As a legal-tech lawyer, I regularly help clients to migrate contract data within their Contract Lifecycle Management (CLM) systems. Through this hands-on involvement, I see the often unforeseen challenges clients typically run into when migrating old contracts, including data, to a new CLM system. In this blog I outline the steps and considerations involved in migrating contract data to a future-proof repository and share my experiences of helping others achieve a successful outcome.
What is contract data migration and why should you consider it?
Contract data migration involves transferring old contracts and associated data from one or more storage locations to a new, centralised environment. This new environment provides a “single source of truth” for all contracts, making contract management significantly more efficient and better organised. Despite this, however, many companies continue to regard having a single repository as a low priority. Why? Frequently this is due to limited resources, a lack of urgency or a lack of technical knowledge. The picture quickly changes, however, following a merger or acquisition, when the disadvantages of not having a centralised storage environment can become painfully evident.
The different roles in a migration project
Whenever clients ask me to assist them during a migration project, I start by clarifying who does what, categorising this into three main roles: the client’s project team (usually the legal department combined with procurement, sales and IT), the new CLM provider and the implementation partner.
The client’s project team is responsible for gathering the contracts and the metadata. The new CLM provider performs the technical part of the migration and sets up user rights in the new environment. The implementation partner is usually responsible for the organisational/business-sensitive aspect of the migration.
This division of responsibility between CLM provider and implementation partner makes sense because while the CLM partner is familiar with the system and knows how to implement it, technically, within the client’s IT landscape, they often aren’t aware of the business-sensitive aspects of such a migration. The implementation partner understands the organisation, knows what is important to various stakeholders, and serves as a bridge between the client and the new CLM provider.
Phases of a contract data migration
A successful migration involves different phases. In my view, it starts with an inventory of the old repository and digging into how the contracts are organised. I deep dive into the existing folder structure, contract status, various metadata, data output, document formats and integrations with other systems. Mapping out the current setup of the existing database helps me to better understand the client’s workflows and why certain elements are organised in a particular way. This information forms the basis for uncovering and inventorying the client's needs for what comes next.
A new repository offers an opportunity for improvement. Clients sometimes want to change the structure compared with what they had before. However, while often a good idea, clients don’t always realise the impact this change will have on the migration. My role therefore includes explaining the complexities that arise from their choices. For example, I always ask how they want to set up access for different departments and which metadata they want to retain or adjust, explaining the consequences of their choices and alternative options.
Once the requirements are clear, we can start with the preparations. The old system is exported to spreadsheets containing both contract information and metadata. Data consistency is crucial here; for example, dates must have the same format. I always discuss any discrepancies with the client before proceeding with the next steps.
The migration itself usually proceeds smoothly, though how smoothly can depend on the degree of automation. I always recommend starting with a test batch. For example, we might migrate ten contracts, with associated metadata, to verify that everything is working properly, so preventing issues arising during the final migration of all data.
Once that has been done, most clients want to set up their user access. Here it is essential that access groups and permissions are in line with the old structure and the client’s requirements.
My tips for a successful migration
My experience tells me that most clients find a contract data migration very complex and challenging. And sometimes they underestimate it, resulting in a failed migration. Here then are my key tips for a successful migration:
• Good preparation: Good preparation is half the battle. Properly identifying stakeholders and their roles, contracts with various metadata and integrations with other systems will reduce problems at a later stage in the migration.
• Manage stakeholder expectations: Stakeholders sometimes expect migration to be a simple process, when often more is involved. A clear communication plan, shared with all stakeholders before the project begins, is essential here.
• Check data quality: From my experience, I see that clients are not always aware of the quality and structure of their contracts and metadata. This initial inventory is crucial for a successful migration.
• Engage an implementation partner: As an implementation partner, migrating involves me acting as an intermediary between the client and the CLM provider. My experience is that CLM providers typically see contracts only as numbers; the client and I, however, see them as unique business documents with individual metadata. I have seen cases where the client, working without an implementation partner, did not understand how to technically configure a metadata field such as “expiration date”. Conversely, the CLM provider did not understand why it was important to the client to structure this metadata output in a certain way. As an implementation partner, I always ensure I speak both languages and can translate between the client and the CLM provider. Engaging an implementation partner can be essential for a successful migration.
Contract data migration is a technically complex process but also a valuable step towards more efficient and transparent contract management. With proper preparation, thorough inventorying and attention to every detail, a migration can be successful and provide real added value to any company.
Curious about what we can do for you? Contact:
Luc van Daele, lvandaele@legadex.com, +31 (0)6 – 2061 3136
Marloes Prosec – Kuijt, mprosec-kuijt@legadex.com, +31 (0)6 – 1148 8782