A Wake-Up Call for Businesses: 80% Lack Contract Accountability
In a recent global report, the Commerce & Contract Management Institute (CCM Institute) has revealed a startling reality: up to 80% of organizations are operating without clear accountability for their contracting performance. This leaves businesses vulnerable to inefficiencies and risks during a period of persistent uncertainty. However, the report also highlights a silver lining: organizations that have embraced technological advancements in their contracting processes are better equipped to navigate these uncertain times.
The report, titled "Benchmark Report 2025: The Race Is On - Navigating Uncertainty Through CCM Resilience," was produced in collaboration with World Commerce & Contracting (WorldCC), NCMA, and Sirion. It analyzed data from thousands of organizations across various industries and regions, assessing the maturity, capability, and resilience of contract and commercial management (CCM) functions.
Here's where it gets controversial: despite the high levels of uncertainty (with 87% of organizations reporting sustained uncertainty), only a small fraction have established governance frameworks to define responsibility for contracting outcomes. This lack of accountability is hindering progress, even as investments in digital tools and automation continue to rise.
"This report serves as a mandate for immediate action," stated Sally Guyer, CEO of WorldCC. "Commercial and contracting excellence have been treated as complex, secondary priorities, creating a structural weakness. The data is clear: businesses that recognize CCM as the catalyst for resilience will thrive in this 'new normal.' Leaders must address accountability and leadership issues without further delay."
The report also sheds light on the changing role of AI in contracting. There's a notable decline in skepticism towards AI, with over 80% of respondents expecting AI to play a major role within the next two years. AI is no longer limited to contract repositories; it's increasingly being used for contract creation, drafting, summary generation, and review. Obligation extraction is another area where AI is making significant strides.
But here's the part most people miss: there's a growing divide between buy-side and sell-side organizations. Suppliers are outperforming buyers by more than 20% across all performance metrics. This gap can be attributed to differences in leadership alignment, organizational design, and investment in full contract lifecycle technologies. While sell-side units have clear commercial governance structures, buy-side teams often lack cohesion, operating under procurement or finance functions that prioritize cost control over performance visibility.
The report challenges the notion that technology adoption alone can bridge the capability gap. Sell-side organizations demonstrate a 37% technology advantage, with an average of 8.41 digital capabilities per person compared to 6.52 on the buy-side. However, the data shows that digital systems are ineffective without defined accountability and leadership oversight.
"Our research reveals a fundamental governance failure," said Tim Cummins, Executive Director of the CCM Institute. "When 70-80% of businesses lack a single point of clarity for contracting performance, it creates a system of inertia and risk. Automation cannot solve a governance crisis. The race for resilience will be won by those who establish clear accountability, build adaptive leadership, and invest in human talent for an AI-transformed future."
The report identifies leadership, structure, and talent development as the key drivers of commercial resilience. Respondents facing high uncertainty ranked leadership quality, unclear roles, and organizational confusion as their biggest barriers to progress.
"Enterprises now recognize that commercial and contract management excellence drives performance. The question is: how do we translate this recognition into meaningful change?" asked Ajay Agrawal, Founder and CEO of Sirion. "At Sirion, we witness this evolution daily, where intelligence becomes an integral part of the system, guiding every decision and agreement with data, context, and intent."
The Benchmark Report 2025 concludes that while awareness of contracting's strategic importance is high, structural change remains limited. The findings urge organizations to clarify ownership, strengthen leadership accountability, and align technology investments with measurable governance outcomes, similar to the principles outlined in the Contract Management Standard (CMS). Adopting the globally recognized CMS provides a framework to establish unified practices and close the accountability gap.
About the CCM Institute
The CCM Institute aims to raise standards in buying and selling, improving global policy and practice through rigorous, practical research. As a not-for-profit organization supported by World Commerce & Contracting and NCMA, the Institute drives up standards for the exchange of goods and services, enhancing trading outcomes in both the private and public sectors.
About World Commerce & Contracting (WorldCC)
World Commerce & Contracting (WorldCC) is a global non-profit association dedicated to enhancing trading relationships and commercial effectiveness. With over 80,000 members worldwide, WorldCC provides research, standards, training, and resources to help organizations achieve better commercial and contracting outcomes.
About Sirion
Sirion is the world's leading AI-native CLM platform, revolutionizing enterprise contracting with agentic AI. By combining an intuitive conversational experience with specialized AI agents, Sirion has redefined enterprise contracting. Trusted by the world's most valuable brands, Sirion manages 7M+ contracts worth nearly $800B and relationships with 1M+ suppliers and customers in over 100 languages.
About NCMA
The National Contract Management Association (NCMA) is the world's leading professional association for contract management professionals. It provides certification, education, and research to elevate contracting standards and practices across industries and governments globally.
Contact Information
Kate Hodgins
Commerce & Contract Management Institute
Email: info@ccm.institute
Website: https://ccm.institute/
