Step 5. Set up and Run the Renewal Process

While steps 1-4 set the foundation to create, maintain and evaluate contracts data in LeanIX SMP, in this step, we describe a high-level approach how you can run your first renewal process and set this up as a regular process. To decide whether to renew or terminate a contract, you can follow the phases and criteria provided in this article.

Before you start you should be aware that SMP offers you the possibility to track those standard aspects of a contract in a manual fashion, simply by adding a custom field for each of these steps. Custom fields will allow you to manually modify predefined status for these questions.

let's take here a simple question extracted from the renewal process described below "Do we have the Budget?"

• To add this aspects on your contract, go to your contract list, open the site panel clicking on "Columns".
• Select the tab "Custom" and click on "create".
• Now put the question under the "Custom field name"
• As custom field type select "Single select" if you want to constrain user to select one status. Otherwise you can opt for a "Multiple select". Select "Free text" if you prefer user to leave a note on the column.

• Once you click on "Create" the custom field will look like this (here for 3 different Contracts):

And here, each user will have to click on "Edit" to update the field.

Renewal process

Here we offer you a renew workflow based on LeanIX and industry best practices. These steps can be adapted to your organization's needs and processes.Once that you are a bit more familiar with custom fields, you can then implement out

Phase 1 - Assess Service

1. Criticality: Do we need it?
   possible status (single select) => Administrative Service/Business Operational/Business Critical/Mission Critical
2. Budget: Do we have the budget?
   possible status (single select) => Budget requested/Budget in review/Budget approved/Budget rejected
3. Compliance: Is it compliant with our requirements?
   possible status (multiple select) => ISO27001/PCI/SOC2/GDPR

If you decide to renew the contract, proceed to Phase 2 and conduct a thorough analysis of service consumption. If your decision is to terminate the contract, there is no need for further analysis of that service.

Phase 2 - Define Order

1. Review adoption: How many people have access to the service?

   select a custom field type "free text" and let you user update the fields manually

2. Review utilization: How many people are using the service?

   select a custom field type "free text" and let you user update the fields manually

3. Review departmental allocation: License allocation

   select a custom field type "free text" and let you user update the fields manually

4. Review spending to discover hidden costs or extra fees that should be addressed in the next contract

   select a custom field type "free text" and let you user update the fields manually

5. Define the next contract volume and license based on previous consumption & growth projection

   select a custom field type "free text" and let you user update the fields manually

6. Negotiation status

   possible status (single select) => not started/in progress/quote received/order sent

7. Upload new contract

   possible status (checkbox)

At the end of Phase 2, you will have a new contract signed and uploaded to SMP.

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Information

To simplify the process, we recommend creating Custom fields or columns, for example for Criticality, Compliance, and Utilization. This provides an easy overview and aids in assessment and defining order.

LeanIX SMP provides a comprehensive solution for managing SaaS contracts, allowing you to streamline your procurement processes, gain valuable insights, and make informed decisions with its user-friendly interface, customizable fields, and robust analysis capabilities.

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Work in progress & further information

Please note that this article describes the process on a high-level and that our Customer Success Management Team will guide your with best practices, if your organization decides to use LeanIX SMP for contract management. You might also check out our upcoming https://roadmap.leanix.net/tabs/10-on-roadmapproduct releases to SMP for upcoming features that will provide additional value for your contract management process.

Step-by-step guide