Archive: August, 2013
Brokers in the London insurance market still, largely, rely on a document called a “slip” or, more officially, a “Market Reform Contract” (MRC) to negotiate commercial insurance risks with underwriters. The process varies between the 197 Lloyd’s brokers, but generally, begins with the preparation of an MRC in MS Word. Little or no data is captured during the process, and any information needed to track the deal is rekeyed (often multiple times).
Five years ago, I was at a party for my wife’s sailing group. Bored, I started a conversation with someone I knew from volunteering in my small Massachusetts town.
The company I worked for, eFunds, had just been sold to FIS Global in Jacksonville, FL, and I was looking for a new challenge. Before eFunds, I had run various sales organizations, large and small, from Wall Street to IBM with many in between.
As the name implies, contract management is primarily about managing your contracts: knowing what they are and where they are; and making sure you don’t miss important performance milestones and renewal dates. These are all good things, but they don’t really make you a high performance contracting organization. To truly claim “high performance” status, you need to do more than just manage contracts.
You need to transform your contracting process, so that contracts are created more quickly and with optimal terms and conditions – a more intelligent process. And you need to take contract analysis to a deeper level, so that everyone negotiating, approving, and performing contracts has insight into the data needed to maximize contract value and minimize contract risk – more intelligence about your contract assets.