Lack of controls to catch and mitigate errors
• Crude repositories –SharePoint, filing cabinets & PCs
5
Frequent Changes
• Faced with rapidly changing regulations domestically
and internationally
• Constantly updating legal language and policies across
the growing enterprise
• Contract revisions are frequent
• Our rate of mergers and acquisition stresses weak
process and technology
• We’re expanding the pool of lawyers, but that also
introduces changes and affects standardization
• Frequent language changes cause labor intensive
reviews
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INSTRUCTIONS:
1. Remove the risk elements that don’t apply, leave the others even if exact percentages are not immediately known.
2. Enter the risk percentages or estimated percentage range and delete this header bar when finalized.
Too Much Risk in Contracting
 XX% of contracts get contested
 XX% of deal value slips due to contractual issues
(poor approval processes, protracted negotiations)
 XX% of contracts expire without notice
 XX% of contracts can not be easily reviewed/audited
 XX% of contracts are questionable in terms of compliance
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Increase Productivity & Reduce Risk
with Contract Management
• 50% Shorter Contracting Lifecycles
• 25% Higher Contract Renewal Rates
• 1-2% More Revenue
• 30% Lower Administrative Costs
• 2-7% Lower Material/Service Costs
• 55% Stronger Compliance Management
Source: Aberdeen Group’s “Practical Approaches to Contract Management Deployment” (Nov. 2005)
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INSTRUCTIONS:
1. Replace the contents of this slide with your own value calculations. We’ve place some charts and tables that are
representative of typical savings industry analyst associate with contract lifecycle management solutions.
2. If you want to use our detailed Excel calculator to determine value, let us know! Contact [email protected].
3. Remove this header box once you’ve added your estimated value summary chart.
Value to Us
Estimated Value Calculator Summary
Value Area
Shorter Contracting Lifecycles
Higher Contract Renewal Rates
More Revenue
Lower Administrative Costs
Lower Material/Service Costs
Stronger Compliance Management
Industry Norm
50%
25%
1 - 2%
30%
1 - 7%
55%
Our
Estimate
Estimated Value
50% $
25% $
1.5% $
30% $
4% $
50% $
1,000,000
980,000
3,750,000
450,000
2,000,000
1,700,383
$
9,880,382
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These are suggested stages for contract management implementation. Revise where appropriate.
Getting Started / Next Steps
0
6 months
STAGE 1
Initial Assessment
• Identify current contract
processes that work and
identify areas for
improvement
• Begin evaluating contract
lifecycle management
software
• Develop a list of features
and requirements (e.g.,
solution must work on the
Salesforce1 cloud)
STAGE 2
Contract Management
Strategy Development
• Select and implement
contract management solution
• Develop legal playbook,
template and clause library
• Identify and migrate existing
contracts
STAGE 3
Continued Development
• Identify “what works” and “what
doesn't”
• Expand clause and templates as
needed
• Extend to other offices and
locations
• Create advanced workflows and
approvals to further refine your
contracting process
10
Contract Management
• Built on Salesforce1, the most secure and reliable
cloud platform
• Point-and-click modeling keeps up with your
changing business and contracts
• Full capabilities for the entire contract lifecycle –
from contract authoring to compliance
• Advanced usability makes it easy to use standard
legal language across all contracts by just using
Microsoft Word