For legal department operations professionals embarking on their journey of collecting contract data and improving business through contract data, it’s important to approach it with a crawl-walk-run mentality. In the crawl phase, focus on establishing a baseline landscape of contracting activity by analyzing contract volumes, types of templates used, business units involved, and…
For legal department operations professionals embarking on their journey of collecting contract data and improving business through contract data, it’s important to approach it with a crawl-walk-run mentality. In the crawl phase, focus on establishing a baseline landscape of contracting activity by analyzing contract volumes, types of templates used, business units involved, and geographies where contracts are signed.
In the walk phase, progress to collecting data on contract value, turnaround times, and process delays to identify inefficiencies and make informed decisions for process improvement. In the run phase, more mature organizations can delve into analyzing deviations from standard language and approved processes, as well as evaluating obligations and performance post-execution. Taking incremental steps and gradually expanding the scope of data collection and analysis will lead to a more successful contract life cycle management data program.
Video TranscriptExpand ↓
And of course everyone's digital transformation journey is different. What would you say to an LDO that's just at the beginning of this consequential journey of collecting contract data and improving business via contract data? Yeah. I think what legal department operations professionals know is that any KPI program, any data program is not built overnight. Rome was not built, you know, in a day. But I have found that the organizations that have been most successful in building a contract life cycle management data program, approach this with a crawl walk run mentality. So where does that start? Yeah. So if an organization for legal department is just starting out And they're in that crawl phase, one of the things I recommend is looking at contract volumes. That could be volumes of company paper versus third party paper. It could be the types of templates that are used, the business units that are originating the request or the geographies where the contracts are signed. So this crawl phase is about setting a baseline landscape of your contracting activity. For those organizations that are moving from this crawl phase, to the walk phase, we see LDO's collecting the following. It is contract value. Turnaround times, delays in process. And the reason why they're collecting those things in this next phase, this walk phase, is because once you have a baseline, you can begin to understand the process, the inefficiencies that exist in that process, and to start make decisions to help remove some of that friction out of the contracting process. Finally, companies after they go from a choral phase to the walk phase, they are off to the races and running. So for those organ so for those organizations that we see who are most mature, they are looking at things like deviation from standard language, They're looking at deviations from approved processes. And for our highly mature organizations, we see them taking a very deep look and analysis on their obligations and obligations performance post execution.
