Comments on: Contract Practices Hit Cycle Times, Workload http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/ Managing Relationships in the Global Networked Economy Mon, 02 Nov 2009 21:48:49 +0000 http://wordpress.com/ hourly 1 By: Robert West http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/#comment-380 Robert West Thu, 29 May 2008 17:15:56 +0000 http://tcummins.wordpress.com/?p=44#comment-380 As a commercial contract manager, I agree that there is very little contract negotiating skill in most procurement departments, and many simple matters have to be referred to attorneys, because buyers are either not knowledgeable enough or not authorized to make decisions regarding important contractual issues. As a commercial contract manager, I agree that there is very little contract negotiating skill in most procurement departments, and many simple matters have to be referred to attorneys, because buyers are either not knowledgeable enough or not authorized to make decisions regarding important contractual issues.

]]> By: Mohamed S. FAITOURI http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/#comment-370 Mohamed S. FAITOURI Wed, 21 May 2008 15:06:36 +0000 http://tcummins.wordpress.com/?p=44#comment-370 I believe that one of the major management concern today in contracting business is time taken in completing contract document including review and incorporating all comments, how long it will take to have contract ready for execution? but with current review process by so many players involved in the contracting cycle within the corporate where it turn out that the idea of review is exploded out of proportion where it leads to increase the contacting cycle time. If each corporate entity review contract in terms of making its comments relevant to their business only and made by professional within reasonable time then we are home-free. I always believe that in centralization and some time you have to be a dictator when it comes to time as an important element in executing a contract then only then the review process can be eliminated once we have concrete, practical and acceptable general terms and conditions of contract as standard format. We as Contract engineers tend to hesitate to work with legal and finance peers because the Lawyer tells you “IT IS ILLEGAL” and the Accountant tells “NO BUDGET” then where we stand if you want to complete your mission. At any rate, I always consider having Balanced Contract but to achieve that then TIME is of the essence of the contract. Furthermore, time is mandatory tool to review contract by specific number of players where it is possible to manage it which revels as subject for research. I believe that one of the major management concern today in contracting business is time taken in completing contract document including review and incorporating all comments, how long it will take to have contract ready for execution? but with current review process by so many players involved in the contracting cycle within the corporate where it turn out that the idea of review is exploded out of proportion where it leads to increase the contacting cycle time.

If each corporate entity review contract in terms of making its comments relevant to their business only and made by professional within reasonable time then we are home-free.

I always believe that in centralization and some time you have to be a dictator when it comes to time as an important element in executing a contract then only then the review process can be eliminated once we have concrete, practical and acceptable general terms and conditions of contract as standard format.

We as Contract engineers tend to hesitate to work with legal and finance peers because the Lawyer tells you “IT IS ILLEGAL” and the Accountant tells “NO BUDGET” then where we stand if you want to complete your mission.

At any rate, I always consider having Balanced Contract but to achieve that then TIME is of the essence of the contract. Furthermore, time is mandatory tool to review contract by specific number of players where it is possible to manage it which revels as subject for research.

]]> By: Marketing Group http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/#comment-341 Marketing Group Thu, 08 May 2008 22:01:47 +0000 http://tcummins.wordpress.com/?p=44#comment-341 Our customers see an average of 30% reduction in overall contract lifecycle and once software like ours has been implemented, the organization gets excellent visibility into exactly what is causing cycle times to be longer than expected. In most cases, users find that the problem is not with legal but in fact in the collaboration process or even not having visibility into the process or having technology streamline the mundane activities that just simply eat away a person's time. Our best in class customers have realized over 80% in cycle time reduction. The interesting part about some of the deployments we have seen is that a contract management software deployment helpd bring the various groups in a company together - with visibility they better appreciate the common goal. Our customers see an average of 30% reduction in overall contract lifecycle and once software like ours has been implemented, the organization gets excellent visibility into exactly what is causing cycle times to be longer than expected. In most cases, users find that the problem is not with legal but in fact in the collaboration process or even not having visibility into the process or having technology streamline the mundane activities that just simply eat away a person’s time.

Our best in class customers have realized over 80% in cycle time reduction. The interesting part about some of the deployments we have seen is that a contract management software deployment helpd bring the various groups in a company together – with visibility they better appreciate the common goal.

]]> By: Mark Severns http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/#comment-334 Mark Severns Wed, 30 Apr 2008 18:20:25 +0000 http://tcummins.wordpress.com/?p=44#comment-334 The results of the research emphasize the importance of a collaborative effort between Legal and Procurement. The customers with whom I speak echo the importance of internal partnerships as a key to their success. Just recently I spoke with a company that had just begun their implementation of automated contract management for their Procurement team. Knowing that the ultimate goal was business-wide, they involved stakeholders from Sales, Legal, IT, Finance and Accounting to gain consensus early. We've seen companies reduce their contract cycle times significantly. Both automation and collaboration played a role in achieving success. Successful companies are able to gather all the stakeholders at the table and to have frank discussions around their contracts process and the implications that terms, conditions and deviations can have to the business. Their outputs become a company-wide standard that is highly adopted and drive their automated contracts process. Mark Severns Product Marketing Manager - Contract Management Emptoris The results of the research emphasize the importance of a collaborative effort between Legal and Procurement. The customers with whom I speak echo the importance of internal partnerships as a key to their success. Just recently I spoke with a company that had just begun their implementation of automated contract management for their Procurement team. Knowing that the ultimate goal was business-wide, they involved stakeholders from Sales, Legal, IT, Finance and Accounting to gain consensus early.

We’ve seen companies reduce their contract cycle times significantly. Both automation and collaboration played a role in achieving success. Successful companies are able to gather all the stakeholders at the table and to have frank discussions around their contracts process and the implications that terms, conditions and deviations can have to the business. Their outputs become a company-wide standard that is highly adopted and drive their automated contracts process.

Mark Severns
Product Marketing Manager – Contract Management
Emptoris

]]> By: Mark Darby http://tcummins.wordpress.com/2008/04/28/contract-practices-hit-cycle-times-workload/#comment-333 Mark Darby Tue, 29 Apr 2008 06:27:04 +0000 http://tcummins.wordpress.com/?p=44#comment-333 I guess this reinforces what many of us have known for sometime that the intent to create value often destroys it. What is also worth mentioning is that the delays do not only affect the 'lost savings' they can also impact delayed time to revenues and impact growth. My experience of how some organisations operate - all with good intention - shows that the internal treacle and checks/balances with inappropriate KPI's can have serious opportunity costs for the business and its portfolio of customers, suppliers and other partners. I guess this reinforces what many of us have known for sometime that the intent to create value often destroys it. What is also worth mentioning is that the delays do not only affect the ‘lost savings’ they can also impact delayed time to revenues and impact growth. My experience of how some organisations operate – all with good intention – shows that the internal treacle and checks/balances with inappropriate KPI’s can have serious opportunity costs for the business and its portfolio of customers, suppliers and other partners.

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