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IACCM Contract Management Forum

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Anonymous
2016-02-02 07:44:47

Benefits of early engagement by the Commercial/Contracts function in shaping the deal

Has anyone done any research on the benefits of early engagement of the function in working with the marketing and business development functions to shape the "art of the deal" and if yes what was the findings.
 
 •  World Commerce & Contracting  •   2016-02-07 01:26:25
You will find extensive material in our library on this point. And yes, absolutely it brings value, though to achieve early engagement requires you to talk value in terms that Marketing and BD will understand.

One of the major reasons for project failure is that it is supported by the wrong contract terms and relationship structure. So getting this right is of major importance (see IACCM report on the Top Ten Pitfalls). A consequence of late involvement is typically extended lead time in negotiation. In other words, if you approach the other party with inappropriate terms - or finish up being faced by their standard templates - your lead times and business risks increase.

The key point here is that you need to explain why your early participation will help Marketing and BD meet their goals. Don't approach this using words that imply control, risk avoidance or compliance - they will interpret that as meaning problems, bureaucracy and delay. You need to focus on how you can help them gain customer acceptance faster and reduce internal issues or resistance.
 
 
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