Crunching the numbers: Using CLM metrics to drive success

In July, Agiloft users gathered for their quarterly coffee chat, where they share tips, tricks, and challenges that they’re experiencing in and around their contract lifecycle management (CLM) system. This session focused on CLM metrics and what you can learn from those numbers.  

The insights shared among peers fostered a dynamic discussion about the different metrics that you could and should be tracking in and around your CLM.  

Here’s what those Agiloft power users had to say:  

What CLM metrics should you be monitoring? 

Agiloft breaks down CLM data into four distinct types: data that focuses on the contracting process, the content within your contracts, their adherence to their commitments, and the combination of the three that empowers you to make informed business decisions. 

In this blog, we’ll breakdown contract process data, the different metrics you should be keeping an eye on, and, ultimately, how to use them.  

Process performance metrics 

You implement CLM for a reason. Now, you’re able to report on performance within legal and its supporting departments for the first time. So, what are some of those numbers that current Agiloft users ensure they’re tracking?  

With the opportunity to tie tangible numbers to their work for the first time, Agiloft users discuss the different metrics they monitor and dashboards they’ve built to help quantify legal’s impact.  

For example, one key metric is the total number of contracts that have been executed, or contracts still in process and where exactly they sit in the overall workflow at any given time. When contracts live in email, disjointed shared drives, or an outdated repository, you lose not only the volume of work that’s being completed, but also any true insight into how the process is working.  

Multiple Agiloft users acknowledge the importance of these metrics and the impact of active tracking. In more than one case, Agiloft users began to quantify the impact of the legal department on the overall business operation and show that the age-old adage of “it’s stuck in legal review” is actually just a myth – in reality, other departments directly impacting workflow times.   

Usage metrics  

It won’t always be the case that another department is the responsible party in prolonged contracting workflows. This is why another key piece of contract process data comes into play: CLM usage metrics.  

Contrary to the aforementioned scenario, there may be a few organizations that do indicate a hold up at steps on the legal side of the workflow, as opposed to an external department.  

So what can you learn from this and other usage metrics? Agiloft users report being able to reevaluate that step in the overall workflow and decide whether it is an inherent process issue, a user education issue, or something else. Usage metrics also covered the data gathered by other means, like surveys and focus groups.

“It’s more of an art than a science” 

It’s easy to view technology here, so it’s easy to view this as straightforward or black and white. But we know with contracting, that’s simply not the case.  

An Agiloft user from a global powerhouse in the manufacturing space eloquently put it: “It’s more of an art than a science. You might have a definition or a protocol in place, but there are exceptions to every rule, so it’s not always that an initial workflow that you thought might work continues to work perpetually – you need to give constant evaluation to the processes and how they’re being used.”  

That same manufacturing company has used CLM metrics to iterate on its process to now identify contracts that need to be reviewed by their team versus contracts that are now defined as low-dollar or low-risk contracts that flow directly through their workflow without any manual intervention.  

Key takeaways   

Throughout this discussion, Agiloft power users proffered a few key reminders and strategic ideas:  

• CLM is implemented to make the process as easy as possible. If you’re seeing low usage or answering the same questions over and over – it’s time to reevaluate. 

• Answer as many questions, in as many ways as you can, from day one; it makes people feel heard. CLM may give the illusion of being more complicated than email – use your CLM metrics to show them it’s not. 

• Customizing the home page experience or workflow with metrics and helpful hints can directly impact usage.  

• Open a suggestion box, build surveys, or create other tangible feedback loops to keep users engaged, help them feel more comfortable, and instill a sense of ownership within the product and its impact. You’re the cheerleader!  

• Automation is about doing more with less. Just because you can doesn’t mean you should. Agiloft’s flexibility is one of its greatest strengths; don’t over-engineer it. 

• Your CLM is there to help, so keep iterating!  Keeping an eye on CLM metrics ensures you’re always working to define and improve upon your process. Ultimately, aided with metrics, you’re able to work faster and make changes to subsequent processes that weren’t even included in your initial request or overall CLM vision. 

Conclusion 

Remember, when pulling valuable data out of your CLM, it’s important not only to focus on the impact that your CLM system is having on your contracting process, but also how that process seems to be working, including user adoption. Make sure you’re tracking the right metrics and always be on the hunt for more.

Check out the Agiloft customer community to hear more valuable tips and tricks directly from Agiloft power users!