How To Avoid Peaks in Negotiation Cycles by Improving Team Collaboration

1. Introduction

Working towards an optimized negotiation process is not only a legal matter but requires effective collaboration between various teams. In my experience, the teams highlighted below have the most important role in negotiation cycles.

The general rule to involve all teams in your contract template creation and contract negotiations will always apply. As Legal is in the middle of these processes, we have written this series from the point of view of the Legal department.

Let’s dig deeper into the roles of the different teams involved in negotiating your own contracts.

2. 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁

Next to a focus on the strategic vision of the company, the management will encourage teams to sign as many customer contracts as possible. It will especially crucial for the management to have a seamless process with minimal involvement from management, except where agreed.

Main roles

In contract negotiation, the roles of the company’s management will be:

• ·      Strategic Vision
• ·      Risk Management
• ·      Stakeholder Alignment
• ·      Escalations / final decisions

Best practice: Establish a robust structure that defines Management’s role and involvement in decision-making processes. Explore and discuss refinement of contract processes and agree on key priorities.

3. Commercial Team

With this we mean for example Sales & Account Managers, Business Development Managers, Partnership Teams. As a sprinter nearing the finish line, the Commercial Team will race to close deals at the end of each quarter. Smoother processes will mean better results so Commercial Teams are usually more than willing to work towards improvements.

Main Roles:

In contract negotiation, the roles of the company’s commercial team will be:

• ·      Overall Overview and Responsibility for customer contracts
• ·      Relationship building / primary point of contact
• ·      Getting the deal done
• ·      Stakeholder Alignment

Early involvement and cooperation with other teams is imperative for Sales to avoid bottlenecks & peaks. In the cooperation with Legal, focus on (i) Setting Priorities, (ii) Contract Template Training and (iii) when & how to involve Legal.

4. 𝗟𝗲𝗴𝗮𝗹

In contract negotiations, the legal team navigates all legal advice and negotiations from a strategic point of view, with a goal to improve processes and reduce risks for the company.

Main roles:

In contract negotiation, the roles of the company’s legal team will be:

• ·      Contract Advice, Negotiation and Drafting
• ·      Risk Management of the company
• ·      Creation of contract templates / playbooks and contract process improvement

Best practice: Legal shines in drafting, advising and negotiation of contracts. Do not create gridlocks by making them the point person for each negotiation. Strategize with Sales when Legal should step in, which should mainly be for large or strategic customer contracts.

Conclusion

By carefully dividing roles and collaborating closely between teams, we are able to work on improving contract & negotiation processes. This also includes working better together to avoid end-of-quarter spikes before the holidays.

In our other articles about this topic, see 1, 2, 3 and 4 we dive deeper on the ways to improve the communication and collaboration between these teams.