Harnessing the Power of CLM: Why Knowing Your Audience and Calculating ROI are Critical for Success
According to an analysis by WorldCC, simple complexity contracts cost around $6,900, medium complexity contracts cost $21,300, and complex contracts
can cost up to $49,000. Conveying these powerful statistics is an important aspect of convincing stakeholders at your organization that smart Contract Lifecycle Management (CLM) software is valuable. In our first post for this series, we discussed the startling cost of mismanaging contracts, including increased costs,
lost revenue, and wasted time. This week we share why knowing your audience and calculating the Return on Investment (ROI) is critical as you build a business case for CLM technology.
Every role in the organization has different responsibilities, yet all will benefit directly or indirectly from improved contract management. Understanding their pain points and identifying the respective benefits helps secure buy-in from your teammates across the organization. This ultimately helps your cause move faster and create more positive change management.
Below is a quick look at a few business roles and the benefits of contract management for them. For a complete list of roles and benefits, download ContractPodAi’s Building a Business Case guide.
Once you’ve established a comprehensive list of why your stakeholders will appreciate a CLM platform, you’ll likely need to provide some financial considerations, including ROI. We all know that ROI can be challenging to prove, but every technology purchase requires that ROI be discussed (if not required). Why would a company agree to make a significant investment without the assurance that it is financially strategic as well?
Proving ROI for CLM is a clear way to influence decisions. ContractPodAi provides two resources to help you discover simple ways to do this. First, you can download our Building a Business Case guide which offers a step-by-step approach for obtaining buy-in and instilling confidence to initiate an improved, streamlined, and more intelligent contract management. It includes tips to demonstrate ROI across departments and teams.
Secondly, we offer an ROI calculator that considers the size of your legal team, the number of new contracts (annually), the average contract term, and the percentage of standard vs. complex agreements. The calculator can leverage these details to estimate the total ROI of a CLM investment.
Coupling ROI and segmenting the business of CLM by role will help you seek approval for technology investment. But there’s still more you can do….next week, we’ll look at the bigger picture of CLM, both now and in its future. And why your organization needs to act now to start saving, improve contact management, reduce risks, and grow your bottom line.
Request a demo
Contact us today for your personalised demo.