Contract Benchmark Data
Spring seems to be the season of surveys and we’re being alerted to several. Since many of these contracts surveys have a direct correlation to contract creation (document assembly) and contract management, we’ll be sharing interesting findings. Where appropriate, we’ll also provide links to the surveys.
We recently received some interesting contract benchmark data from Tim Cummins and the IACCM. And, since as Tim points out, “in the areas of contract management and negotiation, it is extremely hard to obtain relevant information,” we wanted to share that data with you. The IACCM findings include:
- Only 11% of organizations are consistently successful in imposing their standard terms and conditions
- Sell-side legal and contracts groups are increasingly struggling to get their standard terms accepted by business customers (some spend a lot of time fighting, while others have recognized smarter ways to manage risks and variations and are changing their negotiation strategies)
- The role of Legal in the contracting process has increased on average by almost 40% in the last 5 years
- The average cycle time to negotiate a medium-complexity contract is 7 – 10 weeks (Companies that shorten cycle times gain the benefits of increased speed to cash and less exposure to competitive challenges or changes in market conditions / requirements)
- Productivity of contracts professionals, measured by the average number of contracts handled, varies by more than 100% between high-performing and low-performing organizations
This data is drawn from IACCM’s recent series of contracting benchmark studies and is being made available at no charge to participants in the survey.
Tim adds, “Today, leading organizations (as revealed by the benchmark study) have grasped that the contracting process can drive the quality and efficiency of many internal commercial practices. Academics share this view, with a growing number highlighting the competitive advantage to be gained through superior contract and commitments processes.”
Exari clients know this first hand. They have succeeded in shortening their sales cycles, built their standard terms and conditions along with acceptable negotiated fall back positions into their contract templates, streamlined their negotiations and reduced their revenue leakage by automating their contracts process. You can learn more by visiting www.exari.com.
You can participate (and receive full results) in IACCM’s Performance Measurement survey here.