Whether you are new to CLM, or a pro at revolutionizing your company through contracts, having a framework to evaluate the ROI and business impact of a contract lifecycle management solution can have significant advantages.
To learn how Ironclad customers think about the business value of a CLM and quantifying the economic impact, Ironclad commissioned a Total Economic Impact study from Forrester Consulting to determine the potential ROI of Ironclad. We also had Forrester’s Consultant, TEI Luca Son join us and InTouchCX’s VP of Contract Strategy Shelly Plett for a conversation on measuring ROI.
Key Takeaways
- Turnaround time is your North Star. To start measuring the impact of your CLM, you should start with the time it takes for your contract to get turned around from a counterparty. It’s a good indicator of how smoothly your CLM is facilitating the negotiation process. The two that follow should be the number of turns it takes to get a contract signed and the time it takes to process a contract from first send to final execution.
- Pick your battles. When it comes to creating impact fast, don’t get distracted trying to boil the ocean, standardizing hundreds of legacy contract terms or trying to merge versions for every single contract type. Instead, pick the key terms and templates that will have the most impact the fastest and prioritize from there.
Even the more immeasurable benefits have a barometer. While it might not be as straightforward measuring benefits like the impact of an easy-to-use tool on the morale of your team, you can turn to tangential indicators to get a feel for its efficacy. For example, take a look at the job description of a legal ops role over time. If you notice that it has changed to index less on administrative work and more on strategic work, that’s a good indicator that the automations the tool has are working.
Interested in seeing how Ironclad can help your organization? Talk to one of our digital contracting specialists and get a custom demo.
Ironclad is not a law firm, and this post does not constitute or contain legal advice. To evaluate the accuracy, sufficiency, or reliability of the ideas and guidance reflected here, or the applicability of these materials to your business, you should consult with a licensed attorney. Use of and access to any of the resources contained within Ironclad’s site do not create an attorney-client relationship between the user and Ironclad.
