The latest episode of the Contract Heroes Podcast features Susan Zagorski, Legal Operations Director at FMC Corporation, who shared her journey implementing a Contract Lifecycle Management (CLM) system that revolutionized FMC’s approach to contract management. With decades of experience in legal operations and system implementation, Susan brings valuable lessons to organizations struggling with inefficient processes, making this episode a must-listen for anyone struggling with outdated contract management practices.
Meet Susan Zagorski: A Leader in Legal Operations
Susan Zagorski joined FMC Corporation in 2017, bringing a wealth of expertise in legal operations and systems implementation. Over her career, she has led more than 20 system implementations, each designed to address inefficiencies and modernize processes. This made her uniquely equipped to spearhead FMC’s transition to an enterprise-wide CLM solution.
Her early experiences at FMC exposed critical pain points in FMC’s contract management processes, particularly during one of the company’s largest deals involving a simultaneous divestiture and acquisition. During this complex transaction, the legal team struggled to locate essential contract information, such as warranty clauses or assignment details, across various systems. These challenges motivated Susan to prioritize contract management as a key focus area for operational improvement, and her expertise and strategic vision have been instrumental in setting the foundation for the company’s adoption of a CLM solution.
Tackling FMC’s Contracting Challenges with a CLM Solution
Fragmented processes and decentralized contract storage posed serious hurdles to FMC’s legal and business teams. Contract retrieval often required hours of effort, with no guarantee of finding the right information. Susan explained that these inefficiencies created bottlenecks that delayed deal closures and consumed valuable resources.
As part of a broader efficiency project launched in 2021, Susan and her team conducted an in-depth assessment to identify pain points across FMC’s legal and business operations. Through surveys and interviews across departments, it became clear that Susan and her team needed to find a solution that could modernize FMC’s approach to contract management.
Defining Success: Establishing Requirements for FMC’s CLM System
Before diving into vendor selection, Susan’s team built a comprehensive list of requirements for the ideal CLM system. Key priorities included flexibility and customization to accommodate complex workflows unique to FMC’s global operations, localization to support templates and processes in multiple languages, scalability to grow alongside FMC’s evolving needs, and seamless integration with existing systems like ERP and e-signature platforms. To ensure these requirements aligned with the organization’s broader goals, Susan assembled a sub-team of regional leads and representatives from legal, procurement, and business operations. The team ranked priorities through surveys and collaborative discussions, resulting in a clear roadmap for vendor evaluation and implementation.
Selecting the Right CLM Vendor: FMC’s Evaluation Process
Choosing the right CLM vendor can be a daunting task, especially with the growing number of options in the market. Susan’s team started with a list of eight potential vendors, leveraging tools like Gartner reports, vendor demonstrations, and detailed RFP responses to narrow the options. By the final stages of evaluation, the team focused on two vendors that demonstrated strong alignment with FMC’s requirements.
Testing Functionality Through Real-World Scenarios
Susan explained that during the evaluation process, she requested sandbox environments to test each platform’s functionality. A sandbox environment is a controlled, simulated testing space where users can interact with a platform using realistic data and scenarios without affecting live operations. Susan highlighted the importance of this phase, as it allowed her team to assess critical features like workflow automation, notifications, and user experience to determine whether the platforms could handle FMC’s unique needs.
One vendor stood out for its ability to deliver exactly what was promised without over-promising or under-delivering. After rigorous testing, FMC selected Agiloft as their CLM provider, a decision that set the foundation for a successful global implementation.
Implementing CLM at FMC: A Phased and Strategic Approach
Implementing a CLM system is no small feat, and Susan’s team approached the project in carefully planned phases. The first phase focused on implementing the system for global Confidential Disclosure Agreements (CDAs) and Material Transfer Agreements (MTAs). These contract types had recently been updated and were relatively straightforward to implement, making them an ideal starting point. Despite initial plans to start with a limited rollout in North America, the general counsel advocated for a broader approach, leading to a global launch that included seven languages and six templates.
From signing the agreement with Agiloft in December 2022 to going live in May 2023, the team worked at an impressive pace. Susan credited the extensive upfront preparation—such as gathering requirements and mapping out workflows—as the reason for the system’s smooth implementation.
Driving Adoption Through Communication and Training
A major challenge in any system implementation is driving user adoption, and Susan’s team tackled this head-on with a robust communication and training strategy. They leaned on FMC’s global ethics and compliance program manager to craft a comprehensive communication plan that explained the system’s purpose and benefits. Key stakeholders, such as the general counsel and IP attorneys, created videos explaining the system’s purpose and benefits, and all the videos and training materials were translated into 12 local languages to ensure accessibility for all users. Regular updates were also provided in company newsletters to keep employees informed about the rollout timeline and expectations.
Susan also explained that the training sessions provided were tailored to different user roles, such as contract requesters, approvers, and attorneys in order to address their specific needs. Susan’s team also created on-demand training resources, including short videos and detailed slide decks, to make learning as convenient as possible and help drive adoption from the start.
Change Management: Building Excitement and Overcoming Resistance
Susan shared that change management was pivotal to the success of FMC’s CLM implementation. Introducing a new system in a large organization may cause hesitation among employees, so Susan’s team made it a priority to make the system less intimidating for users. By framing the CLM system as intuitive and similar to tools employees already used, the team reduced resistance and encouraged early adoption, and within the first week of implementation, employees began sharing success stories with the system, encouraging broader adoption across the organization.
The Role of Data and Metrics
Susan also emphasized the role of data in driving the system’s success. As the system rolled out, FMC began tracking key metrics to monitor adoption and identify areas for improvement. Susan’s team created a user adoption dashboard that captured data points such as the number of contracts created, approval times, and usage trends across different regions. The data revealed which regions were embracing the system and which might need more training or engagement efforts, which allowed Susan and her team to make sure no team was left behind during implementation.
In addition to tracking adoption, Susan explained how these metrics are helping FMC refine their processes. For example, procurement teams at FMC have provided input on specific fields they want to track, leading to the development of dashboards that offer actionable insights. Susan explained that this data-driven approach has not only improved transparency but also fostered excitement among stakeholders who can now see the tangible benefits of the system.
What’s Next for FMC’s CLM Journey?
With phases one and two successfully completed, FMC is already planning its next steps. Phase three is expected to take the system to new heights by expanding its use to handle sales contracts and other complex agreements. Susan shared that the team is also exploring additional integrations, such as advanced analytics and AI capabilities, to unlock even greater value from the system by providing deeper insights into contract performance, risk management, and optimization opportunities. This will not only improve efficiency, but also give FMC the ability to make smarter, data-driven decisions at every stage of the contract lifecycle.
Susan’s advice for organizations embarking on a similar journey is clear: invest time upfront to understand your processes and requirements before selecting a system. She likened it to buying a car—there’s no sense in purchasing a high-performance vehicle if you don’t know how to use it effectively. This perspective highlights the importance of aligning technology with organizational goals and taking a strategic, phased approach to implementation for long-term success. And with that, we wrap up another episode of Contract Heroes, brought to you by Koho Consulting.