Does It Make Sense for In-House Legal Departments to Implement Contract Lifecycle Management Platforms?

In the rapidly evolving business landscape, an effective and efficient method for managing contracts and the work coming in and out of your business is crucial. Without a capable system in place, businesses run the risk of letting crucial details and work slip through the crack, potentially exposing the business to lawsuits or worse.

Many businesses are stuck deciding between the establishment of in-house legal counsel (or those that already have one in place and are considering a change) and seeking external counsel with their own systems in place. Should these internal teams implement Contract Lifecycle Management (CLM) platforms of their own or is it more advantageous to partner with outside counsel proficient in these platforms?

Advantages of In-House Legal Counsel Using CLMs

Incorporating CLM platforms within in-house legal teams can dramatically enhance operational efficiency. These systems standardize numerous processes, making routine tasks systematic and thus more efficient. Automation, a key feature of CLM platforms, saves invaluable time – a critical asset in the legal domain where every minute counts (time is money!). Furthermore, these platforms improve overall record-keeping practices. Approvals and decisions are documented systematically, eliminating reliance on potentially unreliable email archives for important records.

Disadvantages of In-House Legal Counsel Using CLMs

Despite their apparent benefits, CLM platforms implemented through in-house legal teams come with limitations and challenges. One significant hurdle is the need for continuous training. Each new hire or team addition necessitates an introduction to the system, requiring time and commitment from current team members and stakeholders – often a major hurdle at the executive level for aging professionals.

Tailoring these systems to fit specific processes and needs involves considerable manual effort, translating into high labor costs. Additionally, the financial impact of adopting a CLM system can be substantial, with basic applications often costing $20,000 to $30,000 annually. This cost falls on the business when in-house counsel is asked or required to implement these CLM programs. Not only that, but their one-size-fits-all design may not suit businesses with unique needs, presenting a flexibility challenge. These programs are designed to be able to be used by hundreds of thousands of professionals, so each individual team may not have the full customization they prefer when applied to their own lines of business.

Why Outside Counsel Utilizing CLMs Makes the Most Sense

For businesses seeking the benefits of CLM platforms without the associated hurdles, partnering with outside counsel like Ivory Law Group presents an attractive solution. Ivory Law Group offers the sophistication of CLM systems seamlessly integrated into our service delivery, eliminating the need for clients to select, adopt, or learn new software.

This ensures that clients benefit from streamlined legal services without the necessity of engaging directly with the CLM technology. Our approach simplifies the CLM software we’ve integrated into our own work by utilizing familiar tools (such as email) to update, address, and clarify any questions with our clients.

We want to eliminate the need for businesses to navigate the learning curve associated with CLM platforms, instead offering a streamlined and effective solution for managing corporate legal needs. For companies and corporations seeking reliable legal services without the overhead of an in-house team, contact Ivory Law Group to discover how our unique approach to corporate counsel can benefit your organization.

*Disclaimer: The content provided in this blog is for informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship with Ivory Law Group or any of its attorneys. For legal advice, please consult with a qualified attorney directly.

Bio
Latest Posts

Ivory Law Group

We provide fractional general counsel support for growth-stage companies, offering flexible coverage across commercial transactions, contracting, governance, capital raising, M&A, employment matters, and legal operations. Our model delivers the legal support companies need, without the cost or commitment of a full-time hire.