As organizations look to improve their Contract Lifecycle Management (CLM) systems, understanding CLM maturity for legal efficiency is key to optimizing workflows and reducing risks. Many legal teams struggle with scattered contract processes, which can lead to compliance risks and missed opportunities. Identifying where your organization stands in CLM maturity helps set clear goals for better contract visibility, automation, and risk management.
But what exactly does CLM maturity for legal efficiency mean, and how can businesses move towards it?
The Three Stages of CLM Maturity
Maturity in CLM is typically categorized into three stages:
- Early-Stage Capabilities: Contracts are stored in multiple locations, processes rely on emails and spreadsheets, and there is little visibility into contract obligations. Teams spend excessive time searching for contracts and ensuring compliance.
- Intermediate Capabilities: Standardized workflows and automation start improving efficiency. CLM tools integrate with key business applications, but full adoption and optimization remain work in progress.
- Advanced Capabilities: Automated contract creation, AI-powered insights, and seamless integrations make contract management proactive rather than reactive. Legal teams shift from manual tasks to strategic decision-making.
To achieve CLM maturity for legal efficiency, organizations need the right tools and strategies to transition from scattered contract management to a fully optimized system.
Insights from CLM Experts on Maturity
At a recent industry panel, legal professionals shared their experiences in improving CLM maturity. Their insights highlight common challenges and proven solutions for advancing contract management.
Christy Schumacher – Sr. Manager, Consultant, Qualitas
Christy emphasized that early-stage implementation is often challenging, but having a clear roadmap leads to long-term success. She recommends ensuring that contract users understand the benefits of CLM, making adoption easier.
Senior Project Manager – Healthcare Industry
For this healthcare company, implementing a CLM system in phases allowed them to start with the most disorganized contracts and gradually improve efficiency. They found that contract tracking and historical data access were major advantages in reaching maturity.
One way organizations can streamline CLM processes is by using an AI Contract Data Extraction tool, which automatically pulls key contract details and reduces manual data entry.
Courtney Hexham – Manager, Legal & Compliance Operations, Hagerty Insurance
Courtney took an incremental approach to CLM adoption, ensuring that teams received training to ease the transition. Over time, Hagerty’s legal team improved risk visibility, obligation tracking, and budget oversight.
Kami Paulsen – Managing Director, Elevate
Kami stressed the importance of defining clear business objectives before implementing CLM automation. Once an organization starts seeing value, they can further optimize legal operations by using AI and contract comparison tools to enhance negotiations.
For example, implementing a Contract Comparison tool can help legal teams quickly identify changes between contract versions, improving accuracy and negotiation speed.
Steps to Achieve CLM Maturity
To move toward CLM maturity for legal efficiency, organizations should take a strategic approach:
- Centralize Contract Storage
Instead of storing contracts in multiple places, use a single system that provides quick access and searchability. An integrated High Volume Contract Search tool can streamline this process, reducing time spent locating key agreements. - Automate Repetitive Tasks
AI-powered contract drafting, approval workflows, and contract tracking tools help legal teams focus on strategic work rather than manual reviews. - Enhance Compliance & Risk Management
Organizations must regularly review contracts, track key dates, and ensure compliance. A contract tracking system ensures no obligations or deadlines are missed. - Leverage AI & Analytics
AI-driven contract insights provide data-backed recommendations, helping businesses identify trends and optimize contract negotiations. - Ensure Seamless Integrations
A mature CLM system integrates with CRM, ERP, and other key business tools to provide end-to-end contract visibility across departments.
Reaching CLM maturity for legal efficiency doesn’t happen overnight, but by taking incremental steps, legal teams can unlock major benefits. From better contract visibility to reduced risk and improved compliance, a mature CLM system transforms legal operations into a strategic business asset.
By adopting the right tools and strategies, organizations can enhance efficiency, reduce manual work, and position themselves for long-term success.
