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1/24/2018
1
Everything You Need to Know
Positively Disrupting The Status Quo Of Contracting
Smarts Spirit Discipline
Presenters
Dermot WhittakerRuss Edelman
Thought LeadershipSeries
Contract Management Automation
Today’s Agenda
• Alarming Figures That Warrant Action
• Three Dimensions of Contract Management
• Deep Dives into Each Dimension
• Corridor Snapshot
1/24/2018
2
IntroductionsDermot & Russ
SnapshotPresident of Corridor CompanyIndustry Analyst & Pontificator
Based In: Boston
21 YearsLiving Contracts & Enterprise
Content Management
Writer for Huffington Post, CNBC, InformationWeek, CIO, KM World, etc.
SnapshotMarket Research & Data AnalystSolutions Oriented Contracts Pro.
Based In: Boston
5 YearsResearch and Analysis of Contract
Management Market Place
Key member of Corridor’s marketing and research team covering the contract
management market place
Alarming Figures That Warrant Action
“…How can we do the right things at the right time if we do not know the contents of our contracts?”
Peter MocklerManaging Partner
BearingPoint
1/24/2018
3
Alarming Figures That Warrant Action
“… From a legal perspective, Contract Management in companies is a must. It does not only ease contract negotiations, contract creation, dispute resolution and audit preparation and defense, but it should also be a significantpart of the company’s risk management”
Axel ViaenePresident
Association of Corporate Counsel Europe
1/24/2018
4
IACCMA Few Words
International Association for Contract & Commercial Management
Research, benchmarks, and best practices for commercial contracting and professional
development
www.iaccm.com
IACCM Data PointCorridor Adjusted
Recent Member Survey indicated that 9.2% of gross revenue is lost due to poor
contracting processes.
Example
Gross Revenue 500 Million USD
Annual Loss: 46 Million USD
Daily Loss: 176,000 USD
We believe … however, we are also a bit more conservative.
So we elected to use 1%.
Example
Gross Revenue 500 Million USD
Annual Loss: 5 Million USD
Daily Loss: 19,200 USD
1/24/2018
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Alarming FiguresThat Warrant Action
APICS survey shows 3 out of 5 organizations spend from 30% to as much as 80% of their revenues on goods and services through third parties
Alarming Figures That Warrant Action
30% +of annual revenues
BearingPoint survey: 77% of the participants did not know the processing time spent working on standard contracts
77%of contract
professionals
1/24/2018
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Alarming Headlines That Warrant Action
Maryland Judiciary fails to monitor contracts, audit finds
Mississippi River group shuts down after auditors criticize contracts
Loophole allows $600,000 contract to balloon to $10 million
Pentagon’s failure to monitor truck contract caused costs to double
DHS’ internal assessment of its $1.5B agile contract: ‘significant errors and missteps’
Contract ManagementMaturity Model
Dimension 1Create
Request
Dimension 2Repository
Approve/Collab
Dimension 3Reporting &Compliance
Requests aread-hoc with
no management
Paper and no centralized repository
No or limited manual reporting
Manual request processes with no templates
Shared drive(s) spreadsheets & little/no process
Spreadsheets are manually prepared
E-Forms used for requests and
template library
Centralized repository with
metadata & workflow
Standard reports (owner,
expiration, etc.)
Automated contract/doc
creation
Clause library, E-Sign support,
mobile support
Ad-hoc search & report definitions
Highly granular content used for contract creation
Custom workflow multi-location,
advanced E-sign
Obligation extract and actionable
reporting
Different maturity levels within an organization are not unusual
1/24/2018
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Contract Management DimensionsA Common Definition | 1,500 People Later
Dimension 1Creation & Requests
Dimension 2Repository &Collaboration
Dimension 3Reporting & Compliance
Simple and Advanced Contract Requests
Automated Contract & Document Generation
Non-AutomatedTemplate Usage
3rd Party ContractsFrom Counterparty
Central Repository For Draft & Executed Contracts
Contract Data (Metadata) For Searching & More
Seamlessly Review, Approve& Negotiate Contracts
Full Support For Hard Copy Signing & E-Signature
Level 1 – Basic Contract Data Reporting
Level 2 – AdvancedContract Data Reporting
Level 3 – LoB Analytics Reporting
Contract Retention& Compliance
Contract Management DimensionsA Common Definition | 250 People Later
Artificial Intelligence (AI)Machine Learning (ML)
Integration With Line of Business LoB)
Content Migration
1/24/2018
9
• Determining when to use document automation vs. fill-in templates
• Ensuring adequate protection when using external paper
Dimension 1Contract Creation & Request Summary
Challenges
Risks
o Inconsistent & malformed language introduces unnecessary exposure
o Document automation effort is underestimated
Best Practices
✓ Segment & quantify contracts to determine optimal creation/request
✓ Pursue most valued contracts first
Real World ExampleDimension 1 | Contract Creation & Request
Business ObjectiveProvide a uniform approach around the globe for multiple contract types which support multiple languages and LoB integration.
Challenges• Global participants agreeing on needs• Business Release management required a
commitment to multi-stage roll-out• Integration with LoB systems is complex
1/24/2018
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• Each organization wants to store files in a slightly different capacity
• Metadata balance is art/science• Collaboration is highly interpreted
Dimension 2Repository & Collaboration Summary
Challenges
Riskso Poor organization=poor findabilityo Overly complex workflow & negotiations
drive “under-nets”
Best Practices
✓ Plan Information Architecture broadly and execute in small steps … Business Releases
✓ Simplify collaboration/workflow
Real World ExampleDimension 2 | Repository & Collaboration
Business ObjectiveProvide a centralized contract repository for all vendor, provider and member contracts through a staged implementation. Introduce a flexible and powerful approval process with electronic signature.
Challenges• HIPAA security mandated refinements
around external communications• User interfaces were substantially
simplified to heighten user interaction
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• Reporting is unclear and diversified by users and business units
• Reporting often requires data from multiple systems
Dimension 3Reporting, Compliance & Obligation Management
Challenges
Riskso Inaccurate or non-reporting introduces
substantial exposureo Designing for exceptions – not rules
Best Practices
✓ Approach in a “Vital Signs” capacity✓ Deliver the right reports to the right people
at the right time
Real World ExampleDimension 3 | Reporting, Compliance & Obligation
Business ObjectiveIntroduce a global contracting platform for all three divisions of the company. “Cross-contract” & “in-contract” reporting with LoB systems and contract specific data was key.
Challenges• Gaining consensus from stakeholders on
key reports and priorities• Designing the right data model/warehouse
to support financial reporting
1/24/2018
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Corridor Company@ 50,000 Feet
Technology For Business
Corridor’s Contract Centric Vision Is Exclusively Focused On High Usability, Administrative Ease & Scale
450+ Projects & Best Practices
Armed With Award Winning Methodology, Relevant Client Stories & Attention To Detail That Delivers Success
Global Clients That Demand Scale
Demands Placed On Us For Global Clients Drive Innovation For All Of Our Clients
Industry Vision & Real World
We Push Ourselves To Think Into The Future So We Can Assist Our Clients In Successfully Charting Their Courses
Thought Leadership References
• How to Stop Making Costly IT Contract Mistakes [link]• How to Build a Business Case For SharePoint [link]• Determine The True Cost of Microsoft SharePoint [link]
• Burton Snowboards [link]• Social Networking In Business [link]• Is Microsoft Cool [draft]
• Avoiding Technical Success & Business Failure [link]• What Enterprise Social Networks Lack: Purpose [link]• Is SharePoint Trustworthy For Business-Critical
Processes? [link]
• “Pepe Le Pews" of Social Networking [link]• The Plight of the Corporate Martyr [link]• Why Should I Care About the Nice Guys When the SOB’s
Have Screwed Up the Economy? [link]
• Office 365 For Contract Management [link]• Practicalities of establishing a Contract Management
Center of Excellence [link]• The Impact Of Emerging Technology On Contract
Management [link]
Since Corridor’s inception, we have continually given back to the industry in terms of trend analysis and thought leadership. These are a few of many representative examples.
1/24/2018
14
Corridor CompanyPartial Client List
BAE Systems
Product OfferingsContract Products | Primary Corridor Licensed Products
Contract Extenders | Optional Add-on Software
Contract Accelerators | Configuration Driven New Functions
CM[.app]
Salesforce.com Integration
SAP/Oracle/DynamicsIntegration
Auto Categorize and OCR
CredentialingAutomation
CorporateRegistration
Contract Incidents
ContractRebates
Contracts365
ContractMilestones
1/24/2018
15
Corridor Company@ 50,000 Feet
Technology for Business
Best Practices Learned through 450+ Projects
Global Clients That Demand Scale
Industry Vision Blended with the Real Word
Corridor’s contract centric vision is exclusively focused on high usability,
administrative ease & scale
Demands placed on us for global clients drive innovation
for all of our clients
Armed with award-winning methodology, relevant client stories & attention to
detail that delivers success
We push ourselves to think into the future so we can assist our clients in successfully
charting their courses
Thought Leadership References
• How to Stop Making Costly IT Contract Mistakes [link]• How to Build a Business Case For SharePoint [link]• Determine The True Cost of Microsoft SharePoint [link]
• Burton Snowboards [link]• Social Networking In Business [link]• Is Microsoft Cool [draft]
• Avoiding Technical Success & Business Failure [link]• What Enterprise Social Networks Lack: Purpose [link]• Is SharePoint Trustworthy For Business-Critical
Processes? [link]
• “Pepe Le Pews" of Social Networking [link]• The Plight of the Corporate Martyr [link]• Why Should I Care About the Nice Guys When the SOB’s
Have Screwed Up the Economy? [link]
• Office 365 For Contract Management [link]• Practicalities of establishing a Contract Management
Center of Excellence [link]• The Impact Of Emerging Technology On Contract
Management [link]
Since Corridor’s inception, we have continually given back to the industry in terms of trend analysis and thought leadership. These are a few of many representative examples.