Comments for Contracts Intelligence Blog http://pramata.com/blog Mon, 17 Oct 2011 15:37:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Thoughts on Contracts Management Software Pt. I: System Capabilities – Is more always better? by David Munn http://pramata.com/blog/2011/08/01/thoughts-on-contracts-management-software/#comment-1256 David Munn Mon, 17 Oct 2011 15:37:57 +0000 http://pramata.com/blog/?p=182#comment-1256 Brian, That's a good point. I would hope that any company looking at contract management systems is also looking at their processes to see if there are opportunities to improve them. But I don't think the only problem involves automating bad processes. Even if you have great processes with your current technology (or lack thereof) it would be rare that putting a new technology in place wouldn't also provide an opportunity to reengineer your contract processes to improve speed, efficiency, consistency, etc. Maybe you can cut out entire steps and get high-priced resources out of the business of drafting, routing, and approving routine documents using document creation tools and rules-based approvals. That is likely to also require redesigning your contract templates to make them more efficient (maybe simpler?) and suitable for automation. Maybe it's just a matter of replacing email-based routing and approval with a more streamlined system that can track where things are in the process and give people reminders of pending tasks. Maybe you have people coming to lawyers asking for copies of contracts and answers to routine contracts questions and you want to provide them a self-service system. If someone goes into a project like this thinking they just want to automate their current processes they are probably not taking full advantage of what the technologies have to offer. Whatever you're doing today, it's likely that a contracts management system will allow you to improve on some aspects of your processes. And don't necessarily dismiss a system because it won't support your current processes or what you have in mind as the ideal process. The vendors have generally worked with a lot of companies and have a pretty good idea of what works and what doesn't work. You can learn a lot by listening to what they recommend. Obviously, they all have strengths and weaknesses, and their recommendations are going to play to their strengths, so you need to carefully evaluate what they have to say, but it's worthwhile to get the perspectives of a number of vendors because that may cause you to think differently about your situation and your processes. David Munn Brian,

That’s a good point. I would hope that any company looking at contract management systems is also looking at their processes to see if there are opportunities to improve them. But I don’t think the only problem involves automating bad processes. Even if you have great processes with your current technology (or lack thereof) it would be rare that putting a new technology in place wouldn’t also provide an opportunity to reengineer your contract processes to improve speed, efficiency, consistency, etc.

Maybe you can cut out entire steps and get high-priced resources out of the business of drafting, routing, and approving routine documents using document creation tools and rules-based approvals. That is likely to also require redesigning your contract templates to make them more efficient (maybe simpler?) and suitable for automation. Maybe it’s just a matter of replacing email-based routing and approval with a more streamlined system that can track where things are in the process and give people reminders of pending tasks. Maybe you have people coming to lawyers asking for copies of contracts and answers to routine contracts questions and you want to provide them a self-service system.

If someone goes into a project like this thinking they just want to automate their current processes they are probably not taking full advantage of what the technologies have to offer. Whatever you’re doing today, it’s likely that a contracts management system will allow you to improve on some aspects of your processes. And don’t necessarily dismiss a system because it won’t support your current processes or what you have in mind as the ideal process. The vendors have generally worked with a lot of companies and have a pretty good idea of what works and what doesn’t work. You can learn a lot by listening to what they recommend. Obviously, they all have strengths and weaknesses, and their recommendations are going to play to their strengths, so you need to carefully evaluate what they have to say, but it’s worthwhile to get the perspectives of a number of vendors because that may cause you to think differently about your situation and your processes.

David Munn

]]> Comment on Thoughts on Contracts Management Software Pt. I: System Capabilities – Is more always better? by Brian Smith http://pramata.com/blog/2011/08/01/thoughts-on-contracts-management-software/#comment-1200 Brian Smith Sat, 15 Oct 2011 17:18:16 +0000 http://pramata.com/blog/?p=182#comment-1200 David, One comment i would add is that a bad process that is automated is just a faster version of a bad process. So whatever tool you use, should make your (hopefully good) contract building and review process more effective for your company. David, One comment i would add is that a bad process that is automated is just a faster version of a bad process. So whatever tool you use, should make your (hopefully good) contract building and review process more effective for your company.

]]> Comment on The Foreclosure Crisis: Contracts (Un)Intelligence Grabs National Headlines by Christian http://pramata.com/blog/2010/10/11/the-foreclosure-crisis-contracts-unintelligence-grabs-national-headlines/#comment-10 Christian Wed, 17 Nov 2010 01:58:10 +0000 http://pramata.com/blog/?p=150#comment-10 Check out this contract 'tree' relating to who owns a mortgage... http://pramata.com/blog/2010/10/the-foreclosure-crisis-contracts-unintelligence-grabs-national-headlines/#more-150 Check out this contract ‘tree’ relating to who owns a mortgage…

http://pramata.com/blog/2010/10/the-foreclosure-crisis-contracts-unintelligence-grabs-national-headlines/#more-150

]]> Comment on Webinar Follow Up by Christian http://pramata.com/blog/2010/11/12/webinar-follow-up/#comment-12 Christian Tue, 16 Nov 2010 20:35:27 +0000 http://pramata.com/blog/?p=171#comment-12 Absolutely Bob. What we have found is that by starting with the data and normalizing it you can then drive highly robust processes around it. However, even in this scenario the normalization of the data is the key. For example, if you are tracking SLAs around customer contracts these will be written and negotiated in dozens or hundreds of different ways. By normalizing the data (dropping similar contracts into similar buckets) you can then build the appropriate layers of management processes to track, fulfill and react to SLA commitments. Likewise on the buy-side, if you want to develop, say, approval processes around vendor spend - the pricing data sitting in the underlying contracts will again be across the map. So if everything above, say $100,000k needs to be approved by the VP of Finance for the business unit you need to normalize the data such that when software is purchased under a contract where the charge is $1,000 per user per month, with a possible 50 users (but starting at 5) that this is then dropped into the bucket of >$100,000 and the appropriate individual signs off. In my experience, this normalization is the key to making contracting processes function optimally and is also a real trick given all the potential variations in the data and complexities in the process. Great point, thanks for the feedback. Absolutely Bob. What we have found is that by starting with the data and normalizing it you can then drive highly robust processes around it. However, even in this scenario the normalization of the data is the key. For example, if you are tracking SLAs around customer contracts these will be written and negotiated in dozens or hundreds of different ways. By normalizing the data (dropping similar contracts into similar buckets) you can then build the appropriate layers of management processes to track, fulfill and react to SLA commitments. Likewise on the buy-side, if you want to develop, say, approval processes around vendor spend – the pricing data sitting in the underlying contracts will again be across the map. So if everything above, say $100,000k needs to be approved by the VP of Finance for the business unit you need to normalize the data such that when software is purchased under a contract where the charge is $1,000 per user per month, with a possible 50 users (but starting at 5) that this is then dropped into the bucket of >$100,000 and the appropriate individual signs off. In my experience, this normalization is the key to making contracting processes function optimally and is also a real trick given all the potential variations in the data and complexities in the process. Great point, thanks for the feedback.

]]> Comment on Webinar Follow Up by Bob Henry http://pramata.com/blog/2010/11/12/webinar-follow-up/#comment-11 Bob Henry Sat, 13 Nov 2010 01:26:14 +0000 http://pramata.com/blog/?p=171#comment-11 Not to be overlooked is the value in tracking and reporting contractual obligations on both the buy and sell side. The data is not enough. A process must be in place to hand-off contractual obligations to the implementation owners, track and report, and pro-actively manage them. Not to be overlooked is the value in tracking and reporting contractual obligations on both the buy and sell side. The data is not enough. A process must be in place to hand-off contractual obligations to the implementation owners, track and report, and pro-actively manage them.

]]> Comment on Improving Contracts through Intelligence by Tim Cummins http://pramata.com/blog/2010/08/23/improving-contracts-through-intelligence/#comment-7 Tim Cummins Mon, 23 Aug 2010 14:54:34 +0000 http://pramata.com/blog/?p=118#comment-7 David, This is an excellent summary of some key points. As I know, we are agreed on the poin that having standards is not the end of the story - and many companies make themselves unattractive trading partners when they become rigid on thse matters. Indeed, as I am sure you noted when you read my blog, it goes on to make the point that a key role of standards is that "without standards, there is no platform from which to manage change. This is important, because many businesses presume that ‘standards = inflexibility’. But this is actually the opposite of the truth. Standards are in fact a pre-requisite of flexibility. Unless you know the base-line, change cannot be managed effectively or rapidly. You cannot empower the businesses to make decisions". David,
This is an excellent summary of some key points. As I know, we are agreed on the poin that having standards is not the end of the story – and many companies make themselves unattractive trading partners when they become rigid on thse matters. Indeed, as I am sure you noted when you read my blog, it goes on to make the point that a key role of standards is that “without standards, there is no platform from which to manage change. This is important, because many businesses presume that ‘standards = inflexibility’. But this is actually the opposite of the truth. Standards are in fact a pre-requisite of flexibility. Unless you know the base-line, change cannot be managed effectively or rapidly. You cannot empower the businesses to make decisions”.

]]> Comment on Of Metrics and Managers by | Contracts Intelligence Blog http://pramata.com/blog/2010/06/01/of-metrics-and-managers-pt-1/#comment-4 | Contracts Intelligence Blog Wed, 18 Aug 2010 11:47:57 +0000 http://pramatacorp.wordpress.com/?p=17#comment-4 [...] Management ParadoxDorothy Fischer on Why do you sell contacts and televisions?Brij Bhasin on Of Metrics and ManagersJustin Schweisberger on Of Metrics and Managers Twitter [...] [...] Management ParadoxDorothy Fischer on Why do you sell contacts and televisions?Brij Bhasin on Of Metrics and ManagersJustin Schweisberger on Of Metrics and Managers Twitter [...]

]]> Comment on The Contract Management Paradox by Tim Cummins http://pramata.com/blog/2010/07/22/the-contract-management-paradox/#comment-5 Tim Cummins Wed, 11 Aug 2010 21:56:21 +0000 http://pramatacorp.wordpress.com/?p=48#comment-5 The big problem is that management rarely understands the role of contracts. That purpose is not about risk allocation, but should be about defining a mutually beneficial trading relationship. But because it is positioned as risk allocation tool, it is driven by internal rules and policies. Contracts and procurement groups are seen as the custodians / enforcers of rules. That inevitably leads to conflict, because the buyers' rules are not the sellers' rules - especially in these days of standardized and iincompatible ERP systems and rigid risk / legal regimes. The big problem is that management rarely understands the role of contracts. That purpose is not about risk allocation, but should be about defining a mutually beneficial trading relationship. But because it is positioned as risk allocation tool, it is driven by internal rules and policies. Contracts and procurement groups are seen as the custodians / enforcers of rules. That inevitably leads to conflict, because the buyers’ rules are not the sellers’ rules – especially in these days of standardized and iincompatible ERP systems and rigid risk / legal regimes.

]]> Comment on Why do you sell contacts and televisions? by Dorothy Fischer http://pramata.com/blog/2010/07/30/why-do-you-sell-contacts-televisions/#comment-6 Dorothy Fischer Fri, 30 Jul 2010 22:59:00 +0000 http://pramatacorp.wordpress.com/?p=59#comment-6 It seems quite logical to me that Clara, living and starring in her own world, at the time, heard you say "contacts and television". You said new words, but she heard words that appear in her world! I think a lesson to be learned, before you start talking to clients, understand the world they are in, then speak their language. I believe everything Clara, Eden, and Davis say is astute and wonderful!! But then I am their Grandmother and understand their world. Pure, simple, fun and wonderful. Why, oh why, do we adults live there all the time with them??!! Cute picture, tell the "munchkins, Grandma loves them. It seems quite logical to me that Clara, living and starring in her own world, at the time, heard you say “contacts and television”. You said new words, but she heard words that appear in her world! I think a lesson to be learned, before you start talking to clients, understand the world they are in, then speak their language.
I believe everything Clara, Eden, and Davis say is astute and wonderful!! But then I am their Grandmother and understand their world. Pure, simple, fun and wonderful. Why, oh why, do we adults live there all the time with them??!!
Cute picture, tell the “munchkins, Grandma loves them.

]]> Comment on Of Metrics and Managers by Brij Bhasin http://pramata.com/blog/2010/06/01/of-metrics-and-managers-pt-1/#comment-3 Brij Bhasin Tue, 08 Jun 2010 14:04:16 +0000 http://pramatacorp.wordpress.com/?p=17#comment-3 Interesting points Praful, as you said I feel that we have made fantastic progress but at the same time a lot more can been done. In the last decade or so the idea of remote or cloud computing has really taken shape and has accelerated tremendously in the last 5 years. The idea that both consumers and business users will be willing and excited about using software remotely not just from a client-server perspective but also has a platform or service has radically changed how software is being created and consumed by the business world. The initial skepticism is now on it way out and most people are accepting and investing in this trend which would have been impossible were it not for the ubiquitousness of internet. While I see this trend continuing there is also a need to simplify the interaction between the "cloud data" and the "business user" where better decision making can be facilitated. This is where I see a lot of innovation happening over the next 5 years or so. Interesting points Praful, as you said I feel that we have made fantastic progress but at the same time a lot more can been done.
In the last decade or so the idea of remote or cloud computing has really taken shape and has accelerated tremendously in the last 5 years. The idea that both consumers and business users will be willing and excited about using software remotely not just from a client-server perspective but also has a platform or service has radically changed how software is being created and consumed by the business world. The initial skepticism is now on it way out and most people are accepting and investing in this trend which would have been impossible were it not for the ubiquitousness of internet.
While I see this trend continuing there is also a need to simplify the interaction between the “cloud data” and the “business user” where better decision making can be facilitated. This is where I see a lot of innovation happening over the next 5 years or so.

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