Key Features of CLM Platforms – How to Find the Right One for Your Company?

Contract Lifecycle Management (CLM) platforms are vital for organizations looking to simplify contract processes, ensure compliance, and reduce risks. As there is increasing competition between CLM providers, it becomes essential to understand the individual features of these platforms to help businesses select the solution that best fits their individual needs. In this article, we will discuss the key aspects of CLM platforms as well as, what makes them integral for conducting proper contract management.

What is a CLM Platform?

A CLM platform automates every stage of a contract’s lifecycle—from draft and negotiation to execution and renewal. These types of platforms offer centralized storage, advanced analytics, and workflow automation to minimize the manual effort needed to manage contracts and improve accuracy and compliance. 

Important Characteristics of CLM Platforms 

Template and Contract Authoring :

Drafting contracts from scratch can take time and lead to mistakes. Key features include: 

• Templates: Custom contract templates that are pre-built so you can quickly generate contracts that are compliant with legal standards.
• Clause Libraries: Centralized libraries where users insert pre-approved clauses to ensure consistency across contracts.
• Guided Authoring: Uses step-by-step guidance to help non-legal experts craft accurate, compliant contracts.

Workflow Automation:

Automation is a key feature of CLM platforms, which streamlines contract approvals and tasks: 

• Custom Workflows: Create workflows based on approval processes and organizational structures
• Automated Notifications: Alerts for key milestones like contract renewals, expirations, or negotiations
• Task Assignments: Automatically assign tasks to corresponding team members on the basis of roles and contractual obligations.

Collaboration Tools:

Automation is a key feature of CLM platforms, which streamlines contract approvals and tasks: 

• Custom Workflows: Create workflows based on approval processes and organizational structures. 
• Automated Notifications: Alerts for key milestones like contract renewals, expirations, or negotiations. 
• Task Assignments: Automatically assign tasks to corresponding team members on the basis of roles and contractual obligations

Integrations:

Seamless integrations with existing software are essential for maximizing the value of CLM tools: 

• CRM Integration: Optimize sales and legal processes. 
• ERP Integration: Fit into enterprise resource planning systems to work together on finances or procurement. 
• eSignature Tools: : These are solutions for eSignatures that many platforms include or integrate with to streamline that part of contract execution.

AI-Powered Insights: 

AI is revolutionizing CLM with predictive analytics and risk mitigation: 

• Risk Evaluation: AI equipment recognizes high-risk clauses and recommends improvements, ensuring better contract quality. 
• Contract Insights: Analyze large contract datasets for insights into trends, bottlenecks, and areas for improvement. 
• Clause Pairing: Automate the identification of clauses in your reviews to maintain compliance with both organizational and legal standards. 

Compliance and Security:

  Security and compliance are key to managing sensitive legal agreements:

• Regulatory Compliance: Make compliance with global regulations a priority: GDPR, HIPAA, or any industry-specific standard.
• Audit Trails: Provide a full history of actions performed against a contract so that it can be more transparent and accountable.
• Data Security: Ensure sensitive contract data is secure with encryption, role-based access controls, and secure cloud storage. 

Analytics and Reporting: 

It is only through decisions based on data that contract management becomes effective: 

• Dashboards: They provide user-friendly dashboards that summarize contract performance metrics, enabling you to easily track progress at a glance. 
• Custom Reports: Create reports for KPIs, such as cycle time, contract value, and negotiation success rates. 
• Renewal Insights: Get notified of upcoming renewals and predict renewal trends with automation. 

Scalability & Customization: 

With business growth comes evolving contract management needs. Key capabilities include: 

• No-Code Personalization: Personalize work streams, templates, and reporting without the need for technical knowledge. 
• Scalability: Be able to manage volumes of contracts without your users noticing any degradation in performance or use and grow with the needs of the organization. 

Choosing the Best CLM Platform for Your Needs

Here are some factors to consider when selecting a CLM platform: 

• Business Size: Small businesses may emphasize cost and simplicity, while large enterprises might require advanced features like AI insights and ERP integrations. 
• Sector-Specific Compliance: Industries including healthcare, finance, or manufacturing may have certain regulatory compliance standards that a CLM platform should fulfill. 
• Integration Requirements: Verify that the platform can be incorporated with your current tools (CRM, ERP, eSignature, etc.). 
• Budget: Make sure you’re getting good value from the platform’s features and consider its return on investment. 
• User Experience: Go for a user-friendly platform that provides easy access to users across teams. 

Advantages of Using a CLM Platform:

Key benefits of investing in a CLM platform for organizations include: 

• Increased Efficiency: The automation of workflows minimizes the time required for handling manual contract management processes. 
• Better Compliance: Built-in compliance tools ensure that your contracts meet legal and organizational standards. 
• Reduction of Risk: AI solutions can provide valuable insights and analysis that identify potential risks and opportunities for health. 
• Cost Efficiency: Reduce mistakes, minimize or eliminate attorney expenses and allocate your team’s time and talent more strategically for overarching savings. 
• Improved Collaboration: Cross-departmental tools improve communication and collaboration throughout the contract lifecycle. 

Final Thoughts

With the advent of CLM platforms, the way businesses manage their contracts has transformed dramatically. These platforms are equipped to tackle the complexities of modern contract management, providing everything from workflow automation, AI insights, compliance tools, and more. 

However, focus on whichever CLM solution will provide the best return on investment based on your business needs and growth goals. The right platform can be transformative, streamlining contracts, minimizing risk, and maximizing organizational success.