Empowering Teams Beyond Legal: The Future of Contract Management
Contracts are no longer just legal documents, they’ve become strategic tools driving business efficiency and performance. As contract ownership expands beyond legal teams to include finance, operations, and procurement, organizations are rethinking how they manage contracts.
This shift demands more collaborative and intuitive contract lifecycle management (CLM) software that balance efficiency, compliance, and cross-functional needs. In this article, we explore the drivers of this transformation and its impact on modern business practices.
The evolving role of contract ownership: a cross-functional imperative
A recent survey that we conducted in our Agreement Intelligence Market Report reveals a significant shift in contract ownership, with 100% of respondents highlighting that it is no longer confined to the legal department. Once managed solely by lawyers and paralegals, contract lifecycle management (CLM) has become a cross-functional responsibility embraced by professionals across various departments.
Today, CFOs, finance heads, operations managers, and procurement specialists are taking on greater responsibility for the contract process. This shift reflects a deeper understanding of contracts as more than static legal documents. They are now recognized as dynamic data assets essential for achieving operational efficiency and driving financial performance.
This change is fueled by the increasing complexity of modern business environments and the growing demand for data-driven insights. One head of operations at a tech company explains, “I am in charge of everything CLM. And our legal counsel does more with the law itself,” emphasizing how contract management responsibilities are now often split between operational teams and legal professionals. This division of labor allows organizations to handle contracts more strategically, aligning them with specific business goals.
Empowering teams beyond legal
Decentralizing contract ownership empowers business units to streamline their workflows and improve efficiency. Operational teams can focus on aligning contract terms with broader organizational objectives, while legal teams concentrate on ensuring contract compliance and managing risk.
As Nikos Anthopoulos, Efficiency Manager at Navarino, puts it: “I’m under the office of the CEO. My role is to help processes and software run faster.” This insight highlights the growing priority on speed, agility, and process efficiency, which are now integral to successful contract management.
Implications for CLM solutions
These shifts place new demands on CLM systems, which must now cater to a broader audience with varying levels of legal expertise. Intuitive user interfaces, streamlined workflows, and robust reporting capabilities are crucial for enabling non-legal users to manage contracts effectively while maintaining compliance and data integrity.
However, gaps in current systems still exist. A head of finance at a healthcare organization notes that much of their contract process happens “outside of our CLM software,” particularly in areas like signing and document management. This underscores the need for CLM systems to support the entire contract lifecycle — from initiation and negotiation to execution and renewal.
The role of integrations and collaboration
Integrations with other business systems are becoming increasingly vital for enabling seamless data flow and fostering cross-functional collaboration. The challenge lies in striking the right balance between empowering business users and maintaining necessary legal oversight. A well-designed CLM system must offer the flexibility to accommodate diverse departmental needs without compromising on compliance or operational integrity.
A new era of contract management
As businesses embrace this evolution, the role of contracts continues to expand beyond traditional boundaries. Organizations that adapt to this decentralization of contract ownership — supported by modern, user-friendly CLM solutions like Concord — stand to gain a competitive edge through enhanced operational efficiency, faster processes, and more effective alignment with their strategic goals.