wk conferencebooklet f-07112019-digital · apttus contract management by apttus legisway 14.6%...
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Legal Department Adoptionof Contract Lifecycle ManagementSolutions: Perspectives FromCorporate Paralegals
The paralegal has a critical and central role in the efficiency and operational effectivenessof the corporate legal department. One major function essential to the legal departmentwhere paralegals play a pivotal role is contract lifecycle management (“CLM”). Frequently paralegals are involved in most or all phases of that lifecycle, as well as managing the systems and processes in place necessary to ensure not only that nothing slips through the cracks,but also that pre-execution and execution phases move along smoothly to facilitate deal velocity, thereby adding to the legal department’s growing role as a company value driver. In light of the critical nature of the corporate paralegal’s role in CLM and in managingthe related systems and processes, NALA and Wolters Kluwer partnered to conduct a surveyacross the corporate paralegal industry to investigate various trends in how corporate legaldepartments are adopting and employing technology for CLM, including:
• The types of systems – both those streamlined for CLM,• and those repurposed for CLM – departments utilize
• The different ways departments are employing CLM software
• The trends and challenges in adoption
• The most important factors and product features in buying decisions
This report highlights high-level findings and cross-tabulations from the survey. Roughly 150 paralegals across sectors, company and department sizes, and experience levels weighedin via a series of qualitative and quantitative questions sent electronically. The most important themes our study highlights are: (i) most companies are still losing major efficiencies through over-dependence on makeshift, or informal CLM solutions through much of the contract lifecycle, and (ii) vendor support (customer service, customization, onboarding, training,legacy document and data loading) and a comprehensive framework for change managementin the legal department and throughout the enterprise are absolutely essential to achieving high adoption (and therefor successful implementation), and adapting as evolving needs(e.g., leveraging software to manage more contract lifecycle phases) scale with departmentand company size.
EXECUTIVE SUMMARY
5Insurance
7Manufacturing
8Non-profit
3Healthcare / Oil, Gas, and Energy
1Professional Services
10Retail
2Banking and/or Lending
4Real Estate and Construction
6Technology
9Hospitality, Airlines, and Transportation
TOP 10 INDUSTRYSECTORS OF SURVEYRESPONDENTS
RESPONDENTS BY COMPANY’SANNUAL REVENUE
14%Annual revenuemore than$5B
35%Annual revenue between$50M to $999.99M
34%Annual revenue less than$4.99M
16%Annual revenue between$1B to $4.99B
64%Budget of less than$1M
15%Budget between$1M to $2M
7%Budget between$2M to $5M
4%Budget between$5M to $10M
5%Budget between$10M to $20M
3%Budget ofmore than$20M
RESPONDENTSBY DEPARTMENTBUDGETS
7%Budget between$100,001 and $250,000
16%Budget between$10,001 and $20,000
52%Budget of less than$10,000
11%Budget between$20,001 and $50,000
8%Budget between$50,001and $100,000
6%Budget ofmore than$250,000
RESPONDENTSBY LEGAL SOFTWAREBUDGET
RESPONDENTS WHO USE FORMALCONTRACT LIFECYCLE
MANAGEMENT SOFTWARE
For one or more of the followingphases of CLM: Contract Request| Preparation/Drafting/Assembly Review/Negotiation/ Redlining | Approval Execution| Storage | Records Management
CLM Software
USECLM Software
22%DON’TUSE78%
Apttus ContractManagementby Apttus
Legisway14.6%
Legal Tracker,formerly Serengeti
14.6%
Contract Insightby CobblestoneSoftware
9.8%
OnBase by Hyland9.8%
Legal Suite14.6%
19.6%
Conga Contractsby Conga
4.8%
Contract Assistantby Blueridge Software
4.8%
ContractExpressby Thomson Reuters
4.8%Contract Logixby Contract Logix
4.8%
DocuVantage OnDemandby Document Advantage
4.8%
Lextreeby Berkman Solutions
4.8%
Universal Contract Managerby iContracts
4.8%
WHICH CLMSOFTWARE
DOES YOURCOMPANY
USE?
12.5 Years The Average Experienceof Legal Departments that use CLM software
COMPANIES WHO USE CLM SOFTWAREBY NUMBER OF EMPLOYEES
COMPANIES THAT USE CLM SOFTWAREBY LEGAL DEPARTMENT SIZE
53%of respondentshave less than500 employees
13%use CLMsoftware
27%use CLMsoftware
32%use CLMsoftware
29%use CLMsoftware
38%use CLMsoftware
of respondents have501 to 5000 employees
5%of respondents have5,001 to 10,000 employees
18%of respondents have1,001 to 5,000 employees
14%of respondentshave more than10,000 employees
28%
NUMBER OF LEGAL SOFTWARE USERS PER DEPARTMENT
respondents said they were
very likely to recommendtheir software to someone else
companies have been using software for
less than 5 years
54.4%
9%
1-5 SoftwareUsers
21.2%
6-10 SoftwareUsers
11-20 SoftwareUsers
15.4%
20 SoftwareUsers
NUMBER OF CONTRACTLIFECYCLE PHASES IN WHICHFORMAL CLM SOFTWAREIS USED
at least Six Phases29%
57%Two to Five Phases
14%One Phase
CURRENT NUMBER OF RESPONDENTSWHO USE CLM SOFTWAREBY PHASE
INFORMALFORMAL
Preparation/Drafting/Assembly
42.50%
Approval40.40%
Storage73.70%
Storage35.00%
Alerts/Tracking56.10%
Contract Request40.40% Contract Request
33.80%Searching/Retrieving66.70%
Searching/Retrieving
35.00%
Records Management64.90%
RecordsManagement
36.30%Review/Negotiation/Redlining
41.30%
Renewal/Disposition40.40%
Audit/Reporting/Analytics
40.40%
Respondents selected all phaseswhere formal/informal CLM softwarewas employed.
Formal Informal
Searching78%
Storage78% Approval
67%
ContractRequest
67% Review56%
Execution56%
Searching79%
Storage86%
Renewal64%
Budget less than$10,000
Budget between$10,001–
to $50,000
83%Audit
83%Records
83%
Alerts67%
Storage67%
Execution67%
Approval67%
ContractRequest
50%
Searching
Budget between$50,001–$250,000
ContractRequest
100%Audit
100%
Alerts100%
Searching100%
Storage100%
Prep75%
Review75%
Execution75%Renewal
75%
Budget more than$250,000
Records100%
MOST COMMON PHASESWHERE CLM SOFTWAREIS USED, BY DEPARTMENTSOFTWARE/LEGALTECHBUDGET
27%Use informal software for
Records Phase
27%Use informal software for
Searching Phase
61%Use informal software for
Preparation Phase55%
Use informal software forReview Phase
36%Use informal software for
Approval Phase
21%Use informal software for
Audit Phase
39%Use informal software for
Execution Phase24%Use informal software for
Storage Phase
6%Use
informal software forOther Phase
18%Use informal software for
Alerts Phase
18%Use informal software for
Renewal Phase
MOST COMMON USESOF INFORMAL CLMSOLUTIONS FOR THOSEWHO USE FORMALSOFTWARE IN 1 ORMORE OTHER PHASES
MOST COMMON PHASES WHERE CLM SOFTWAREIS EMPLOYED, BY DEPARTMENT SIZE
Prep75%
Review75%
Execution75%
Renewal75%
Searching100%
Storage100%
Records100%
Audit100%
Approval100%
legal department size between51 to 200 members
Storage80%
Searching75%
Alerts60% legal department size between
up to 10 members
Searching100%
Records89%
Storage78% legal department size between
11 to 50 members
Ease of Use67%
Price58%
Depth of Features/Functionality55%
Breadth of Features/Functionality36%
Reliability33%
API Feasibility18%
Customer Support9%
said legacy contractsand metadata were migratedinto their new systemby the vendor
ONLY47%
were very satisfied withthe overall quality of thevendor’s customer service26%
rated the process of learninghow to use their softwareas easy and intuitive
ONLY
29%
said their software requiresat least 21 hours a weekof administrative time to maintain
were very satisfiedwith training by the vendor
MOST IMPORTANTFACTORS IN CHOOSING
CLM SOFTWARE
21%
AutomatedWorkflow
27%Customizability27%
Data andDocument Relation
24%Easy DocumentStorage
24%Task andWorkflowManagement
18%
ContractPreparation
21%ContractAnalytics
18%SearchFunctionality
15%AccessControls 15%
Trackingand Alerts
ONLY
of respondentsconsideredONBOARDING to be good
21%
MOST IMPORTANTFUNCTIONALCATEGORIES INCHOOSING CLMSOFTWARE
TOP APIs CONSIDEREDMOST IMPORTANT FOR INTEGRATIONWITH CLM SOFTWARE
Docusign Other(Legal Suites, Box,BaseCamp, Navex,PeopleSoft)
Salesforce
MicrosoftOffice Applications
of respondents answeredthat CLM software wasCUSTOMIZABLE to meettheir needs
68%respondents indicated that vendor was willingto make changes or customizations
of respondents rated their vendor’s ability,speed and effectiveness with respect to makingchanges as excellent
MOST IMPORTANT FEATURE OR FUNCTIONALITY WHERECLM SOFTWARE IS EMPLOYED, BY DEPARTMENT SIZE
legal department size betweenup to 10 members
Data andDocument Relation
25%
ContractAnalytics
20%
AutomatedWorkflow
20%
AccessControls
20%
ContractApprovals
25%
legal department size between21 to 50 members
ContractAnalytics
33%
ContractApprovals
33%Data and
DocumentRelation
33%
SearchFunctionality
33% Task and WorkflowManagement
22%
AutomatedWorkflow
44%
Easy DocumentStorage
and OrganizationalFunctionality,
30%
legal department size between51 to 200 members
Integration withInternal Systems
25%
Task andWorkflow
Management
25%
AccessControls
25%AutomatedWorkflow
25%
Easy DocumentStorage and
OrganizationalFunctionality
25%
ContractApprovals
50%
Data andDocument
Relation
25%
Reliability17%
MOST IMPORTANT CLM SOFTWARE PURCHASEDECISION FACTORS, BY RESPONDENTS’ LIKELIHOODTO RECOMMEND THEIR CLM SOFTWARETO A COLLEAGUE
Ease of Use67%
Breadthof Features/Functionality
17%
VeryLikely to
Recommend
Ease of Use18%
Price
45%Reliability9%Somewhat
Likely toRecommend
Breadth ofFeatures/
Functionality
27% Security20%
Breadthof Features/Functionality
20%
Recommend Against
Depth ofFeatures/Functionality
40%Price
20%
with10,000
employeesor more
Task & WorkflowManagement
13% Data & DocumentRelations
25%
Access Control38%
Contract Approval& Execution
13%
MOST IMPORTANT FEATURES ORFUNCTIONALITY OF CLM SOFTWAREBY TOTAL NUMBER OF EMPLOYEES
Wolters Kluwer InfographicsData & Document
Relations
10%
Tracking & Alerts10%
ContractAnalytics
20%
Easy Document Storage& Organizational
Functionality
30%
Access Control10%
Automated Workflow10%
with less than500
employeesTask & Workflow
Management
10%
Task & WorkflowManagement
14%with
1,001 to 5,000employees
AutomatedWorkflow
29%
Data & DocumentRelations
14%
Contract Analytics14%
Contract Approval& Execution
14%Integration withInternal Systems
14%AutomatedWorkflow
50%
Easy Document Storage& Organizational
Functionality
50%
with5,001 to 10,000
employees
Access Control17%
Tracking & Alerts17%
Data & DocumentRelations
17%
Easy DocumentStorage
& OrganizationalFunctionality
17%with
501 to 1,000employees
Integration withInternal Systems
17%17%
Search
48%of respondents said their singlegreatest obstacle to achieving adoptionof CLM software issues was changemanagement challenges.
REPORT CONTRIBUTORS
Dr. Greta Zeimetz, CAE, is the CEO of the National Association of Legal Assistants, Inc. (NALA), a position she has held since 2015. Prior to NALA, Dr. Zeimetz was the Director of Education & Research of an association. She earned her Doctorate in Business Management in 2019 and holds an M.S. in Management & Organizational Behavior and a B.A. in Communications. Dr. Zeimetz is a published author and a frequent speaker at conferences and meetings. She is a member of American Society of Association Executives (ASAE) and serves on its Executive Management Section Council.
NALA is the leading paralegal association in the U.S. NALA provides current information about the profession, continuing education programs, networking opportunities, professional certification programs, occupational survey reports, and publications to help paralegals excel in the workplace. NALA is a non-profit organization, 501(c)(6), representing more than 18,000 paralegals, who are individual members or members of NALA affiliated associations.
Brian Kudowitz currently leads the Corporate Legal Department Products portfolio at Wolters Kluwer U.S. Legal & Regulatory. He has been featured in media outlets, including LegalTech News, InformationWeek, and the New York Law Journal, speaks at legal industry events on a variety of issues. He has also been named a National Law Journal Cybersecurity and Data Privacy Trailblazer. Brian earned his law degree from Washington University School of Law and is a member of the New York Bar. He also has a B.S. in materials engineering from Rutgers University.
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