08 Apr CLM vs. Contract Performance Platform: the details
Every year, countless companies lose millions of dollars by failing to leverage the full potential of their contracts. We’re here to make sure that doesn’t happen to you.
Let’s take a moment to think about your company. You already have a huge number of contracts. Now let us ask you a few questions:
- Do you know and understand the key terms in all of your contracts?
- Does your finance team know the applicable payment terms for every single supplier and customer?
- Do your salespeople know which of your customer agreements expire soon, and which include the option of automatic price escalation?
- Does your ops team know the performance requirements, uptime, and delivery deadlines that your company committed to with each and every contract?
- Does your procurement team know when its audit rights need to be exercised?
If you’re like most of our clients, your company has dozens, hundreds, or even thousands of contracts – and every single contract represents rights, responsibilities, and a contribution to the bottom line.
We have just the thing for you: our Contract Performance Platform (CPP).
Breaking down the differences between a CPP and a CLM
Contracts themselves are two-dimensional, as wide as the paper they’re written upon (even if that paper only exists in the cloud). A Contract Lifecycle Management (CLM) system manages this paper. A CLM routes the contract around for approvals and signatures. It stores the contract. If you need to look over the terms of renewal, your only option is a brute force word search à la ctrl+f.
A CLM is a great tool – you can say goodbye to the never-ending layers of nesting folders in Google Drive or Dropbox and count on a CLM to keep everything organized and in one place, from first drafts to final cuts. If you need to create a new contract, you can copy-paste the clauses you want from other contracts into a new document and piece together what you need.
If your job is to generate more and more paper, e-signatures, and contractual clauses, a CLM might be helpful for you. But the contract lifecycle extends far beyond initial creation and signing. In fact, the signature is only the beginning. And that’s where we come in.
Contracts represent so much more than just a jumble of legalese on paper. These words have meaning, and they outline obligations and opportunities across your entire organization. The moment the ink is dry, these rights and responsibilities begin.
Knowing the key terms within your agreements and how to operationalize them is key to building a successful business, and a CLM won’t help you there, unless you have an attorney reading through each and every agreement, finding all the key terms, and assigning responsibilities across your organization related to said terms. A CLM can’t help you implement an agreement. But a CPP can.
A Contract Performance Platform goes far beyond the two-dimensional paper into the three-dimensional obligations of the contract itself. A CPP automatically identifies key terms in your agreements (even agreements generated on third-party paper) and allows you to trigger alerts and workflows tied to these terms, bringing your agreements to life and efficiently implementing your end of the deal.
The best Contract Performance Platforms leverage AI with attorneys-in-the-loop, allowing you to focus on what’s important: executing your agreements and making the most of your contract terms. A strong CPP can work with all contract creators – there’s no need to use templates, change corporate behavior, or shoehorn your organization into narrow requirements. The right CPP reflects the reality of doing business: it’s flexible, customizable, and powerful.
Our CPP enhances the performance of your existing teams by making them omniscient about your company’s obligations, opportunities, and the workflows necessary to take strong action.
The Bottom Line
At the end of the day, a CLM and a CPP can certainly coexist, with the former generating documents and the latter maximizing agreement performance. But a CLM could also be replaced by a word processor, an intake form, or cloud storage. A CPP could only be replaced by a large number of highly-trained, experienced attorneys working for months or years alongside a database program, detailed analysis, and careful noting of action items, calendar events, and workflows.
We’re proud to be leaders in the CPP space, offering proprietary augmented AI alongside attorneys-in-the-loop. We’re passionate about helping you save time, maximize the potential of your agreements, and leave you with peace of mind about your contracts.