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Myth: CLM Belongs to Legal

While contracts are legal documents, their impact extends beyond the legal department. Contract transformation should involve other departments because contracts define relationships that belong to the entire business. Whether it’s purchasing, selling, or hiring, contractual obligations affect multiple departments. For example, security and risk teams have a vested interest in contract negotiations due to…

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While contracts are legal documents, their impact extends beyond the legal department. Contract transformation should involve other departments because contracts define relationships that belong to the entire business. Whether it’s purchasing, selling, or hiring, contractual obligations affect multiple departments. For example, security and risk teams have a vested interest in contract negotiations due to the implications for data protection and risk management.

Additionally, the teams involved in contract management may include direct contributors and those who benefit from the data and insights derived from contracts. As organizations break down functional silos, there is a growing understanding of how legal and financial commitments influence various areas of the business. Therefore, involving other departments in contract transformation is crucial for a holistic and integrated approach.

Video TranscriptExpand ↓

Contractss are technically legal documents. So, Contract transformation should be owned and driven by legal department. Why should the other departments be a part of it? I yeah. Allah, I wanna hear your thoughts on this. Well, so contracts define relationships, and those relationships belong to the business in its entirety. Whether we're buying, whether we're selling, whether we're hiring, and every other type of contractual obligation in between Even though it is a legal document, it impacts more than just the legal team. In fact, I'm having a lot of conversations with four store clients recently, especially around the impacts to security and risk teams. So the the teams that negotiate the contract, whether that's procurement and legal, are very often not the teams that then have to service that contract later on during its period. We're seeing that those roles that are involved in the contract management process. Whether they are direct contributors or maybe they're just beneficiaries of that data and that intelligence and that information. Has become much more broad because organizationally we're starting to break down those functional silos and understand how the impact of our legal obligations and our financial commitments will also impact every area of the business. So,

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