When talking with customers, we regularly hear that one of the most challenging steps in transforming contract management is convincing stakeholders that a modern, robust contract lifecycle management system is worth the time and money. Sure, a CLM solution will bring time and money savings, but business leaders may not know the extent to which poor contracting management processes harm the business.
A study by WorldCC (formerly IACCM) discovered poor contract management is costing organizations 9-percent of total annual revenue. If that staggering number isn’t enough to motivate CFOs, then perhaps a more company-specific approach is necessary.
That was the approach Morgan Walt, manager of global sourcing and procurement at Russell Investments, took at the investment firm. In last week’s webinar, Morgan outlined how she highlighted not only cost savings, but how a CLM system could significantly reduce contract risk by preventing unwanted contract renewals and ensuring legal and regulatory compliance.
Three ways to secure stakeholder buy-in for a CLM system:
- Gather data on contract failures: Morgan accomplished this by adding any unwanted renewals or contract management issues in a folder in her email inbox. Then she presented on the failures.
- Document the workflow and process: note the time each step takes and where the process typically breaks down. You may be surprised how difficult it is to define a clear process.
- Gather feedback or survey other business users: the more data you can gather about the time required, delays, or contract management issues, the better case you can make for stakeholders.
For more, watch Morgan’s full presentation below, originally presented at this year’s virtual IACCM Vibe Summit.
IACCM is now World Commerce and Contracting
If you haven’t heard, IACCM has changed its name to World Commerce & Contracting (WorldCC) and launched a brand-new website at www.worldcc.com.