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NOTE: This is the fifth article in this series. Start here if you missed the previous articles in the series: CLM Health Check Pillar 1

Marshfield’s CLM Health Check service, a systemized, holistic evaluation to identify inefficiencies, gaps, and improvement opportunities, is designed to turn your CLM software into a maximized tool to deliver the most business value it possibly can. This blog series takes the 10 pillars of the Marshfield Method, briefly defines and describes each pillar, and then walks you through evaluating the health of your CLM system as it relates to each individual pillar.

The eighth pillar is Contract Analytics, and the ninth pillar is Contract Readiness. What are these pillars, and how can you tell if they are in good shape within your CLM process?

When we speak of Contract Analytics, we’re referring to deep insights into performance and lifecycle, which either enable strategic decision-making or hinder it. Analytics cover the contracts themselves and any of

the key contract data, terms, or obligations that have been abstracted from the unstructured content of the contract, along with data generated that describes the contracts as they go through the contract process. Insights can include knowing where your contracts are in the process, how long they remain in each step or stage, who is assigned, and overall cycle times.

Indicators of Good Health:

  • All details of the workflow are captured, (e.g., who did what, when) to give a full view of the process
  • Dashboards and reports are available and built for all use cases the company cares about.
  • Analytics are utilized and accessible to all users who need them
  • The data is complete and accurate
  • Analytics relevant to eall areas of the business are included, to prevent unseen reporting gaps


Indicators of Poor Health:

  • There are parts of the process where no data is being captured, rendering reporting impossible
  • Data is being captured, but it contains bugs, errors, and outdated information
  • Data is being captured but reports being utilized aren’t relevant or helpful
  • Lack of maturity in use of data and analytics for stakeholders

 

The ninth pillar is Contract Readiness, meaning the company’s comprehensive preparation for CLM implementations, and/or balancing new tool adoption with ongoing contract management iteration. While a project to implement CLM takes place, the everyday normal work of Contract Management does not go away, so often key project resources are balancing completing their project deliverables and honoring their project obligations while simultaneously having to continue to do their day job. Facilitating change management, user training and driving user adoption are all considered readiness topics. Having a well thought out Contract Readiness strategy is important for long term success.

For a New CLM Implementation, indicators of Good Health are:

  • The process is known and followed fairly well and consistently, and end users know the process
  • There is a comprehensive training guide and systems in place
  • There is good support for all users


For a new CLM implementation, indicators of Poor Health are:

  • The company does not have a vision for what they want or need from implementing CLM
  • The users and stakeholders are not ready to change the process
  • The users and stakeholders don’t know what their contract process is
  • There is no final decision-maker identified, or there are too many decision-makers


For a company with an existing CLM system Implementing advanced tools and features, indicators of Good Health are:

  • The existing CLM process is known, and is being followed and utilized
  • Users are supported and enabled for self sufficiency in the existing process
  • There is a good change management process in place
  • There is a high level of adoption of the existing system and process
  • There is not a lot of variation in the use of the system
  • There is a high consistency of use of the existing process

 

For a company with an existing CLM system Implementing advanced tools and features, indicators of Poor Health are:

  • Poor adoption of system and process
  • Users are not following the chain of custody process.
  • Creation of new processes outside of the system to mitigate deficiencies.

 

As with all 10 of the Marshfield Method pillars, Contract Analytics and Contract Readiness are essential components of a healthy and effective CLM system. Strong contract analytics empower strategic decision-making by providing clear, accurate insights into every stage of the contract lifecycle. Meanwhile, contract readiness ensures a smooth implementation or evolution of CLM tools by aligning processes, supporting users, and maintaining consistency.

Stay tuned for the final article in this series as we complete the journey toward CLM excellence. We would welcome the opportunity to help you optimize your CLM system. Contact us here to get started.

 

 

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