Understand Your Contracts and How to Manage Them
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How well do you understand your contracts?

Contracts are the backbone of your business. They provide revenue certainty on the sell-side and supply chain certainty on the buy-side. Your contracts touch virtually every business relationship and shape your exposure to risk. But how well do you understand them?

If you’re like most companies, your contracts are scattered across hard drives, filing cabinets, and outdated document management systems. How will you be defending against ugly surprises that an auditor, regulator, or the CEO raises? If you’re like most companies, this is only made worse by a clunky contracting process that is costing you deals during the end-of-year crunch. 

Contract Management presents unique challenges to all enterprises – some small, some catastrophic.  You need to understand which contractual problems are doing the most damage in terms of lost revenue, inflated costs, or unmanaged risk – and how to efficiently and effectively eliminate those problems.

Want to learn what makes up a successful Contract Lifecycle Management solution?
What you don’t know can hurt you…badly.
What You Dont Know Blue

If you don’t have fingertip access to contract data - data you can trust - how can you really understand, measure and mitigate the risks buried in the fine print of your portfolio? How confident are you that none of your contracts has a ticking time-bomb of uncapped liability waiting to go off? Are there any unexpected chain-of-title gaps in your core intellectual property? Have any buy-side OEM contracts expired, putting an entire product line at risk? While many businesses have poor visibility into contract terms - no business can afford this risk. 

Legal bottlenecks…where deals go to die.
Legal Bottlebecks Blue

When legal is tasked to review every contract - and the quarterly sales crunch is on - some deals don’t make the cut, and revenue suffers. Unless legal finds a way to work faster or smarter, or the business is empowered with self-service contracts, legal will develop a serious problem becoming known as the place where deals go to die. This is an image most hard-working legal teams neither want, nor deserve.

The many and varied risks of rogue contracting.
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When contracts don’t flow through legal - and controls are weak - your deal speed may increase, but so will your risk. Particularly with junior and newly-hired members of the sales team, it’s impossible to catch every risky clause, and to include all the wording that shields you from potential liability. Without controls, you might get locked into to a five million-dollar project for a fixed fee of one-million dollars. Or, you might give away a big chunk of exclusivity with no termination rights. With so many people negotiating, each in their own way, it becomes virtually impossible to understand your overall exposure.

The tragedy of revenue leakage.
Revenue Leakage Blue

Poor tracking of price, payment, and renewals is the easiest way to squander the favorable terms you fought so hard to win during negotiations. This is the tragedy of revenue leakage. You worked like crazy to win the deal, only to miss the renewal. You negotiated annual price adjustments, but nobody told the finance team. Across a large portfolio of contracts, these seemingly small lapses of contract management can create large revenue holes.

Contracts, compliance and headline risk.
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In a world where trust and reputation play a big role in corporate value, can any business afford any lapses in contract or regulatory compliance? At a minimum, failure to comply with your contractual obligations will disappoint your customers and expose you to claims of breach. In many industries, failure to include appropriate clauses can lead to regulatory sanctions and penalties. And in the court of public opinion, a reputation of poor compliance can seriously damage your brand. A comprehensive understanding of your obligations can head off many potentially devastating issues.