Streamlining The Contract Lifecycle: Six Stages Every In-House Legal Team Should Know

At IRIS, we’ve had the privilege of partnering with countless in-house legal teams, helping them navigate the complexities of contract management. We understand the pressures you face—balancing compliance, efficiency, and organizational goals—all while managing a mountain of contracts. Through our experiences, we’ve developed a deep understanding of the contract lifecycle and how to make each stage work for you. Think of this guide as a conversation with a peer who’s been in the trenches with you, someone who’s faced the same hurdles and discovered practical ways to make the process smoother and more effective.

To simplify the contract lifecycle management process, it’s helpful to visualize the contract lifecycle as a circular process, where each stage builds on the previous one. This way, representing how each stage is connected, demonstrating that successful contract management requires a holistic approach.

So without further ado, let’s focus on each stage to explore how you can efficiently draft contracts that meet organizational needs, negotiate and review terms to mitigate risks, streamline approval workflows for timely sign-offs, execute agreements securely, manage compliance throughout the contract’s lifecycle, and finally, make informed decisions on whether to renew or dispose of contracts based on their performance. Each section will provide you with insights and actionable steps to optimize every part of the contract lifecycle.

Every contract begins with a need, and it’s your job to transform that need into a clear, actionable document. This is where the contract lifecycle kicks off, and it’s crucial to get it right from the start. The drafting stage isn’t just about filling in templates; it’s about creating a solid foundation that ensures the contract aligns with your organization’s objectives and mitigates potential risks.

Our Experience

We’ve worked with many in-house teams that face the challenge of drafting contracts under tight deadlines, often juggling multiple priorities. One of the most effective strategies we’ve seen is the use of standardized templates. These templates not only save time but also ensure consistency across all contracts, reducing the risk of errors. But we know it’s not just about the templates—you need to collaborate closely with your stakeholders to make sure every detail is captured accurately. That’s where a robust CLM solution can be a game-changer. By automating much of the drafting process, you’re free to focus on the specifics that make each contract unique.

Once the draft is in place, the next step is review and negotiation. This is where the terms are fine-tuned, ensuring they meet your organization’s needs while also addressing the concerns of the other party. We understand that this stage can be particularly challenging, especially when there’s a lot at stake.

Our Insight

Negotiation can be a pressure point, but we’ve found that having the right tools can significantly ease the burden. When we work with legal teams, we recommend using a CLM system to manage versions and track changes. This not only helps maintain control over the negotiation process but also ensures that all parties are working from the most up-to-date version of the contract. Clear communication and collaboration are key here, and a CLM system provides the structure needed to keep everything organized and transparent. With these tools, you can navigate the negotiation process more confidently and efficiently.

After negotiation, the contract needs to be approved by the necessary stakeholders. Depending on your organization, this might involve multiple layers of approval, and we know how easily things can get bogged down at this stage.

What We’ve Learned

In our experience, the approval process is often where delays occur. That’s why we emphasize the importance of a clear and efficient workflow. When we partner with legal teams, we help them implement automated approval workflows that ensure the contract moves smoothly from one stakeholder to the next. This not only keeps the process moving but also reduces the chances of errors or omissions. With the right system in place, you can streamline approvals and keep the contract lifecycle on track.

Once approvals are in place, it’s time to execute the contract—making it legally binding. In today’s digital-first world, electronic signatures are the standard, but it’s essential to ensure that this process is handled securely and efficiently.

Our Perspective

We’ve seen how electronic signatures can transform the execution stage, making it faster and more secure. When we work with legal teams, we often integrate eSignature capabilities into their CLM systems. This not only speeds up the execution process but also provides a clear audit trail, so you can always see who signed what and when. This level of transparency and security is crucial for avoiding disputes later on. With the right tools, contract execution becomes a seamless part of the lifecycle, allowing you to move forward with confidence.

After execution, the contract enters the management and compliance stage. This is where the ongoing work happens—monitoring the contract to ensure that all parties fulfill their obligations and managing any amendments that arise.

What We’ve Seen

Effective contract management is about more than just storing documents. We’ve worked with teams that have struggled with compliance issues because they didn’t have a centralized system for tracking obligations and deadlines. That’s why we advocate for using a CLM system that provides a centralized repository and automated alerts for key dates. This ensures that nothing falls through the cracks, and you can stay on top of compliance and performance throughout the contract’s lifecycle.

As the contract nears its expiration, you’ll need to decide whether to renew it or let it expire. This decision should be informed by the contract’s performance and its relevance to your organization’s current needs.

Our Approach

The decision to renew or dispose of a contract is a critical one, and it’s something we’ve helped many clients navigate. By using a CLM system, you can automate renewal notifications and access performance data that helps you make informed decisions. Whether you’re opting for renewal or disposal, a CLM system ensures that the process is handled securely and in compliance with your organization’s policies. This final stage is about optimizing your contract portfolio and ensuring that every agreement continues to serve your organization’s goals.

At IRIS, we’ve seen firsthand how mastering the six stages of Contract Lifecycle Management can transform the way in-house legal teams operate. From drafting to renewal or disposal, each stage presents an opportunity to streamline processes, reduce risks, and enhance compliance. We’re here to support you at every step, providing the tools and insights you need to manage contracts more effectively.

If you’re feeling overwhelmed by the contract lifecycle or just looking for ways to improve your process, we’re here to help. We’ve worked with many teams like yours, and we understand the challenges you face. Let’s work together to find the solutions that will make your job easier and your contracts more effective.