Implementing a Contract Lifecycle Management (CLM) system is a significant step toward streamlining contract processes, improving compliance, and enhancing operational efficiency. However, the real challenge begins after deployment, learning how to measure CLM system success is something that a lot of people don’t think about after the implementation of their CLM. Businesses need to assess whether their CLM system is truly driving efficiency, ensuring compliance, and integrating well with other processes.
Organizations, especially small and growing organizations must continuously evaluate their CLM performance to optimize workflows and maximize benefits. A case study from Southern Cross Investments, a leading European investment vehicle, offers valuable insights into how a global business successfully expanded and optimized its CLM system for long-term success.
Southern Cross’s Journey to CLM Implementation
With operations across Europe and a growing customer base, Southern Cross handles an increasing volume of contracts which meant there was a need for a robust, scalable, and centralized contract management solution. Their approach offers key insights for organizations looking to measure CLM system success and optimize their contract management workflows.
To address these challenges, Southern Cross initiated a comprehensive search for the right CLM platform, starting with a clear summary outlining key requirements:
- A centralized contract repository
- Automation of contract workflows
- Version control and audit trails
- Actionable analytics and reporting
- AI-powered contract management
After evaluating multiple options, Southern Cross selected Contract Sent as its CLM provider, launching the first implementation in 2024.
Scaling CLM Across a Multi-National Business
Rolling out a CLM system across a multi national organization is a complex process that requires a phased approach to ensure smooth adoption. Being able to measure CLM system success was an imperative from day one with the need for clear overview of contracts and requirements for time saved by the team.
Instead of launching company-wide, they began with their largest user group in investment contracts before expanding into other areas. This methodical approach helped refine the system, address challenges, and improve user buy-in.
According to Andre Weyher, Founder of Southern Cross, measuring CLM system success required answering three critical questions:
- Is Contract Sent truly serving as a single source of truth for contracts?
- Is contract data fully utilized across all business units?
- How can efficiency be maximized while maintaining compliance?
By treating Contract Sent as the “foundation” of their contract management system, Southern Cross aimed to build a fully integrated and highly efficient contracting solution.
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Key Lessons for Successful CLM Expansion
Expanding a CLM solution across a multi national is not without its challenges. Southern Cross’s experience offers valuable lessons for businesses looking to implement or scale their own contract management systems.
1. Separate IT Development & Support Teams
One of the biggest roadblocks Southern Cross encountered was assigning IT teams to both develop and support the CLM system simultaneously. This dual responsibility led to slower progress and inconsistent support.
Solution: Maintain dedicated teams for system development and ongoing support. This ensures continuous improvements while providing end users with the assistance they need.
2. Allow for a Flexible Implementation Timeline
A rushed rollout can create confusion, resistance, and inefficiencies. Some business units were not fully prepared to transition, which slowed adoption.
Solution: Take a gradual approach, ensuring each team is adequately trained and comfortable before introducing new processes. A flexible timeline allows for troubleshooting and optimization.
3. Overcome Resistance with Data-Driven Insights
When implementing CLM across newly acquired subsidiaries, some teams initially viewed it as an unnecessary burden rather than an efficiency booster.
Solution: Use data to demonstrate time savings and efficiency gains. Southern Cross compared traditional contract approvals (which took an average of 10 days) with digital signature processes (which took just one day). Presenting these hard numbers helped gain leadership support and encourage adoption.
4. Identify and Engage Detractors Early
Not everyone will immediately embrace new technology. Resistance from certain teams can slow down implementation.
Solution: Identify hesitant users early and involve them in the process. Southern Cross proactively engaged potential detractors, provided personalized training, and empowered them to train others. This strategy turned initial skeptics into champions of the new system.
How Technology Enhances CLM Success
Modern CLM systems leverage AI and automation to streamline processes and improve efficiency. For example, solutions like AI Contract Data Extraction enable businesses to extract key contract details instantly, reducing manual effort and improving accuracy.
Another critical component is Contract Tracking Software, which provides real-time visibility into contract statuses, ensuring teams stay updated on renewals, obligations, and approvals.
For organizations that manage large contract volumes, High Volume Contract Search simplifies document retrieval, allowing teams to quickly find and review contracts without wasting time on manual searches.
Why Measuring CLM Success Matters
Southern Cross’s experience underscores the importance of continuously measuring and optimizing CLM performance. A successful CLM strategy enables organizations to:
- Increase contract efficiency and accuracy
- Reduce compliance risks and legal exposure
- Improve collaboration across departments
- Maximize the benefits of automation and AI
To ensure success, businesses must treat CLM implementation as an evolving process rather than a one-time deployment. Regular evaluations, feedback loops, and process refinements help maintain efficiency and long-term value.
Implementing a CLM system is only the first step. Measuring its success, optimizing workflows, and driving user adoption are what truly determine its impact.
Southern Cross’s journey with Contract Sent demonstrates how a structured, data-driven approach can turn contract management into a powerful business enabler. Their key takeaways separating development and support teams, allowing for gradual implementation, leveraging data insights, and engaging hesitant users provide a roadmap for other businesses looking to expand their CLM systems.
If your organization is planning a CLM expansion, applying these lessons can help ensure a smooth transition, maximize efficiency, and create a future-proof contract management strategy.
