Picture this: your organization finally invests in a Contract Lifecycle Management (CLM) platform. The decision feels like a big win. But a few months later, things don’t look quite as expected. Workflows are still unclear, employees are frustrated, and contracts remain buried in email threads. So, what went wrong?
The answer often comes down to one factor: lack of CLM readiness.
Just like building a house requires a blueprint before installing windows, implementing a CLM solution requires a solid foundation. Readiness is that blueprint that ensures the right people, clearly mapped processes, aligned business goals, and contract data are identified before transformation begins. Without it, even the smartest tool can fail to deliver.
According to research by Deloitte, poor contract management erodes an average of 8.6% of contract value. That tangible loss can be prevented with proper planning.
What Happens When You Skip Contract Lifecycle Management Readiness
Jumping straight into technology without preparing for it is like pouring concrete without prepping the ground first – it might hold for a while, but the cracks will come, and they’ll only get wider over time. Many enterprises experience:
- Misalignment between user expectations and what CLM delivers, leading to confusion, frustration, and low adoption across teams
- Contract management challenges like bottlenecks, slowed execution, and longer cycle times
- Fragmented manual workflows that increase operational risks
- Overly complex contract templates, like Master Service Agreement (MSA) requiring hundreds of data attributes, which discourages use and hinders productivity
- Broken integrations between CLM, CRM, or any other operational systems, resulting in inconsistent records and poor visibility
- Loss of money and effort on contract management software when readiness is skipped, leaving the investment underutilized and teams frustrated
In other words, automation layered on top of shaky foundations magnifies problems rather than solving them. That’s why CLM readiness should be a business necessity.
Laying the Groundwork for Contract Lifecycle Management Readiness
Every successful CLM journey begins with the right partner – one who goes beyond installing contract management software and starts by asking the questions that truly matter, not just to legal or procurement alone but across the board (though both these departments’ strategic leaders and operational teams rely on contract management software to manage data and accelerate approval).
Here’s what a strong implementation partner should help you uncover:
1. Define the “Why”
Imagine you’re sitting across the table from your implementation partner. The first thing they should ask:
- Why are you investing in CLM?
- What does CLM success look like for your business?
These questions alone set the foundation for executive alignment, making sure your contract management strategy reflects enterprise-wide priorities, not just technical requirements.
2. Focus on People
The conversation then moves to people. Transformation takes root when teams are prepared, supported, and engaged from the start. The right partner will ask:
- How will this change impact your legal, procurement, and finance teams?
- What support do they need to adopt CLM successfully?
With strong change management, adoption becomes a natural step forward rather than a hurdle.
3. Streamline Processes
Automation without preparation only amplifies inefficiencies. Your partner should ask:
- Which parts of your contract workflow are slowing you down today?
- Where are the bottlenecks?
By addressing them before automation begins, your partner sets the stage for optimized workflows that free teams to focus on higher-value work.
4. Integrate Technology
Finally, the spotlight turns towards technology. A readiness-driven partner will ask:
- How do your existing systems, like CRM, ERP, digital signature tools, and other business management software, connect today?
With this lens, your partner ensures CLM integrates seamlessly, enabling you to maximize value from the tools you already use. For organizations working with management software companies, this integration is the difference between disconnected solutions and one that unlocks true business intelligence.
The Payoff of Asking the Right Questions
When these questions are asked and answered, the outcomes are powerful.
- Legal gains stronger governance and compliance.
- Procurement achieves greater control over spend and supplier resilience.
- Business leaders gain visibility, accountability, and measurable impact.
Across the organization, contract management evolves from a routine task into a strategic advantage that drives growth.
For deeper insights into how organizations are modernizing their contract processes, check out these blogs:
- Optimizing Contract Lifecycle Management Drives Enterprise Efficiency
- Contract Intelligence in Banking, Finance, & Insurance
Why Contract Lifecycle Management Readiness Matters
The fact that 60% of companies are considering contract management software updates shows that success with contract management software goes beyond installation.
True transformation comes from recognizing contract management as a business-wide process shift, not a plug-and-play tool.
For legal teams, that means enabling governance and compliance, easing the burden of repetitive contract reviews, and enabling digital signature integration. For procurement, it means gaining sharper control over obligations, spend, and supplier resilience, even in times of disruption.
And for the organization, it’s about aligning CLM with broader business KPIs to unlock measurable value rather than just another system to manage data.
CLM readiness is the foundation for this transformation. By adopting a readiness mindset, you set a North Star direction that ensures the system serves your people, streamlines processes, and delivers long-term results. With the right approach, CLM stops being just another piece of software and becomes a catalyst for lasting business impact.
Do you want to get CLM ready? Get in touch with us here.
