Implementing a Contract Lifecycle Management System (CLMS) represents a fundamental shift in how organizations now manage their contracts to drive efficiency and mitigate risks. Managers can create a solid foundation for sustainable change by understanding and demonstrating cultural dynamics, fostering early adoption, and involving all stakeholders to break down resistance, and provide continuous support and training. This article shows how success hinges not only on selecting the right technology but also on leading people through the journey of change.
Implementing a Contract Lifecycle Management System (CLMS) represents a fundamental shift in how organizations now manage their contracts to drive efficiency and mitigate risks. Managers can create a solid foundation for sustainable change by understanding and demonstrating cultural dynamics, fostering early adoption, and involving all stakeholders to break down resistance, and provide continuous support and training. This article shows how success hinges not only on selecting the right technology but also on leading people through the journey of change.
When putting CLMS into practice, it’s important to remember that organizationl change surrounds any action taken by an organization that impacts or alters key areas like culture, infrastructure, technologies, processes, and policies. But no matter how good a system is or how well it has been technically implemented, a CLMS implementation could fail if organizational change has not been factored in or effectively managed. Why? Simply, people.
Organizational change, unfortunately, is often an overlooked, and yet an essential part of successful system implementations. According to the Knoster Model of Organizational Change,1 five elements are essential when navigating complex change:
- vision,
- skills,
- incentives,
- resources, and
- an action plan.
Applying these elements to a CLMS implementation is critical. Given that an organization is making a substantial investment when it selects, designs, and implements a CLMS, it is crucial to ensure not only the technical success of that system but also the proper alignment of people involved in the change process.
Many barriers to organizational change exist. Among the top ones are failure to involve employees in the change process, poor or inefficient communication, and resistance to organizational culture.
Failing to focus on people -- whether it’s not ensuring them a shared vision, not providing necessary skills, not motivating the team, not allocating resources, or not establishing a clear plan to follow -- can lead to setbacks and reduce the effectiveness of the system.
Instead, by incorporating a holistic approach, covering every stage, from contract award to compliance, renewal, or exit -- organizations can maximize the value of their contracts. Moreover, adhering to organizational change protocols that follow the Knoster Model1 helps safeguard the company’s assets, most importantly its people, while minimizing risks and controlling costs.
Here are five opportunities for resolution that can help everyone involved with critical organizational change when implementing a CLMS.
1. Understanding cultural differences in advanceAs you begin your CLMS implementation, assessing your organization’s cultural readiness for change is an important first step. A successful implementation requires acknowledging how this change aligns with or impacts the existing company culture.
Will the CLMS integrate well with your organization's values and operational practices? For instance, if your company culture is traditionally conservative and relies heavily on structured processes, implementing a highly flexible and loosely defined system may clash with those values, leading to resistance.
The goal of organizational change, in the context of a CLMS implementation, is to prepare your people for the transition by building engagement and minimizing resistance. By understanding and adapting to your corporate culture, you can design a system that not only meets your business needs, but also brings your team along in the journey, fostering a smoother transition and creating an environment where change can flourish.
2. Influencing adoption and inclusion
When adopting or implementing CLMS, it is critical to maintain consistent communication throughout each phase which can be identified as:
- pre-launch exploration and planning,
- design,
- development,
- execution,
- launch and
- ongoing support
Although not everyone needs to know all the details, sharing the right information at the appropriate time to the right people fosters a sense of inclusion among teams.
This approach allows employees who perform the day-to-day work to contribute valuable insights that might otherwise be missed. Engaging people early on helps them take ownership of the new system as it evolves, rather than being blindsided by sudden changes that disrupt their routines. This gradual involvement helps them accept new processes, tools, and responsibilities well before these changes take effect.
The term Inclusion is also about understanding and meeting the needs of a diverse group of stakeholders and users throughout the business areas impacted by the system. Engaging teams early on helps to address potential barriers, whether technical, generational, or related to communication styles and preferences before they negatively impact productivity and business goals.
Inclusion fosters a greater sense of engagement, demonstrates that leadership values ideas and perspectives and ultimately boosts job satisfaction. This contributes to higher retention rates, as talented staff members feel heard and valued and are more likely to work together towards solving problems, thereby positively impacting productivity.
3. Involving all stakeholders
As mentioned above in the context of adoption and inclusion, a successful CLMS implementation requires engaging stakeholders across all affected areas. This includes IT, operations, sales, communications, leadership, customer service, project management, finance, legal, procurement and contract management -- even teams that may not seem to be directly involved initially.
Additionally, stakeholders might include end-users, third-party partners, or even regulatory agencies. Communication strategies should be tailored to meet the unique needs of each group, addressing how different individuals and teams respond to change. Engaging all stakeholders ensures that you will identify potential challenges early, implement proactive measures and do both during system rollout throughout its integration into everyday operations.
4. Breaking down resistance to change
Employees may resist adopting a new CLMS for various reasons, whether emotional, cognitive, or behavioral. This resistance may be overt, like verbal objections, or covert, like micro-resistance actions that may only be noticed later, potentially after negative impacts have occurred. To address resistance effectively, it is essential to set clear expectations regarding the organization’s commitment to following system implementation guidelines.
Hosting workshops focused on system adoption can help transparently address concerns and resolve issues proactively. By providing adequate support and creating opportunities for open dialogue, teams can start building a sense of ownership around the changes, especially if they haven’t been involved in pre-launch activities.
5. Providing adequate training, mentoring, and monitoring
For a successful CLMS implementation, ongoing training, mentoring, education, and monitoring are essential. Establish effective vehicles for communication via SharePoint, Slack, or other collaboration tools2 so everyone stays informed and interacts collectively,
Offer regular training sessions, especially when new features are introduced or when specific parts of the process prove challenging. Additionally, provide one-on-one mentoring to ensure team members feel heard, supported, and motivated, as they navigate each milestone and phase of the implementation. When people have the support, recognition, and tools they need to do their jobs effectively, they are more likely to be fully engaged and invested in the system's success.
In Closing
A well-implemented CLMS, supported by a thoughtful approach to organizational change, empowers teams to embrace new ways of working, drives significant value from contracts, and ultimately helps the organization thrive in a constantly evolving business landscape. The investment in people, alongside technology, is what makes transformation successful.
ABOUT THE AUTHOR
A highly driven and seasoned global business executive with over 30 years of experience aligning international contract and subcontract management initiatives, contracts shared services operations and offshoring programs with corporate objectives. Her specialties include consulting, strategic analysis and implementation, negotiations, contract formation and drafting, international contract management, client relations, contracts due diligence and transition, staff development, mentoring, offshoring, outsourcing. She is an effective problem solver with significant achievements and a passion for new challenges.
ABOUT ABIZ
ABiz Corporation brings clarity and innovation to full lifecycle commercial contract management. They architect business models, manage contracts and educate professionals to unlock value, create efficiencies, and reduce risk. Their leadership team is highly experienced in contract management across a wide range of industries. Consultants and associates absorb a deep knowledge of all aspects of the contract lifecycle and contracting best practices. Their three core values in every client engagement are integrity, collaboration, and excellence; and they motivate clients to produce heightened innovation and superior results – within every engagement.
END NOTES
- Knoster Model of Organizational Change, New York State Library, under Managing Complex Change, DEI Toolkit, DEI Toolkit. New York State Office of Cultural Education
- Synapse article titled SharePoint vs Other Collaboration Tools: A Comparative Analysis
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