Win The Argument For Standard Contracts
IACCM President Tim Cummins recently blogged about this topic saying, “Standard templates improve business control, reduce risk and increase efficiency. They have been adopted by more than 70% of large companies.
Specific benefits include:
- Reduced operational costs (managing variations)
- Reduced cycle times for contract review and approval
- Scarce, highly skilled resources (such as Legal) able to focus on important issues and agreements
- Change management simplified (because you know what is in the base agreements)
- Business control increased (variations can be identified; new policies/procedures simplified)”
Creating and managing standard templates within an enterprise document assembly system provides the additional benefits of:
- Ensuring that all users have access to the templates and “best practices” are adhered to in all contracts/documents
- Storing the contract terms, providing visibility into and reporting on the company’s obligations
- Providing guidance on negotiated fall backs so users create contracts most favorable to the company
- Empowering business users to create pre-approved working first drafts.
Cummins went on to say, “The volatility of today’s economy has made it critical for the law department to know what is in their contracts. Executive management expect them to know whether particular actions can or cannot be taken. For example, during the recession, many companies unilaterally changed payment terms, or sought to exercise termination rights. Without standard templates, this became a time-consuming – and risky – task.
Law departments in many businesses are increasingly looking at ways to automate their contracts. They want reliable repositories; they want to be confident about the competitiveness of their terms; they want easy access to what has been negotiated; and they do not want to be seen as an inhibitor to getting business done.”
Document assembly is the way to accomplish these goals and win the argument for standard contracts.
Photo courtesy of NobMouse