From pitch to approval: how to craft a stellar CLM business case 

In the world of Contract Lifecycle Management (CLM), we find a quintessential challenge faced by modern organizations: managing complex processes with old tools and even older habits. In a recent webinar, two industry veterans from Bissel Homecare and Amerisure Insurance shed light on their CLM journey – from making a business case for the software investment to strategies, challenges, and successes in navigating this process. Here’s a closer look at their lessons learned. 

Realizing the need 

Every transformation journey begins with a realization of inefficiency. As Heather Drouin, Commerical Counsel at Bissell, put it: “We managed contracts manually through several different systems… it became clear that we needed something that combined everything in one.” And yes, email and spreadsheets were being used and scattered across the organization. Managing contracts manually through fragmented systems simply wasn’t cutting it – a fate shared by many organizations.  

Matt Latham, Purchasing Manager at Amerisure, came at it from a different direction, noting their CLM need began when they pulled together a cross-functional team. “This team included Legal, Procurement, internal audit, Finance, Project Management, and Data Security. And we wanted to find a way to strengthen the business owner’s connection to the agreements that they put in place to do their business.” 

The pressing need for a flexible platform that would bring clarity and order to the chaotic world of contract management was clear. 

How to build a business case for CLM software 

Now to the fun part – how did Heather leverage simplicity and strategy to craft a business case? Building a compelling CLM business case involves more than just listing CLM software benefits; it’s about clear, strategic thinking and simplicity in communication.  

Heather advised: “Stick to your current problems, what you’re solving, and make sure it’s a flexible option.” Simplicity helps avoid the analysis paralysis that can stall projects.  

Matt offered a tactical edge with a focus on quick wins to avoid overwhelming decision-makers: “I think the biggest pitfall people can fall into is overwhelming the decision makers with the hundred things you’re going to do better with this new solution.” Concise and focused pitches translate complex needs into actionable steps, making it easier for leaders to say yes. “Send a couple of key wins that can get you quickly with solution,” adds Matt. 

CLM implementation and customization 

Interestingly, both experts revealed divergent paths in their implementation journeys. Adopting a new system can be daunting, but Heather’s approach was straightforward: “I really kind of guilted people into it. We required everybody to use Agiloft for every single contract from day one,” she said, an approach that reflected decisiveness and risk-taking.  

Matt’s team jumped right into user adoption as well. “We launched almost completely out of the box and then built our own customizations along the way,” he said.  

Does this mean “fortune favors the bold?” In Heather and Matt’s case, it highlights an essential truth in business transformations – there is no one-size-fits-all approach; a flexible and modern solution is key. 

Feedback is the secret sauce 

Once up and running, listening to your team’s feedback can be crucial for success. Heather reflected on her approach: “I made myself available to teach them…as much as I could…really encouraged them to use it.” She also kept track of all the feedback that was shared with her. When they were able to make changes, her team would reach out to them and talk to them more about their concerns and see what they could do to accommodate these concerns. 

For Matt, feedback was also a crucial part of their CLM journey: “It was crucial to get an understanding from the business of what kind of features would make it easier to engage in these agreements.” By understanding what certain features different types of teams needed made the business case much easier. “Feedback added some easily understandable meat to the to the pitch for CLM,” added Matt. 

The role of AI and the path forward 

Looking ahead, both Heather and Matt acknowledged the growing importance of AI within CLM tools. Heather noted, “We have implemented AI within Agiloft,” focusing on how it contributes intelligently to solving current inefficiencies like writing contract descriptions. 

Matt urges openness to AI’s potential, advising that CLM business cases now need to consider AI’s capabilities: “Decision makers likely have preconceptions about AI.” By carefully integrating AI into the CLM process, organizations can stay ahead in the evolving landscape of contract management. “AI is going to be a critical component,” added Matt. By planning for AI capabilities from the beginning, organizations can future-proof their CLM solutions. 

Sealing the deal 

The process of crafting a business case for CLM is intricate, requiring a clear understanding of current challenges and a strategic, phased approach to achieving buy-in and successful adoption. By learning from the experiences of leaders like Heather and Matt, organizations can better navigate this journey to achieve significant benefits in contract management and beyond. 

Missed the action? Watch Heather and Matt’s discussion on-demand here.