How to identify CLM software stakeholders and secure buy-in

Contract lifecycle management (CLM) solutions have emerged as vital tools for ensuring efficiency, compliance, and overall organizational harmony; just look at the 55% of global legal departments that have invested in it. However, implementing any new technology, especially one as impactful as CLM, is a significant step both towards and requiring collaboration within an organization.

The success of such a project hinges on identifying key CLM software stakeholders and securing their buy-in. Without the support of these crucial players, even the most advanced CLM solutions can falter.

Read on for a comprehensive guide to pinpointing your stakeholders and effectively engaging them in the CLM implementation journey.

Identifying key CLM software stakeholders

The first step in implementing a CLM system is to identify the stakeholders who will be instrumental in the decision-making process. Each group has unique concerns and contributions, making it imperative to address their specific needs and expectations.

Here are the main groups you need to consider:

End users

End-users are the individuals who will interact with the CLM system daily. This critical group of CLM software stakeholders typically includes sales teams processing contracts, legal professionals handling compliance, and procurement teams negotiating terms. Their feedback is invaluable because they understand the intricacies of the current contract management processes and can highlight specific needs and pain points.

How to gain end-user support:

1. Involve them early (even the detractors!)

Engage end users at the beginning of the project to gather their requirements and preferences, ensuring the implementation won’t overlook how to make their transition as smooth as possible.

Pro tip: Be sure to include end users who are either skeptical themselves or represents someone else who is skeptical. This not only helps increase buy-in across the organization when adoption time comes, but it also allows you to work with someone who would ask questions and explore potential pitfalls that could be looked over in initial excitement. Befriending your detractors also allows you to find out who your solution might NOT work for, and ensures that your new process is only helping, not hindering operations.  

2. Demonstrate the benefits

Show end users how the CLM system will streamline their work, reduce manual errors, and enhance productivity.

Budget owners

Budget owners, often finance leaders or C-suite executives, oversee the company’s financial health and ensure that expenditures align with strategic goals. To secure their buy-in, emphasize the Return On Investment (ROI) and other financial benefits of the CLM system.

How to gain budget-owner support:

1. Highlight cost savings

Explain how the CLM system can reduce costs by improving efficiency and reducing manual labor.

Pro tip: Effective contract management can significantly impact your bottom line. According to research by World Commerce & Contracting, good contract management can save a company up to 9% of its annual revenue.

2. Showcase the ROI

Present data-driven insights demonstrating potential productivity gains and cost reductions. For example, MGI Research recently conducted a comprehensive assessment of Agiloft’s ROI, interviewing companies that have implemented the software to gather key investment and outcome metrics. The findings reveal that Agiloft’s CLM can generate substantial ROI, generally exceeding 100%. 

Decision-makers

Decision-makers are the champions of the project who lead the charge and drive the initiative forward. They could be department heads or other senior leaders. Educating them about the benefits of the CLM system tailored to their needs is crucial.

How to gain decision-maker support:

1. Provide clear information

Arrange discussions and demonstrations with vendors to clarify how the software can address specific challenges.

2. Align with strategic goals

Demonstrate how the CLM system supports the organization’s broader objectives. Keeping up with the competition is essential, and the most responsive player often wins. A robust CLM platform provides a competitive advantage in negotiations by ensuring that you have all the necessary information at your fingertips.

Legal teams

Legal teams are critical stakeholders in the implementation (and selection) of a CLM system. They are responsible for ensuring compliance with legal standards and managing contractual risks, making their support and input essential.

How to gain Legal’s support:

1. Focus on risk mitigation

Legal professionals prioritize minimizing risks associated with contracts. Talk about how the CLM system can help identify potential legal issues early and minimize the likelihood of contractual disputes. (Related: 9 risks of bad contract management that you can’t afford.)

2. Bring up detailed reporting

Legal teams often need to generate reports for compliance audits and internal reviews; leverage on this pain point with the capabilities of a CLM platform.

IT

The IT department’s primary concern is security and system integration. Engaging them early ensures the chosen CLM solution meets all technical requirements.

How to gain IT’s support:

1. Address security concerns

Given the sensitive nature of legal documents, it’s natural to be worried about how a CLM can ensure your contract data remains private. There’s a multitude of vendors in the marketplace, which makes choosing the right contract management solution a daunting task, especially when considering a vendors’ security practices. 

For example, Agiloft employs a multi-layered approach to data security. This includes robust encryption techniques for data both in transit and at rest, strict access controls and strong authentication methods, regular data backups, and well-defined recovery strategies in case of incidents. We follow NIST principles and stay up to date on security best practices to ensure that we continuously protect our customers. 

2. Ensure compatibility

Discuss how the CLM system will integrate with existing IT infrastructure and get ahead of any potential issues.

Sales

Sales teams handle numerous contracts, making them direct beneficiaries of a CLM solution. Their involvement can turn them into strong advocates for the project.

How to gain Sale’s support:

1. Demonstrate efficiency gains

Show them how the CLM system can accelerate deal cycles and integrate seamlessly with their existing tools. For example, Health Catalyst accelerated its sales and legal processes with automated CLM, resulting in faster deal closures. By streamlining contract approvals, you can ensure that deals are finalized quickly and efficiently, giving your sales team more time to focus on closing new business. 

2. Cite relevant statistics

Highlight industry data, such as the fact that 57% of major companies experienced less positive revenue and 50% faced lost business opportunities — both due to inefficient contracting processes.

Building your business case for CLM

Creating a compelling business case is essential for securing stakeholder buy-in. Here are just a few ways to build a successful business case that illustrates the criticality of purchasing a robust CLM platform:

• Leverage case studies: Referring to successful case studies will build credibility. For instance, CDW’s global implementation of Agiloft’s modern contract system demonstrates effective change management and highlights the transformative impact of CLM software. Real-world examples provide validation of the benefits you’re advocating.
• Address specific pain points: Tailor your proposal to address the unique pain points of each stakeholder group. For instance, focus on compliance and risk mitigation for legal teams, cost savings for Finance, and time efficiency for Sales. Personalized messaging makes your case more relevant and persuasive.
• Plan for implementation: Outline a clear implementation plan including timelines, milestones, and resources required. Assure stakeholders of a structured rollout process supported by a dedicated implementation team, and emphasize ongoing support and training to ensure smooth adoption and long-term success. Be aware that change management done right will make the implementation a success.

In conclusion

Identifying and engaging the right CLM software stakeholders is a structured process requiring strategic communication and a clear understanding of each group’s concerns and priorities. By addressing the specific needs of end users, budget owners, decision makers, finance teams, sales teams, IT departments, and procurement teams, you can build a strong coalition to support the successful implementation of your chosen CLM system.

Ready to identify CLM software stakeholders and secure buy-in? Learn more about building a successful business case for CLM.