What Is Contract Lifecycle Management? CLM 101 Guide

Ever signed a contract and then completely forgotten about it? You're not alone. In the whirlwind of day-to-day business, contracts often become buried treasure—valuable, but hidden and forgotten. 

That’s where contract lifecycle management (CLM) comes in handy.

Contract lifecycle management tools and processes, like Worksuite’s contract lifecycle management software, keep your papers in order. They turn contracts into living, breathing assets that work for you (not against you). A missed deadline or an overlooked clause isn't just an "oops" moment—it's potentially thousands of dollars down the drain and a lawsuit on your plate.

Fortunately, we can help.

Below, we’ll walk you through everything you need to know about contract lifecycle management to transform your contract chaos into a well-oiled machine.

What is contract lifecycle management (CLM)?

Contract lifecycle management is a comprehensive approach to handling contracts from start to finish. It encompasses every stage of a contract's life, ensuring nothing gets overlooked, including contract execution and contract reviews.

It’s all about writing the contract, defining terms, and setting conditions. Then, after contract negotiations and approval, it needs to be stored in a safe (but accessible) location like a central repository. While this process might sound straightforward, businesses and legal teams often face several challenges that make managing contracts a headache:

• Keeping track of numerous contracts at different stages
• Guaranteeing all necessary stakeholders are involved at the right times
• Meeting deadlines and avoiding costly oversights
• Maintaining consistency across different contracts
• Staying compliant with changing regulations
• Extracting valuable insights from contract data

These challenges can lead to missed opportunities, unexpected costs, legal issues, and strained business relationships. 

Stages of contract lifecycle management

Each stage plays an important role in turning your agreements from pieces of forgotten paper into powerful tools that drive your business forward. Let's break down these stages and see how they work together to create a seamless contract lifecycle management process:

1. Contract creation and drafting

This stage involves identifying the need for a contract and creating the initial draft. It's about clearly defining terms, conditions, and expectations. With Worksuite, you can leverage standardized templates to create contracts, maintain consistency, and reduce the time spent on drafting.

2. Negotiation and approval

Now, it's time to fine-tune your agreement. This stage involves back-and-forth communications, revisions, and compromises. It's where you iron out the details and ensure all parties are satisfied. Worksuite streamlines this process by providing a centralized platform for discussions and version control, ensuring compliance.

3. Execution and storage

The moment of truth arrives. Contracts are signed, sealed, and delivered—or in the digital age, electronically signed and securely stored in a central repository. Worksuite's digital signature integration makes execution easy, while our secure storage guarantees your contracts are safe and accessible when you need them.

4. Compliance and performance tracking

The contract is signed, but the work isn't over. This ongoing stage is about making sure all parties live up to their end of the bargain. It involves monitoring deadlines, deliverables, and payment schedules. Worksuite's automated contract alerts and tracking features help you stay on top of contractual obligations.

5. Renewal, amendments, and termination

As contracts near their end date, decisions need to be made. Do you renew, amend, or terminate? This stage requires evaluating the contract's performance and your future needs. Worksuite provides insights and reminders to help you make informed decisions, supported by an audit trail that tracks all contract activity.

Benefits of better contract lifecycle management

Implementing an effective contract lifecycle management solution isn't just about keeping your paperwork in order (though, it does do that). It's a strategic move that can significantly impact your bottom line and streamline your operations:

• Reduced risk: Better visibility and control over your contracts help you avoid compliance issues, missed deadlines, and potential legal disputes.
• Increased efficiency: Automating routine tasks and streamlining workflows free up your team to focus on high-value activities rather than chasing paperwork.
• Cost savings: Improved contract management can lead to better negotiation outcomes, fewer errors, and the ability to capitalize on volume discounts or early payment terms.
• Compliance: Stay on top of regulatory requirements and internal policies to reduce the risk of fines or reputational damage.
• Better decision-making: With all contract data centralized and easily accessible, you can make more informed decisions about renewals, terminations, and future agreements.
• Improved audit trails: Maintain a clear record of all contract-related activities, making audits smoother and providing valuable insights for future improvements.
• Greater visibility: Get a bird's-eye view of all your contractual obligations and rights to help you better strategize and plan.

How to streamline CLM with Worksuite

Worksuite transforms your contract management process from chaotic to seamless. Here’s how our platform helps tackle each stage of the contract lifecycle and make your life easier.

• Effortless contract creation: Use customizable templates and collaborative tools, with guided recommendations and version tracking to keep everything organized.
• Smooth negotiations: Navigate discussions easily using real-time editing, commenting, and approval workflows. Keep a clear audit trail of all revisions and discussions to streamline the path to agreement.
• Secure execution and storage: Sign deals quickly with integrated e-signatures, then store them securely in our cloud with bank-level encryption. Retrieve any contract in seconds with powerful search features.
• Compliance and performance tracking: Stay on top of obligations with automated reminders and performance dashboards. Receive real-time alerts for any potential issues.
• Seamless renewals and amendments: Make informed decisions with proactive renewal notifications and easy amendment processes. Leverage performance analytics to guide your choices—whether you're renewing, amending, or terminating.

Why use Worksuite’s CLM tools

With everything else you have going on, managing contracts can feel like herding cats. We get it—that’s why we built a one-stop platform to streamline contract workflows for both freelancers and businesses. Here’s how it helps:

• Unified ecosystem: Worksuite isn't just about contracts. It's a comprehensive platform that integrates contract management with talent pools, task management, invoicing, and payments. This means no more juggling multiple apps or losing information in the handoff between systems.
• Tailored for modern work arrangements: Whether you're a growing business or an enterprise managing a fleet of contractors, Worksuite adapts to your needs. Our platform is built with the flexibility of today's work relationships in mind.
• Streamlined onboarding: Create, send, and store contracts all in one place, linked directly to project details and payment terms. And for freelancers, accepting new gigs and managing multiple clients has never been easier.
• Transparent collaboration: With Worksuite, both parties have clear visibility into contract terms, project progress, and payment schedules. This transparency builds trust and reduces misunderstandings (leading to smoother working relationships).
• Automated workflows: Worksuite automates routine tasks—from contract renewal reminders to invoice generation based on contract terms. This means less admin work and more time focusing on what really matters: getting the job done.
• Compliance made easy: Stay on top of regulatory requirements and internal policies. Worksuite helps guarantee that all your contracts and working relationships are compliant, reducing risk for both businesses and freelancers.
• Scalability: Our platform can handle everything from one-off projects to complex, long-term contract management for large teams.
• Data-driven insights: Gain valuable insights into your contract performance, freelancer relationships, and business operations. Use this data to make informed decisions and improve your processes.

Simplify your entire contract lifecycle

Contract lifecycle management touches every aspect of your business relationships—from the first draft to the final signature and beyond. However, it doesn’t have to be a headache-inducing nightmare. With Worksuite, you can simplify the entire process to transform how you work with freelancers, contractors, and business partners.

Worksuite's all-in-one platform brings together every tool you need to master your contract lifecycle. From creation to completion, for one-off projects or long-term partnerships, we've got you covered.