At the latest congress of the World Commerce & Contracting (WCC) association in Malaga, we had the pleasure of meeting BirdsEye, a SaaS contract management software publisher. We very much liked its approach and its distinctive feature: the emphasis it places on the post-signature phase of contracts, an aspect rarely targeted by most CLMs on the market.
In this article we look at why that can be a key differentiator for contract management.
The absence of a CLM genuinely dedicated to contract management
The CLMs on the market each have their own strengths and specific features. However, we observe that most of these solutions are designed primarily for lawyers and focus mainly on the administrative side of contracts.
Yet we know that the real value of a contract lies in how effectively it is performed and managed, and that does not stop at signature.
Genuine contract management covers all the activities needed to activate every performance lever in the contract throughout its lifecycle. Few current CLMs, however, offer smooth functionality designed for monitoring and steering contract performance.
This gap leaves contract managers without suitable tools to maximise the value drawn from contracts.
What might the ideal CLM for contract managers look like?
In our field experience, it would be a solution built around the very essence of contract management, namely maximising the value of contracts in order to contribute to the operational and financial success of the company, and doing so throughout their lifecycle.
So, in addition to the pre-sales side (drafting, negotiating, signing and archiving the contract), the tool we dream of must cover the following aspects, which make up the contract manager’s daily work:
Steering contract performance
This means easily configurable functionality allowing all operational aspects to be tracked after the contract is signed, during the performance phase and according to the user’s own needs.
Performance monitoring
Closely monitoring the performance of the contracting parties is essential to ensure they meet the requirements and objectives set out in the contract. Greater visibility of performance indicators makes it possible to spot deviations quickly and to make the necessary adjustments proactively in order to maintain the expected level of performance.
Payment management
Managing payments and invoicing is crucial and is often a source of friction in contractual relationships. The contract manager must be able to track payment and invoicing independently, without having to go through the accounts department every time, in order to anticipate or avoid any dispute.
Managing changes and contract amendments
Managing changes arising from unforeseen circumstances or new needs is essential in order to stay agile. A tool that allows this to be done in a structured, collaborative way and gives a clear view of the impacts on the contract would be a real advantage.
Reporting and documentation
Keeping detailed reports and accurate documentation of all contract-related activities and of claims is essential to guarantee sound traceability of changes or when managing claims, but also to assess regularly the risks that may arise from performance of the contract.
Contract management is an operational activity, distinct from legal work. Its scope of intervention, the interactions and synergies it creates and the added value it brings in the post-signature phase therefore highlight the limitations, for this function, of the CLMs available on the French market.
… And BirdsEye?
BirdsEye has the distinctive feature of being a solution built from the outset to meet the needs of the post-signature phase of contracts. We are thinking, for example, of its payment and invoicing tracking features, its risk management module and its reporting, all of which are very interesting.
Above all, though, it is how highly configurable BirdsEye is that sets it apart and can allow easier adaptation to contract management activities. This hyper-configurability can meet the needs described above, and do so effectively.
With modular functionality, the tool can be adjusted easily to the various processes and requirements and to the contract management maturity of each organisation. Broadly speaking, a flexibility that can serve the efficiency of contract management.
Conclusion
Prime Conseil sees BirdsEye’s highly modular capability as real added value for the digitalisation of contract management, and also as a way of embedding operational contract management within the CLM.
That is why we are delighted to support the BirdsEye teams in their roll-out in France, convinced that this solution will enable companies to maximise the value of their contracts while ensuring smooth and efficient performance.