Contract lifecycle management (CLM) tools are a category of of automated software solutions built to optimize the contract lifecycle from start to finish. They do this by improving contract workflows, streamlining the contracting process, and reducing repetitive manual tasks. Properly utilized, CLM tools allow companies to maximize deal values and accelerate sales cycles, while also mitigating risk and improving compliance with applicable laws and regulations.
Comprehensive CLM tools (like Conga CLM) can help to improve efficiency, effectiveness, and cost savings across all phases of the contract lifecycle, including:
1.    Request phase: Automate submission of new contract request
2.    Drafting phase: Streamline creation of the initial contract draft using pre-approved templates
3.    Negotiation phase: Build automated workflows to facilitate contract distribution, negotiations, and redlining
4.    Review/approval phase: Automate workflows to submit the contract to all necessary approvers (including the legal team) for final authorization to move forward
5.    Execution phase: Upon approval, automatically send the contract to all relevant parties, collect electronic signatures, and place the contract in a secure repository
6.    Obligations phase: Monitor contract execution using automatic notifications to keep track of important milestones and ensure that obligations are met
7.    Compliance/audit/reporting phase: Review to ensure all legal requirements have been met; evaluate performance to determine whether the contract should be renewed, renegotiated, or terminated
8.    Amendment/renewal phase: Set the contract up to either renew, expire, or renegotiate when it reaches the end of its term; then the cycle begins again