Key Criteria to Evaluate When Considering CLM Solutions: A Guide for In-House Legal Teams

Choosing the right Contract Lifecycle Management (CLM) solution is a critical decision for any in-house legal team. The right tool can streamline your processes, improve compliance, and empower your team to focus on more strategic tasks. But with so many options available, how do you know which solution is the best fit for your organization?

At IRIS, we’ve partnered with numerous legal teams, supporting them in their decision-making process to make a profound decision. In this guide, we’ll walk you through the key criteria you should consider when evaluating CLM solutions, ensuring you select a tool that meets your needs and supports your goals.

One of the most important factors to consider is how well the Contract Lifecycle Management solution integrates with your existing systems. Your legal team doesn’t work in isolation, and neither should your CLM tool. Whether it’s your ERP, CRM, or document management systems, the CLM solution you choose must seamlessly integrate with the other tools your team relies on daily.

We’ve seen how disjointed systems can lead to inefficiencies and errors. When a CLM solution integrates smoothly with your existing software, it ensures that data flows effortlessly between platforms, reducing the need for manual data entry and minimizing the risk of discrepancies. A well-integrated CLM system allows for a more holistic view of your contract management process, enabling your team to make informed decisions quickly.

Even the most powerful CLM solution won’t be effective if it’s difficult for your team to use. The user interface (UI) and overall user experience (UX) should be intuitive, allowing your team to easily navigate the system, find the information they need, and perform tasks without unnecessary complexity.

In our experience, a user-friendly system leads to higher adoption rates and better overall performance. If your team struggles to use the tool, they’re likely to revert to old habits, undermining the benefits of the CLM system. Look for a solution that offers a clean, intuitive interface, clear navigation, and helpful support resources. Training should be straightforward, with minimal downtime required to get your team up to speed.

Every legal team has its own unique workflows and processes. The CLM solution you choose should be flexible enough to adapt to your specific needs, rather than forcing you to change your processes to fit the tool. This includes the ability to customize workflows, templates, and reporting features.

We’ve worked with legal teams that have complex, multi-step approval processes or specific compliance requirements. A one-size-fits-all approach doesn’t work in these situations. A flexible CLM solution allows you to tailor the system to your existing workflows, ensuring it supports your team’s way of working rather than hindering it. The ability to customize the system also means it can grow and evolve with your organization, remaining relevant as your needs change.

Even the most powerful CLM solution won’t be effective if it’s difficult for your team to use. The user interface (UI) and overall user experience (UX) should be intuitive, allowing your team to easily navigate the system, find the information they need, and perform tasks without unnecessary complexity.

In our experience, a user-friendly system leads to higher adoption rates and better overall performance. If your team struggles to use the tool, they’re likely to revert to old habits, undermining the benefits of the CLM system. Look for a solution that offers a clean, intuitive interface, clear navigation, and helpful support resources. Training should be straightforward, with minimal downtime required to get your team up to speed.

Your organization’s needs today may not be the same as they will be in the future. When selecting a CLM solution, it’s essential to consider whether the tool can scale with your organization as it grows, handling an increasing volume of contracts and more complex workflows.

At IRIS, we’ve seen how organizations can quickly outgrow their tools. A CLM solution that works well for a small team might struggle to keep up as your contract volume increases or as your business expands into new regions. Scalability ensures that your investment in a CLM solution is future-proof, allowing you to continue benefiting from the tool as your organization grows.

Contracts contain sensitive information, and protecting that information is paramount. The CLM solution you choose must offer robust security features, including encryption, access controls, and audit trails. Additionally, it should support compliance with relevant regulations, such as GDPR or industry-specific standards.

Security is non-negotiable when it comes to contract management. We’ve helped legal teams implement CLM solutions that offer the highest levels of data protection, ensuring that their contracts are safe from unauthorized access or breaches. Compliance is equally important—whether it’s adhering to data privacy regulations or meeting specific industry standards, your CLM tool must help you stay compliant to avoid legal risks and penalties.

A powerful CLM solution doesn’t just manage contracts; it provides insights into your contract portfolio through robust reporting and analytics features. These tools allow you to track key metrics, identify trends, and make data-driven decisions that can improve your contract management processes.

Data-driven decision-making is a game-changer for in-house legal teams. We’ve seen how access to real-time analytics can empower legal teams to optimize their workflows, identify bottlenecks, and mitigate risks. Whether you’re tracking contract cycle times, monitoring compliance, or evaluating vendor performance, a CLM solution with strong reporting capabilities gives you the information you need to drive continuous improvement.

The implementation of a CLM solution is just the beginning. Ongoing support and training are critical to ensuring that your team can make the most of the tool. Evaluate the vendor’s support offerings, including training resources, customer service, and regular updates.

In our partnerships with legal teams, we’ve found that the quality of vendor support can make or break the success of a CLM implementation. Look for a vendor that offers comprehensive training to get your team up and running quickly, as well as ongoing support to help you troubleshoot issues and optimize your use of the system. Regular updates and improvements should also be part of the package, ensuring that your CLM solution continues to meet your needs over time.

Selecting the right CLM solution is a critical decision that can have a lasting impact on your legal team’s efficiency, compliance, and strategic value. By focusing on these key criteria—integration, user-friendliness, customization, scalability, security, analytics, and support—you’ll be well-equipped to choose a solution that aligns with your organization’s needs and sets your team up for success.

If you’re ready to explore your options and find the right tool for your team, we’re here to help. We gladly guide you through every step of the process of adopting solutions for Contract Lifecycle Management; from evaluation to implementation and beyond. Let’s find the solution that empowers your team to excel.