Rethinking contract lifecycle management – Strategic insights for business and public administration

August 2025

In today’s complex business and public sector environments, effective contract management is more critical than ever. Contracts govern key business relationships, from supplier agreements and customer arrangements to strategic partnerships. In this BearingPoint insight, we examine the current state of contract lifecycle management (CLM) and share actionable recommendations for building resilient, future-proof contract management across the enterprise.

Contract management in transition

Contract lifecycle management (CLM) covers the entire lifecycle of a contract from requirements identification, drafting, negotiation, and signing to implementation, renewal, and termination. This process is often complex and carries numerous risks. For example, missed deadlines, unmet obligations, or unclear communication can lead to significant financial and legal consequences.

To manage this complexity, organizations are increasingly focused on automating, standardizing, and strategically managing all contract processes. A CLM system helps organizations manage contracts more efficiently, minimize risks, and ensure regulatory compliance. Yet, despite contracts being at the core of business operations, contract management often remains underestimated as a strategic control tool.

The study’s findings underscore this gap. While 59% of surveyed companies regularly or frequently deal with contract management, with another 29% are at least occasionally involved, 74% currently do not use a dedicated CLM tool. Given this, it is no surprise that the risks of inadequate contract management are clearly recognized. Content-related risks are considered particularly relevant by 42% of respondents, with 36% also citing organizational weaknesses, such as inefficient processing. Furthermore, 43% cite missed deadlines as a key challenge, and 34% cite a lack of up-to-date information.

To address these challenges, many companies are now investing in developing their contract management capabilities. Roughly two-thirds of respondents advocate for systematically evaluating collected experiences, especially by incorporating feedback from employees who work directly with contracts. New technologies are also viewed as an opportunity: 66% of respondents see the increased use of AI in contract management as a positive. Despite this openness, actual AI use remains limited: only 24% of companies use AI for document creation, and just over 10% use it to review contract content for legal or internal compliance. Automation is more advanced, with at least 25% of companies having already invested in digital contract creation or automated workflows. 

Insights through perspectives: Three roles, three viewpoints

Contract management is not an isolated process; it is at the intersection of multiple roles, objectives, and expectations across an organization. To make the study results tangible and practical, the analysis focuses on three key roles that are regularly involved in contract processes: legal, procurement, and executive management. Each role brings its own expectations, challenges, and perspectives, shaping how contract processes are experienced and designed within the organization.

Instead of abstract numbers, the study uses personas – fictional yet realistic representatives of these roles. They help contextualize the findings, identify typical patterns, and highlight areas where organizations can take action. The personas are based on quantitative and qualitative feedback from respondents and exemplify the diversity of perspectives in contract management.

Legal

Survey results from legal departments show a nuanced picture of the state of digitalization in legal workflows. Overall, there is strong openness to digital technologies, especially AI, although practical implementation remains limited.

Procurement

Procurement staff often rely on extensive experience in contract creation and act largely independently, according to the survey. At the same time, there is a growing desire to collaborate with other departments, with the hope that technology can help achieve this.

Executive management

CLM systems enable executives to access relevant information at any time, making them essential for strategic alignment. In practice, however, the benefits of these systems often go unused, as many functions are not utilized and processes are insufficiently standardized.

Shared challenges across roles

Despite their differing responsibilities, the three roles (legal, procurement, and executive management) share a common goal: to make contract management more efficient, transparent, legally secure, and future-ready. What unites all three roles is the desire for clear, reliable processes and better collaboration.

Legal wants to be involved early to minimize legal risks. Procurement seeks more transparency and legal support without losing control over its tasks. Executive management sees contract management as a strategic control tool, provided the necessary information is structured, up to date, and centrally available.

The findings also highlight that the willingness to change is widespread. Organizations are aware of the risks, understand the potential of digitalization, and are ready to modernize. What is often missing is an integrated, organization-wide approach. Modern contract management is not the responsibility of a single department but a company-wide task. Breaking down silos leads to more efficient and secure processes and better adherence to existing standards.

Recommendations for action

Effective contract management is a strategic success factor for both private and public organizations. It strengthens legal security and compliance, enhances efficiency, and improves transparency. Yet success depends not only on technology, but on understanding where the organization stands in its maturity journey.

Not every company is ready to implement a comprehensive CLM system. A step-by-step approach is recommended, starting with an analysis of existing processes and systems, followed by clear goal-setting and the selection of suitable tools. The value of CLM does not come from digitalizing individual steps, but from viewing contracts holistically as a strategic control element. Based on the study results and our consulting experience, we offer 10 actionable recommendations. Get to know the recommendations.

Our contribution to your success

Turning strategic goals into measurable impact requires more than just technology. It calls for a structured approach, practical expertise, and deep organizational understanding. That’s where BearingPoint comes in.

With our experience, methodological expertise, and deep understanding of processes and organizations, we work with you to develop contract management solutions tailored to your company.

At BearingPoint, we support our clients holistically, from initial analysis to the sustainable implementation of a CLM. Whether you’re just starting your transformation, already using a tool, or looking to enhance an existing system, our services are tailored to your specific challenges and maturity level. Our goal is to help you establish contract management as a strategic success factor. Together, we create measurable value across the entire contract lifecycle.

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