Ron Pol is a speaker at the NANZ Forum this week. He has been benchmarking in ANZ for a number of years. I will ask him for suggestions.
• Woodward, Inc.
Thank you both!
• Team Factors
Hi there, yes I've dome multi-year ANZ benchmarking on a wide range of legal management issues and lots of legal procurement (both sides). Our analysis found that those with seemingly the best rates (discounted rates/rates rebates/etc) actually paid more for legal services overall. So we no longer maintained rates data because it was such a poor indicator, and tried instead to focus procurement efforts on trying to generate better outcomes and/or better overall cost of legal services (usually settling in the middle somewhere, with demonstrably better outcomes and better cost of legal services). I've been asked to address some of this at the ANZ conference in Brisbane in a few weeks' time, and to try and illustrate some of the very real benefits from shifting from traditional inputs and outputs modelling towards an outcomes focus in complex and services procurement environments. Sorry this is not the dataset you asked for, but hopefully is at least an additional dimension that might be useful to consider. Regards, Ron Pol
• Woodward, Inc.
Thanks very much for your insight, Ron.
• KGHM International
Check out Chris' presentation at our last meeting in Toronto
The suppliers on your list offer quite varied solutions, so I wonder what your real requirements are? From my experience, Selectica and Novatus are probably the most 'sophisticated' in terms of functionality, which is good if you see your requirements expanding over time.
This is a very hot current topic amongst members around the world. I am looking forward to seeing what members have to say. I agree with the comment below about starting by having a clear understanding of the performance and outcome you are wanting. That will not always be obvious. A system that captures data that demonstrates the value delivered by the CM/Legal Functions might be a good discussion topic.
• DealSafe, Inc
Depending on your desired functionality, you may want to look at DealSafe.co - it's a newer solution, but is quite flexible and also comes with experts to extract key terms from your contract right into their databases. They are invite only right now, apply at DealSafe.co
• Merrill Corporation
Your choice of solution really depends on what you are looking for. Merrill DataSite offers a flexible and customisable solution - feel free to get in touch if you would like to learn more.
I would concur with the other comments about first understanding what your needs are before talking to any of the CLM providers in the marketplace. You will find that the 20 CLM providers (including my employer, Symfact Inc.) on the IACCM website are a pretty good representation of what's available in the marketplace. However, you need to be aware that each of these vendors-including Symfact-perform certain functions better than other functions. So it is important for you to do some screening based on your corporate and organizational needs. I have provided a list items below that you may want to consider as functional/operational requirements for your organization. This certainly may not be an all-encompassing list, they are just the ones that off the top of my head, but it certainly is good start for you to perhaps use.
You could consider sending out this list to the vendors that are in the IACCM Service Directory list and get them to provide you with a sentence or two on each item. Also ask them to list the top five items that they do best and then compare their top five items to the top five requirements (don't initially disclose this to the vendors) that you have/need. By taking this approach you will be better able to create a shortlist of vendors that are geared toward your needs. From there you can these shortlisted vendors have them provide a demonstration of their system so that you can see it in action performing the tasks that you need to effectively manage your contracting process.
List of requirements to consider:
- Contract authoring: do you use a library of clauses and templates as well as third party paper or do you simply want to attach a completed agreement onto a Contract Record? Also, look at what version of MS Word is used internally by contract authors.
- Version control: is it important to maintain the versions of the contract as you go through the internal collaboration and the external negotiation of the agreement?
- Workflow: do you have approval workflows that are based corporate policies and procedures or perhaps based specific business rules such as monetary value, contract type, location, etc.?
- Infrastructure: are you looking for hosted or an on-premise installation?
- Technology: do you have any corporate architectural standards (i.e. database or platforms) that need to be adhered to?
- Integrations: do you need to integrate to your CRM, ERP, AD, SSO, or other line of business system?
- Licensing: do you have a preference or need for an annual license (operational expense) versus a perpetual license (capital expense)?
- E-Signature: is this something you may need now or want to have available for the future?
- Data conversion: do you want to migrate you existing contracts (data and documents) to the new system?
- Request forms or wizards: is this something you need to start the contract process?
- Contract Types: what types of contracts do you want to manage: buy-side, sell-side, non-monetary, etc.? For data you wish to track, how much does it vary by Contract Type?
- Tracking: do you need to track financials (spend and/or revenue), commitments, performance or KPI's, etc.?
- System configurability: are you looking for an out of the box tool or one that can adapt to your needs over time?
- Users: Based on your various system users, how much control do you need over who can read and/or modify information across the system?
- Obligations: do you need to link specific text in the contract to an identifiable obligation that is actively managed during the life of the contract?
- Clause Tracking: is there a desire to track the degree of change that you standard clauses undergo?
- Related agreements: is there a need to see what amendments, SOW's, Task Orders, or other types of subcontracts are linked or related to an agreement?
- Searching: what are your searching and reporting needs? Do you need full-text searching?
- Repository only: are you looking for a simple repository that contracts can be loaded into?
- Remote access: do you need to access contract data via mobile devices? If so, what kind of data would need to be accessed?
- Multi-language/multi-currency: will the system be used in different parts of the world?
- Security: what type of user access and permission controls do you need?
- Governance: are there other governance or compliance items that are important to your organization?
Important point to consider is why you are in the market for an external solution. Is the focus primarily for the professional's benefit, are you trying to manage teams or processes, performance of data analysis, compliance, etc. As a user of Selectica, I find the data input a bit time consuming, burdensome, and of pretty limited value in the creation of terms that are often somewhat standardized for many services. From a management view, it is a rare organization that has the time to carefully analyze and assess data, so there may be value, but time is the limiting factor. Anyway, it depends on what you think you want to achieve.
• DealSafe, Inc
I'll throw it out there again, but DealSafe.co automatically uploads key terms for you. Let's you create very flexible reports, so you can manage the large number of demands you have from your deals.
• Sysintellects LLC
I trust you are doing fine.We would be happy,if you could share your email & we would be glad to demonstrate our solution.
• DealSafe, Inc
Hi Rashid, I would be interested. Best. John
jmfoxjr [at] gmail .com
• Schweitzer Engineering Laboratories, Inc.
Thank you for all the responses. Dan - very helpful in articulating and dialing in on some of our requirements.
Communications is a repeated source of success or failure in contract management (as with so many other pursuits!). Unfortunately, communications are treated as a step or action item. Successful contract management programs often cite their sustainable communication strategy, and not merely an occasional tactic, as the key driver of their success.
It would be interesting to see whether any members have examples of sustainable communication strategies that they can share across the IACCM membership base.
• Hewlett-Packard Company
I've noticed generally that younger, less mature organizations have a less enthusiastic view of the contract management function, whereas a large, mature organization usually has realized at some point that it is essential. To a certain extent, I think that we in legal or contract management roles are unreasonable if we expect that others will really "get" what we do. Normally they just want answers or results. But time and time again I've seen the greatest successes come in situations where the legal/contracts function sits down and works directly with the business leads as partners. Once the business leads feel supported, they will become evangelists, that is, provided that the support we give is creative, responsive, and timely.
• Zensar Technologies Ltd.
Contract Management needs to be driven as strategic initiative, with top down approach to see success. Integrating the activities of contract management with existing quality audit process and project execution norms may give the required boost or importance. Continuous improvement with revision in tools and checklists, creating extensions of contract management process within the stakeholders like sales and operations, by providing enough ammunition through trainings and continuous dialogue to resolve issues. Management attention and involvement in the process can be increased by helping in provisioning of visual metrics depicting risk analysis, risk profiling without consuming the precious hours.
Can you describe what goods/services are being procured? If I am reading your comment correctly, you are looking to draft KPIs for contract managers - i.e. the metrics that will be applicable for the client-customer facing contract manager?
• Hyland Software, Inc.
Our contracting solution automatically sets due dates for any contract being processed. We measure our success rates on meeting the deadlines. We have setup KPIs that align to our corporate/department goals as well. For example: reducing turn around time on responding to redlines, reducing by 10% from 2013.
This is an important and frequent question. IACCM is currently updating its data on the most commonly used KPIs as part of it's periodic benchmarking surveys. I suggest you may want to participate and gain access to the data these surveys provide. See www.surveymonkey.com/s/PerformanceMeasurement2014
The goods and services are IT (HW and SW) products, support and development services. And yes to the question of KPIs for measurement of the performance of contract/commercial managers in the client-customer facing role.
To being with, I would suggest listing down the top priorities of your organization, pertinent to the contract being managed. For instance, KPIs based on time to procure, SOW/Work Order preparation/review, vendor selection, indicate that the organizations priorities are cycle time to contract. Several organizations have KPIs for contract managers based on cost saving YoY, percentage of managed spend over total spend, percentage of claims settled against vendors or clients (as a service provider. Our organization also has KPIs such as # of days a change control document (eg. Change Order, Amendment) is open, percentage of contracts uploaded in CLMS within x days after execution.
These are some general guidelines, trust this helps.
There is not a lot of activity in BOOT contracts these days, as they are somewhat bespoke and complex. But, do not let that deter your in your research. There are a lot of parallels between BOOT contracts and Public-Private Partnership (PPP) agreements. Perhaps review some of the research and articles on PPP's.
When it comes to BOOT contracts, you might find value in the following comments from Santender Sharma - one of our leading members in the Oil and Gas Community of Interest.
BOOT (build, own, operate, transfer) is a generally a partnership project model between the Government Agency / Operator (hereafter referred as Company) & Private Company (generally a large EPC contractor. Hereafter referred as Contractor), in which a Contractor undertakes a large Project under contract to a Company. A BOOT project is often seen as a way to develop a large public project with private funding.
Under BOOT model, the Company contracts with a Contractor with specific expertise - to design and implement a large project. Company may provide limited funding or some other benefit (such as tax exempt status, custom duty waiver, etc) but the Contractor assumes the risks associated with planning, constructing, operating and maintaining the project for a specified time period. During that time, the Company charges its customers to realize a profit. At the end of the specified period, the Contractor transfers ownership to the Company, either freely or for an amount stipulated in the original contract. Such contracts are typically long-term and may extend to 20 or more years.
Some advantages of BOOT projects are to encourage private investment, bring in new foreign capital to the country, completing project within time frame and planned budget without much risk to Company.
Check out the benchmarking Call based on the Report that IACCM did:
• Hewlett-Packard Company
I highly recommend doing an internal study of time spent. Obviously the answer to your question depends on the nature and scope of the contracts your team is handling. Also, the use and sophistication of tools in the group can greatly affect the efficiency of the team.
Yes I agree, please share with me, I would like to see the legislation and I have recently observed the change in contractor's attitude in negotiation from UK.
• Ministry of Justice
The most recent change is the implementation of the European Directives into UK Law, through the issue of the 2015 Public Contracts Regulations. This dictates Government procurement rather than standard commercial arrangements. Section 83 indicates a minimum contract record retention of the contract duration where they are over a certain value: As most contracts have an extended liability life of at least 6 years and as we have a wider obligation to maintain public records, then policy in my government Department is to err on the side of caution and retain for 6-7 years. The legislation is found HERE www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en.pdf
Is the intention of the calendar simple to identify critical dates (expiry, escalation, review) ? We find these functions are provided in eCRM (Salesforce)... the automated notification and tailored reports would likely satisfy the objective of a 'contract calendar'
Yes, but alas we do not have an eCRM at this time, hence my request.
• Robi Axiata Limited
You can develop a basic contract management database with the below fields and create monthly contract calendar (contract going to be expired on next 3 months) and take decision based on that. May create a link with Procurement calendar.
Previous Ref. No.
Procurement Coordinator (Buyer)
Technical Coordinator (User/ Owner)
Department/ Division of Contract Owner
Agreement Description/ Title
Supplier Contact Details
Effective/ Start Date
Expiry/ End Date
Contract Execution/ Signing Date
• Vector LImited
In addition to Farhad's list, you may add a comments section where you can take note of risks or important contractual obligations that contract owners/managers should be aware of. For example, there is a contract wherein the existing vendor is given the right to submit a proposal 3 or 6 months prior to expiry date before the company requiring the services engages with a new round of RFPs/RFIs to new suppliers. Other contracts may stipulate that both parties should confirm renewal at least 30 or 60 days prior to expiry date. There are also contracts which are non-negotiable and simply renew automatically on expiry date. These are critical information that need to be taken into account in order not to be taken by surprise at the last minute. Hope this gives you more insight.
It does, and thank you.
• Hewlett-Packard Company
If you do this in Excel, for example, you may find that this becomes an administrative burden. Be prepared to argue for funds to obtain a proper tool.
• Steria Limited
A contract calendar's aim is to track key events and obligations, so you can ensure Contractual adherance. This can be done by usinga simple MS Excel spreadsheet. While you can track events in one tab, the obligations can be tracked in another tab. Weightage for risks of non-compliance can be alloted to each event and obligation and that would tell us the complete risk you carry if you do not adhere to the contract. It's a systematic way of ensuring Contract performance.