wk conferencebooklet f-07112019-digital · apttus contract management by apttus legisway 14.6%...

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




3%Budget ofmore than$20M

RESPONDENTSBY DEPARTMENTBUDGETS

7%Budget between$100,001 and $250,000


52%Budget of less than$10,000


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


Searching Phase


Preparation Phase55%

Use informal software forReview Phase


Approval Phase


Audit Phase


Execution Phase24%Use informal software for

Storage Phase

6%Use

informal software forOther Phase


Alerts Phase


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%


ContractAnalytics

33%

ContractApprovals

33%Data and

DocumentRelation

33%

SearchFunctionality

33% Task and WorkflowManagement

22%

AutomatedWorkflow

44%

Easy DocumentStorage

and OrganizationalFunctionality,

30%


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.

Wolters Kluwer Legal & Regulatory U.S. is a trusted source for expert content and solutions in the areas of law, corporate compliance, health compliance and reimbursement, and legal education. Our authoritative expertise is unparalleled, bringing the insight our customers need to interpret today’s complex rules and regulations in the way that is most relevant to them. Best-practice resources—for example, effacts—are available from www.effacts.com/us/ To learn more about how to harness the power of effacts, contact the effacts sales team.

CONTACT DETAILS FOR FURTHER INFORMATION ABOUT WOLTERS KLUWER AND NALAWolters Kluwer Legal & Regulatory U.S.: To learn more, contact your sales team at [email protected]

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