CLM Maturity Level

Contract lifecycle management (CLM) maturity level is a way to measure how effective and efficient an organization’s CLM process is. There are four levels of CLM maturity: ad hoc, repeatable, managed, and optimized.

Ad hoc CLM is the most basic level of maturity, where there is no formalized process for managing contracts. Organizations at this stage typically have little to no visibility into their contract portfolio and manage contracts on an individual basis.

Repeatable CLM is the second level of maturity, where organizations have established a basic process for managing contracts. Although there is still room for improvement, organizations at this stage have more visibility into their contract portfolio and can start to standardize some aspects of their contract management.

Managed CLM is the third level of maturity, where organizations have formalized and standardized their contract management process. Organizations at this stage have complete visibility into their contract portfolio and can proactively manage contracts throughout their lifecycle.

Optimized CLM is the fourth and highest level of maturity, where organizations not only have a formalized and standardized contract management process, but also continuously strive to improve it. Organizations at this stage are constantly looking for ways to optimize their CLM process in order to better meet their business needs.