The Point “It’s nice to meet the newest member of our ‘department of business prevention’.” The head of marketing greeted me with these words when I joined a Fortune 500 company as an associate general counsel. That was in 1986. I don’t think much has changed. This Matters to Your…
The Point Why approach the contracting function as a form of business process management? Two reasons. First, efficient contracting drives — and ad hoc contracting impedes — cash flow. By making the order-to-cash cycle fast or slow. Second, efficient contracting enables quick action — and ad hoc contracting creates roadblocks…
The Point Some contracts are more important than others. Figuring out what’s “good enough” depends on the deal’s potential consequences — both good and bad. Some are considered “bet-the-company”. They call for a degree of quality, investment of time, and costs (especially lawyers’ fees) commensurate with their potential benefit and…
The Point As both lawyer and executive I’ve seen multiple variations of this scenario: A friend heading an industry lending group at a money center bank calls me. Agitated. He and his counterpart at the potential client company have agreed on all business points for a large loan. But one…
The Point 1. A good business strategy: Accelerate revenue by making the order-to-cash cycle as short as prudently possible. 2. Tactically: (1) Have lawyers draft pre-approved risk protection terms for sales contract templates before any discussions with customer, (2) Agree in advance on the terms of all other standard risk…
The Point Attorneys view contracts primarily through the lens of risk management. And only in a very specific context: Protecting the business in case of litigation. There is, of course, some merit to this focus. But only a tiny percentage of contracts actually end up in court. The contracting process…