Contract managers, lawyers, and compliance officers often struggle to explain the value of contract management to executives and managers, because they focus on the wrong issues at the wrong times. The argument is simple: “We are understaffed and there are too many contracts to keep up with.” This argument never persuades senior management to invest in contract management.
A new year brings a fresh opportunity to get control of your contracts, finally. Contracts are often “filed and forgotten.” Sales or revenue generating contracts expire unexpectedly, while expense contracts automatically renew without notice.
You want to get control of contracts to help your colleagues, to grow your organization, and to protect the company. Where do you start when you are staring at so many contracts stored in so many places?
Here are practical steps toward better contract management.
While many lawyers and organizations prefer to avoid evergreen contracts, evergreen clauses survive in a variety of leases, service agreements, and purchasing contracts. Evergreen contracts create significant long-term risk and opportunity. Careful contract management is necessary to control for contract risk and preserve the upside.
We have analyzed 30 years of data about the types of business legal entities formed throughout the United States. Vibrant charts illustrate the trends and dig deep into the data.
An entertaining look at the search trends for goverance, risk management, and compliance. Read what 10 years of search history reveals about preferences for GRC.
Legal risk is one of the most difficult kinds of risk for organizations to measure and manage. This article explains how to define and classify legal risk so that organizations can develop an effective risk management strategy.
The Economist's March 21st, 2015 article, "Attack of the bean-counters. Lawyers beware: the accountants are coming after your business" identifies a second wave of legal hiring by accounting firms globally. The Economist takes the position that global accounting firms are building internal legal services capacity closely related to their core non-audit lines business. PwC, for example, is now the tenth largest legal services firm by headcount.
To pull information out of contract management software improves the work of the contract management team, including business lawyers, contract managers, corporate parlegals, and compliance officers. To push insight from contract management software, however, adds value to the entire organization.
"How did this happen?" is the first question every general counsel or compliance officer has to answer once an organization is sued or receives a regulatory sanction of some kind. The answer is that the organization does not manage legal risks systematically as it does other risks. Legal risk remains one of the most challenging and least understood risks to manage.