CLM Maturity Model
Contract lifecycle management (CLM) maturity models help organizations assess their current CLM capabilities and roadmap CLM improvements. A CLM maturity model is a framework that can be used to evaluate an organization’s contract management processes and identify opportunities for improvement. There are many different CLM maturity models available, but they all share some common features:
-A clear definition of what constitutes a “mature” contract management process
-A set of criteria against which an organization’s current contract management processes can be assessed
-A roadmap for improving contract management processes
The most widely used CLM maturity model is the Capability Maturity Model for Software (CMM), developed by the Software Engineering Institute (SEI). The CMM has been adapted for use in other domains, including contract management. There are four levels in the CMM: Initial, Repeatable, Defined, and Managed. Each level represents an increase in the maturity of an organization’s contract management processes.
The initial level is characterized by ad hoc and uncontrolled processes. At this level, there is no formal contract management system in place and contracts are often managed manually. This can lead to errors and omissions, as well as difficulty tracking and reporting on contracts.
The repeatable level is characterized by the establishment of basic contract management processes. While there may still be some manual elements to the process, there is now a higher degree of control and consistency. Organizations at this level typically have