In the recent In-House Connect webinar “CLM Best Practices for In-House Legal Teams,” industry experts Leah Samia and Garrick Archer, guided by moderator Tom Pratt and presenter Shai Mehani, shared essential insights on Contract Lifecycle Management (CLM) and its transformative impact on legal and sales operations. The session, sponsored by Summize, detailed Icon Science’s CLM implementation journey and practical advice for optimizing contracting processes.

Here are the top five takeaways from the webinar:

Pre-CLM Challenges: Icon Science faced significant inefficiencies with manual processes and using Excel to track contracts. This led to multiple contract versions, discrepancies in legal terms, and frequent complaints about legal processing time. The lack of transparency strained relationships between sales and legal teams. Recognizing these pain points is the first step toward effective CLM implementation.

Impact of CLM Implementation: The adoption of CLM software significantly improved transparency and reduced finger-pointing between sales and legal departments. With standardized practices for contract review times, visibility was enhanced, and blame was mitigated. Leah Samia noted substantial efficiency gains, with inquiries about document locations and completion becoming rare, thus streamlining the sales process.

Selection Criteria and Ease of Adoption: Garrick Archer highlighted that the primary factors for selecting their CLM vendor included functionality, ease of integration with existing software (like Word), and cost-effectiveness. The system’s user-friendly nature meant that the sales team could adopt it with minimal resistance. Leah emphasized the system’s flexibility and seamless integration into Icon Science’s Microsoft and Salesforce ecosystem.

Advice for Implementation: For a successful CLM implementation, Leah advised engaging the sales team early to gather input and ensure seamless integration. Starting with key contracts like NDAs and master agreements can help build the system gradually without overwhelming stakeholders. Garrick recommended mapping out critical contracts and necessary reports for automatic data extraction, thus providing a structured approach to the implementation process.

Role of AI in Contract Management: The session underscored the potential of AI in enhancing contract management. AI tools can quickly extract and summarize contract details, reducing manual reviews. Leah provided a practical example where AI detected a non-compliant payment term in an archived contract, showcasing its efficiency. However, caution was advised, as AI is not yet reliable for legal advice or decision-making.

The webinar shed light on the transformative power of CLM systems for managing contracts more efficiently and transparently. By recognizing pre-CLM challenges, understanding the impact of implementation, selecting the right vendor, following best practices for implementation, and leveraging AI, in-house legal teams can significantly enhance their contract management processes.

Missed it? You can watch the recording via IHC On-Demand!