Archive: April, 2008
We’ve written before about the “one size fits all” approach to contracting, and the problems it can create. Now IACCM President Tim Cummins has blogged about the same problem, with some interesting new research data.
In short, a hard line approach to standard form, take-it-or-leave it contracts seems to be back-firing on the Legal teams that seek to impose it, at least on the procurement department. Why, because suppliers don’t like it, they push back and negotiate, and Legal ends up getting dragged into the process more than they would like.
Instead of using flexible tools like automated document assembly to empower procurement and accelerate cycle times, the IACCM research shows that:
- Contract cycle times have been increasing
- Legal is seen as a “road block” by 40% of procurement teams.
Further evidence that standard form inflexibility really doesn’t work for business contracts. Contract automation is a much better solution.a
If you ever wanted to learn about risk — what it is, where it may be hiding, how to manage it, and how to pass it on to someone else — then RIMS is the place for you (and thousands of other insurance and risk professionals). The Risk and Insurance Management Society is having its annual gabfest, and it’s on right now at the San Diego Convention Center.
Sessions include everything hot in the insurance world right now, from California Wildfires (no pun intended), to Contractual Risk Management: A Potential Hot Potato (ditto). This latter session makes a good point about what a wonderful and dangerous tool your corporate contracts can be for shifting risk around. Stick the right clause in here and, hey presto, a big scary risk lands in someone else’s lap. Stick the wrong clause in there, and an even bigger risk lands in yours. It’s easy to see why more and more people are interested in tighter contract standards and processes.
If you want to create tighter contracts without huge legal bills, then drop by the Exari booth (3114) at RIMS. We’ll be more than happy to show you the latest web based tools for creating great contracts, with a whole lot less risk.
For RIMS conference info, visit www.rims.org