Organizational change is often an overlooked, yet essential element of successful system implementations. What exactly is organizational change? It encompasses any action taken by an organization that impacts or alters key areas such as culture, infrastructure, technologies, processes, and policies. No matter how good a system is or how well it has been technically implemented, a Contract Lifecycle Management System (CLMS) implementation could fail if organizational change has not been factored in or effectively managed. Why? Simply, people.
According to the Knoster Model of Organizational Change, five elements are essential when navigating complex change: vision, skills, incentives, resources, and an action plan. Applying these elements to a CLMS implementation is critical. A lack of focus on the people element, whether it’s ensuring a shared vision, providing necessary skills, motivating the team, allocating resources, or establishing a clear plan, can lead to setbacks and reduce the effectiveness of the system. Given the substantial investment in selecting, designing, and implementing a CLMS, it is crucial to ensure not only the technical success of the system but also the alignment of people with the change process. Organizations can maximize the value of their contracts by incorporating a holistic approach, covering every stage from contract award to compliance, renewal, or exit. Moreover, adhering to organizational change protocols in line with the Knoster Model 1 helps safeguard the company’s assets, most notably its people, while minimizing risks and controlling costs.
There are many barriers to organizational change, including failure to involve employees in the change process, poor or inefficient communication, and resistance to organizational culture shift among the top barriers. Here are five areas we’ve identified to focus on to help everyone involved with critical organizational change opportunities when implementing a CLMS.
1. Understanding Cultural Differences in Advance
As you embark on your CLMS implementation, assessing your organization’s cultural readiness for change is an important first step. A successful implementation requires acknowledging how this change aligns with or impacts the existing company culture. Will the CLMS integrate well with your organization’s values and operational practices? For instance, if your company culture is traditionally conservative and relies heavily on structured processes, implementing a highly flexible and loosely defined system may clash with those values, leading to resistance. The goal of organizational change, in the context of a CLMS implementation, is to prepare your people for the transition by building engagement and minimizing resistance. By understanding and adapting to your corporate culture, you can design a system that not only meets your business needs, but also brings your team along the journey, fostering a smoother transition and creating an environment where change can flourish.
2. Adoption and Inclusion
During a CLMS implementation, maintaining consistent communication throughout each phase—pre-launch exploration and planning, design, development, execution, launch, and ongoing support—is crucial. While not everyone needs to know all the details, sharing the right information at the appropriate time fosters a sense of inclusion among teams. This approach allows employees who perform the day-to-day work to contribute valuable insights that might otherwise be missed. Engaging people early on helps them take ownership of the new system as it evolves, rather than being blindsided by sudden changes that disrupt their routines. This gradual involvement helps them accept new processes, tools, and responsibilities well before these changes take effect.
Inclusion is also about understanding and meeting the needs of a diverse group of stakeholders and users throughout the business areas impacted by the system. Engaging teams early on helps to address potential barriers, whether technical, generational, or related to communication styles and preferences, before they negatively impact productivity and business goals. Inclusiveness fosters a greater sense of engagement, demonstrates that leadership values ideas and perspective, and ultimately boosts job satisfaction. This contributes to higher retention rates, as talented staff members feel heard and valued and are more likely to stay and work together towards solving problems, thereby positively impacting productivity.
3. Involving All Stakeholders
As mentioned above, in the context of adoption and inclusion, a successful CLMS implementation requires engaging stakeholders across all affected areas. This includes IT, Operations, Sales, Communications, Leadership, Customer Service, Project Management, Finance, Legal, Procurement, and Contract Management, even teams that may not seem directly involved initially. Additionally, stakeholders might include end-users, third-party partners, or even regulatory agencies. Communication strategies should be tailored to meet the unique needs of each group, addressing how different individuals and teams respond to change. Engaging all stakeholders ensures that potential challenges are identified early and that proactive measures can be implemented, both during the rollout of the system and throughout its integration into everyday operations.
4. Breaking Down Resistance to Change
Employees may resist adopting a new CLMS for various reasons, whether emotional, cognitive, or behavioral. This resistance may be overt, like verbal objections, or covert, like micro-resistance actions that may only be noticed later, potentially after negative impacts have occurred. To address resistance effectively, it is essential to set clear expectations regarding the organization’s commitment to following system implementation guidelines. Hosting workshops focused on system adoption can help transparently address concerns and resolve issues proactively. By providing adequate support and creating opportunities for open dialogue, teams can start building a sense of ownership around the changes, especially if they haven’t been involved in pre-launch activities.
5. Providing Adequate Training, Mentoring, and Monitoring
For a successful CLMS implementation, ongoing training, mentoring, education, and monitoring are essential components. Establish effective vehicles for communication via SharePoint, Slack, or other collaboration tools so everyone stays informed and has opportunities to interact collectively. Offer regular training sessions, especially when new features are introduced or when specific parts of the process prove challenging. Additionally, provide one-on-one mentoring to ensure team members feel heard, supported, and motivated as they navigate each milestone and phase of the implementation. When people have the support, recognition, and tools they need to do their jobs effectively, they are more likely to be fully engaged and invested in the system’s success.
In Closing
Implementing a Contract Lifecycle Management System is more than just a technical project—it’s a fundamental shift in how an organization manages its contracts, drives efficiency, and mitigates risks. Success hinges not only on selecting the right technology but also on leading people through the journey of change. By understanding cultural dynamics, fostering early adoption and inclusion, involving all stakeholders, breaking down resistance, and providing continuous support and training, organizations can create a solid foundation for sustainable change. A well-implemented CLMS, supported by a thoughtful approach to organizational change, empowers teams to embrace new ways of working, drives significant value from contracts, and ultimately helps the organization thrive in a constantly evolving business landscape. The investment in people, alongside technology, is what makes transformation effective and enduring.
Engaging with outside expertise to help you navigate the change is a solid investment, and the outcomes are significant. At ABiz Corporation, our success is based on never assuming the way we’ve done things in the past will work for your needs. It’s why our clients and partners value us as the most innovative and solution-oriented partner in the industry and why we take the extra step to align your organization’s culture with people management. Contact us today for a complimentary discovery call regarding how we can partner with you in any contract and commercial management transformation program.
Author: Nancy Nelson, President, ABiz Corporation, Contract Management Innovators
1. Knoster Model of Organizational Change, New York State Library, under Managing Complex Change, DEI Toolkit, DEI Toolkit, New York State Office of Cultural Education