How to choose the right contract management software for your business

The evolution from document storage to strategic advantage

Poor contract management costs businesses a staggering $2 trillion per year globally, according to a recent Deloitte and DocuSign study . This financial drain stems from missed renewals, unfavorable terms, and compliance breaches that can siphon millions from a company’s bottom line. As businesses face increasing pressure to optimize operations and control costs, contract lifecycle management (CLM) has evolved from a legal necessity to a strategic imperative.

Contracts are no longer just static legal documents but dynamic, data-rich assets crucial to a company’s financial health. This shift is especially pronounced in corporate finance departments, where contracts are increasingly viewed as strategic tools for driving operational efficiency, smart financial planning, and ultimately, greater profitability.

Contract ownership is evolving beyond the legal department. CFOs, finance heads, operations leaders, and procurement specialists are all taking greater ownership of the contract process, reflecting a fundamental change in how organizations perceive agreements.

“I am in charge of everything CLM. And our legal counsel does more with the law itself,” explains one head of operations at a tech company, highlighting the division of labor where operational aspects of contract management fall outside the traditional legal purview.

This comprehensive guide will help you navigate the complex landscape of contract management solutions, providing a framework for selecting the right software for your unique business needs.

Understanding the contract lifecycle management evolution

Before diving into selection criteria, it’s essential to understand how contract management has transformed in recent years.

From legal document to strategic asset

The contract management landscape has fundamentally changed. No longer confined to lawyers and paralegals, CLM is becoming a cross-functional imperative across organizations. This decentralization empowers business units to manage their contracts more efficiently, aligning contract terms with specific business objectives.

Nikos Anthopoulos, Efficiency Manager at Navarino, explains this shift: “I’m under the office of the CEO. My role is to help processes and software run faster.” This illustrates how operational teams are taking a more active role in CLM, focusing on speed and efficiency.

The visibility challenge

The lack of real-time visibility into contract data is a major pain point for organizations. This isn’t simply about locating contract files; it’s about accessing the critical data within them to inform strategic decisions.

Gaia Olcese, Procurement Manager at Satispay, vividly illustrates this common struggle: “Better visibility would be amazing. We have more than 12,000 contracts, and their data is not sorted.”

This inability to quickly find and analyze contract data hinders proactive management, creates inefficiencies, and exposes organizations to unnecessary financial risk. The demand for real-time visibility translates directly into a need for robust reporting and search capabilities within CLM systems.

Jonathan Chang, VP of Finance at Kojo, emphasizes the importance of document control: “At the end of the day, we just need to make sure that we have that paper trail.”

Key criteria for selecting contract management software

When evaluating CLM solutions, consider these essential factors that align with your organization’s specific needs:

1. Data accessibility and visibility

Finance teams require customizable dashboards, automated alerts, and advanced analytics to proactively manage their contract portfolio. Granular search functionality is especially crucial because teams need to quickly pinpoint specific clauses, key terms, and financial obligations within lengthy agreements, not just retrieve the entire document.

One CFO of a healthcare organization emphasizes this point: “When I query in our legacy software, the search brings up the document, but it’s a hundred-page document. The software is not showing me where it is in the document.”

Look for: Advanced search capabilities that can locate specific clauses and terms within documents, not just the documents themselves.

2. Integration capabilities

Seamless integrations between CLM systems and other core business applications are no longer a luxury but a necessity. For finance and operations teams, the key is to prioritize integrations that maximize business value and drive tangible financial outcomes.

Integrating CLM with existing financial systems—particularly ERPs and CRMs—is paramount. This creates a unified ecosystem where contract data flows seamlessly between applications, eliminating manual data entry, reducing errors, and enabling real-time reporting.

Christopher Tufts, FP&A Manager at Iterable, reinforces this need: “An integrated CLM is important so we can serve all our principal audiences from the same system.”

Look for: Native integrations with your existing business systems, particularly CRM, ERP, and procurement platforms.

3. AI-powered capabilities

AI is rapidly transforming contract analysis, offering increased efficiency, reduced risk, and deeper insights. Automated data extraction, a key AI application, can extract key terms like parties, lifecycle dates, dollar amounts, and contract types—saving hundreds of hours of manual data entry.

Beyond data extraction, AI is being used for clause identification, risk scoring, anomaly detection, and compliance monitoring. These applications offer significant efficiency gains, freeing up legal and finance professionals from tedious manual review and allowing them to focus on higher-value activities.

Michael Bearman, Chief Legal & Safety Officer at Vecna Robotics, describes the impact: “I used to have to spend lots of time on this, but now I just hit ‘create document’ because the AI does a great job automatically. The AI helps me track the lifecycle information. So I’ve been able to rely on it.”

Look for: AI tools that balance automation with human oversight, particularly for data extraction and contract analytics.

4. Proactive renewal management

Effectively managing contract renewals remains a persistent challenge with significant financial implications. Missed renewals translate to lost cost savings, unexpected budget overruns, and potential service disruptions.

David Morgan, CFO at Loop Returns, succinctly captures the pain: “We’ve passed an auto-renewal cut-off date, and now we’re locked in.” This highlights the financial repercussions of delayed decision-making.

The cornerstone of proactive renewal management is timely identification of upcoming deadlines. Automated alerts and workflow triggers are crucial for keeping track of key dates, ensuring renewals are addressed proactively, not reactively when it’s often too late.

Look for: Automated notification systems that alert stakeholders to upcoming renewals, expirations, and other critical dates.

5. User experience and adoption

CLM solutions must cater to a wider range of users with varying levels of legal expertise. Intuitive interfaces, streamlined workflows, and robust reporting capabilities are essential for empowering non-legal users while maintaining compliance and data integrity.

The flexibility of the system is also crucial. Sarah Eisenhauer, Director of Bids, Proposals, and Pricing at Follett School Solutions, explains: “The best part about Concord is it’s so flexible. So we didn’t have to go through a huge change in process.”

Look for: Intuitive interfaces that don’t require extensive legal training, with customizable workflows that can adapt to different departments’ needs.

6. Data centralization and single source of truth

The concept of a “single source of truth” for contract data is a powerful ideal. However, achieving this ideal is complex. Data silos, where contract information is scattered across ERPs, CRMs, specialized tools, and even email inboxes, are the primary obstacle to accurate reporting, forecasting, and informed decision-making.

Dan Murphy, a software CFO, captures this aspiration: “The source of truth is always the general ledger, at least from a CFO’s perspective, regardless of anything else.”

But the reality is that contractual obligations and financial data are often misaligned across systems. One head of operations at a tech company provides a concrete example: “We do these changes in our invoicing system, but it’s not something that is reflected in our CLM.” This disconnect between invoicing and contract data creates a fragmented view of customer relationships and can impact revenue recognition.

Look for: Systems that serve as a central contract repository with strong data governance capabilities and integration with financial systems.

Contract management software selection framework

When evaluating potential solutions, consider using this structured approach:

Evaluation Criteria	Questions to Ask	Importance
Data Accessibility	Can users easily find specific clauses? Does the system provide granular search?	High
Integration Capabilities	Does it connect with your CRM, ERP, and other core systems? Is data synchronized in real-time?	High
AI Capabilities	How does the system use AI for data extraction, analysis, and insights? Is there human oversight?	Medium-High
Renewal Management	Does it provide automated alerts for key dates? Can it track renewal terms and conditions?	High
User Experience	Is the interface intuitive for non-legal users? Can workflows be customized by department?	Medium-High
Data Centralization	Does it serve as a true “single source of truth”? How does it handle document versions?	High
Implementation & Support	What is the implementation timeline? What ongoing support is provided?	Medium
Security & Compliance	How does it handle sensitive data? Does it support your compliance requirements?	High
Scalability	Will it grow with your business? Can it handle increasing contract volumes?	Medium-High
Cost & ROI	What is the total cost of ownership? What tangible ROI can you expect?	Medium-High

The implementation journey: phases for success

Selecting the right software is only the beginning. A phased implementation approach maximizes your chances of success.

Phase 1: Quick wins (within 3 months)

For all stakeholders: Conduct a contract inventory audit. Identify where contracts are stored, what data is captured, and where inconsistencies exist. This will provide a baseline for improvement and inform technology decisions.

For operations: Implement standardized naming conventions and tagging within your existing CLM system (or shared drives if a dedicated CLM is not yet in place). This will improve searchability and lay the groundwork for future automation.

For finance: Start tracking key contract metrics, such as the number of active contracts, total contract value, and average contract cycle time. This will provide visibility into current contract performance and help identify areas for improvement.

Phase 2: Short-term priorities (within 6-12 months)

For finance leaders: Evaluate and select a CLM solution that prioritizes data accuracy, robust reporting and analytics (including customizable dashboards with real-time data on contract expirations, financial obligations, and key milestones), and seamless integrations with existing financial systems (ERPs and CRMs). Look for solutions offering AI-powered data extraction and renewal management capabilities.

For operations: Implement automated alerts for key contract dates (e.g., renewals, deadlines) and begin exploring AI-powered solutions for automating data entry and basic contract analysis. Focus on improving data hygiene and streamlining contract workflows.

For legal: Establish clear guidelines for AI usage within the contract review process. Maintain human review and validation of AI-generated insights and maintain legal oversight of all automated processes. Collaborate with Finance and Operations to define data standards and ensure data consistency across systems.

Phase 3: Long-term investments (12+ months)

For all stakeholders: Foster a culture of contract awareness through training and communication. Establish clear roles and responsibilities for contract management across different functions and regularly communicate contract-related updates, deadlines, and potential risks.

For finance leaders: Explore advanced CLM capabilities such as AI-powered risk scoring, anomaly detection, and predictive analytics. Develop a strategy for leveraging contract data to inform strategic decision-making and drive business value. Track KPIs like contract cycle time reduction, cost savings achieved through renegotiations, and compliance improvement to demonstrate ROI.

For operations and legal: Refine and optimize CLM workflows based on data and user feedback. Continuously evaluate and implement new technologies and best practices to enhance contract management efficiency and effectiveness.

Success stories: transforming contract management with the right software

Organizations across industries have achieved significant improvements by implementing the right CLM solution:

Pima Community College: optimized workflows boost grant funding

Pima Community College relies heavily on grants and contracts—representing 20% of its annual operating budget—to fund vital programs and support its students. Before implementing a comprehensive CLM solution, PCC faced significant challenges with tracking communications, managing workflows, and accessing data for grant applications.

After adopting Concord to centralize communication and streamline grant and contract workflows, PCC transformed its processes. “It gives us the ability to have those discussions right in the discussion tab,” explains Julie Delayo, Executive Director for Sponsored Programs, Grants and Contracts. “And it sends out emails so everybody stays in the loop.”

The impact was substantial. Centralized communication and streamlined workflows significantly improved efficiency. The time required to secure General Counsel approvals decreased significantly, and the overall contract development cycle was shortened by a wide margin. This increased agility directly translated into an increase in successful grant applications in the first year, representing additional funding for critical student programs.

Yates Construction: standardized workflows save time and money

With 5,000 employees across 15 regional divisions, Yates Construction faced challenges managing numerous large-scale projects, each involving multiple agreements with subcontractors and vendors. Each regional office followed its own contracting procedures, resulting in fragmented signing experiences, limited visibility into contract data, and no centralized repository.

After implementing Concord’s centralized repository and automated workflows, Yates Construction saw immediate benefits. “All messages and comments live right inside the agreement,” says Jenny McMullen, Corporate Contract Administrator. “Instead of five separate email chains, we’ve got everything in one place now.”

The automated workflows eliminated manual tasks like emailing contracts and tracking versions, saving the company $15,000 per month in reduced administrative overhead—a 25% reduction in contract administration costs. Beyond direct cost savings, streamlined approval workflows reduced contract turnaround times from weeks to hours.

Vecna Robotics: AI simplifies contracting and renewals

Vecna Robotics, a leader in flexible material handling automation solutions, struggled with tracking deadlines and key contract data across disparate systems. This lack of centralized visibility and administrative burden of manual data entry hindered proactive contract management.

By implementing AI-powered contract management, Vecna Robotics transformed its processes. “I used to have to spend lots of time on this, but now I just hit ‘create document’ because the AI does a great job automatically,” explains Michael Bearman, Chief Legal & Safety Officer. The AI automatically extracts key information, including parties involved, lifecycle dates, and contract duration, without requiring manual input.

This streamlined approach allows the finance team to access reliable contract data for reporting, forecasting, and budgeting. By automating data entry, Concord freed up an estimated 10 hours per week for Vecna Robotics’ team, enabling them to focus on higher-value activities.

The future of contract management: emerging trends

As you evaluate solutions, keep these emerging trends in mind:

1. AI-powered insights transforming analysis

Extracting actionable intelligence from contracts is no longer a futuristic fantasy. Artificial intelligence is transforming how businesses analyze, understand, and manage their agreements—unlocking valuable insights that drive better decision-making, mitigate risk, and optimize financial performance.

While enthusiasm for AI is high, it’s tempered by valid concerns about data security, algorithmic bias, and accuracy. Hannah Lane, Contract Specialist at Phia Group, articulates a common sentiment: “I don’t trust AI for analyzing agreements.” This distrust stems from recognizing that AI, while powerful, is not infallible.

Organizations must prioritize data security, address potential bias, and maintain human oversight to ensure responsible and effective AI deployment.

2. The evolution of contract negotiation

While digital tools are impacting the mechanics of contract negotiation, the fundamental human element remains crucial. Technology has undeniably changed negotiation dynamics, with real-time collaboration tools and online redlining features expediting certain aspects of the process. However, these same tools can introduce new friction points when dealing with varying levels of technological adoption among negotiating parties.

One contract specialist at a healthcare organization notes: “It really does depend. We’ve had calls recently for over an hour going line by line through a contract, but we’ve also gone through redlines in Word or in Concord over email.” This highlights the need for flexible solutions that can accommodate both traditional and modern negotiation approaches.

3. The rise of benchmarking and analytics

Benchmarking contract spending against industry peers is increasingly recognized as a valuable strategy for optimizing pricing, realizing cost savings, and gaining a competitive edge. The strategic value of benchmarking lies in understanding prevailing market rates, empowering finance teams to negotiate better terms with vendors, avoid overspending, and maximize value.

David Morgan, CFO at Loop Returns, notes: “I really, really like the idea of being able to benchmark your contracts.” However, he points to a critical flaw in many current tools: “It sounds more useful than it is. It conflates volume and rate.” This aggregation issue, where total contract value masks critical pricing nuances, renders data less actionable.

Finance professionals need more than just average contract values; they require granular insights into pricing tiers, discounts, and other cost drivers. The future of benchmarking lies in leveraging AI and machine learning to deliver tailored recommendations based on an organization’s unique context.

Frequently asked questions

Conclusion: transforming contracts from cost center to profit driver

The shift in how organizations view contract lifecycle management is fundamental. Contracts are no longer seen as static legal documents but as dynamic data assets that can drive significant business value—and contribute directly to a healthier bottom line.

A common thread unites successful CLM implementations: unlocking actionable insights from contract data. By gaining real-time visibility into key terms, obligations, and deadlines, organizations achieve tangible results:

• Improved efficiency: Automated workflows, contract automation, and streamlined processes free up valuable time and resources
• Enhanced visibility: Centralized contract repositories and robust reporting provide real-time access to critical contract data
• Reduced risk: AI-powered analysis, standardized templates, and improved version control mitigate errors and compliance issues
• Optimized spending: Proactive renewal management and data-driven negotiations enable organizations to maximize contract value

By approaching CLM strategically and focusing on the business value it delivers, organizations can transform their contracts into a source of competitive advantage.

The key is selecting a solution that balances technological innovation with human expertise, provides seamless integration with existing systems, and empowers all stakeholders—from legal to finance to procurement to healthcare—to contribute to the contract management process.

Ready to transform your approach to contract management? Schedule a demo with a contract expert to discuss your specific needs and discover how Agreement Intelligence can drive value for your organization.

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About Concord

Concord empowers growing businesses to make smarter operational decisions by unlocking actionable insights from all their contracts using Agreement Intelligence. Trusted by over 1,500 companies and 1 million users worldwide, Concord enables people to swiftly sign agreements and easily access crucial business data.