Myth: CLM Belongs to Legal
While contracts are legal documents, their impact extends beyond the legal department. Contract transformation should involve other departments because contracts define relationships that belong to the entire business. Whether it’s purchasing, selling, or hiring, contractual obligations affect multiple departments. For example, security and risk teams have a vested interest in contract negotiations due to the implications for data protection and risk management.
Additionally, the teams involved in contract management may include direct contributors and those who benefit from the data and insights derived from contracts. As organizations break down functional silos, there is a growing understanding of how legal and financial commitments influence various areas of the business. Therefore, involving other departments in contract transformation is crucial for a holistic and integrated approach.