Contract Negotiations: How To Avoid Negotiation Peaks? Part 5
As we approach the end of Q3, this week a short message as the pressure is on to review, negotiate and close contracts before end of next week!
To make the end of the Quarter more manageable, lay the groundwork:
1. Early Preparaation and Prioritization
2. Communication & Cooperation
3. Standard Templates
4. Implementation of Legal Tech
However, at the end of the Quarter it will always be busier than normal.
๐๐ผ๐๐ฟ ๐๐ถ๐ฝ๐ ๐ณ๐ผ๐ฟ ๐๐ผ๐๐ฟ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ:
* Prioritize: Focus on high volume and strategic deals that are nearing closure and absolutely need to close this month.
Ask yourself: Is the very important contract you are working on now actually closing next week, or should you pause this deal for now and pick it up again in Q4 because it is actually a Q4 deal? Focus on Q3 deals only when busy.
Check: what are the Top priorities of the company & Sales department? Are you working on the right deals?
* Clear Communication:Keep open and transparent communication with your customers and internal teams. Confirm their (timing and process) needs, address any concerns and reiterate the urgency to reach a final agreement.
Streamline the contract process by collaborating closely with internal teams. Set daily meetings where necessary with clear goals for each day.
* Team Collaboration: The management, sales, legal, and procurement colleagues have to collaborate seamlessly to resolve any last-minute hurdles. Cross-functional teamwork is key to overcoming last obstacles or escalation matters
Avoid solo working on your very complicated deal, but collaborate with internal and external teams to ensure maximum efficiency and alignment to avoid delays.
* Deadline Management: Keep a close eye on deadlines, review the full list of contracts to be signed and requirements (contracts, documents, approvals, etc) and plan a few days ahead โ leave room for error. Missing a critical date, signature or document in the last week of the quarter can be costly.
Closing deals in the final week of Q3 is all about focus, prioritization, communication and teamwork. Let’s make this week count and finish the quarter with success!
Contract Negotiations: How To Avoid Negotiation Peaks? Part 3
๐ฉ๐ฒ๐ป๐ฑ๐ผ๐ฟ ๐๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐๐
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Picture the moment of buying new software, finalizing the lease on that dream workspace or formalizing your agreement with the new accountant via engagement letters. These are not just signatures or digital approvals of external contractual terms, they are important business decisions. Welcome to the world of vendor contracts!
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Building on our previous discussion how to negotiate your ๐ฐ๐ธ๐ฏ ๐ค๐ฐ๐ฏ๐ต๐ณ๐ข๐ค๐ต๐ด like customer contracts (Part 2), let’s focus now on contract of other parties.
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๐ฆ๐๐ฎ๐ฟ๐๐ถ๐ป๐ด ๐ฝ๐ผ๐ถ๐ป๐
One key principle we always advocate for: be cautious and hesitant to approve external template vendor contracts (referred to as Customer Paper) replacing your own template customer contract. Even though it is advised that large companies have their own template vendor contract for their vendors, only approve the use of such templates in exceptional and pre-approved cases. This will not only prevent delays, protect your business interests but also streamlines the negotiation process.
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๐ ๐ฎ๐ถ๐ป ๐ถ๐ป๐๐ผ๐น๐๐ฒ๐ฑ ๐๐ฒ๐ฎ๐บ๐
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๐ญ.ย ย ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐:
Roles:
ยทย Strategic direction
ยทย Alignment other teams. ยดIf the Sales Team wants to buy this software tool, let’s involve Procurement, Finance and IT to check the suitability of the toolยด.
ยทย Final decision
* Best practice:
– Keep overview of vendors to align with companyโs objectives.
– Work on communication between teams, especially for large vendor contracts.
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๐ฎ. ๐ฃ๐ฟ๐ผ๐ฐ๐๐ฟ๐ฒ๐บ๐ฒ๐ป๐: Acting as the bridge between your company and the external vendors, having the overview and responsibility for all vendor contracts.
Roles:
ยทย Budget & Pricing; Assess value and benefits of vendor contracts.
ยทย Relationship building and primary vendor point of contact
ยทย Negotiating contracts.
ยทย Contract compliance with company policies/procedures
* Best practice:
– Inform all teams early of anticipated engagements with vendors.
– Keep the management updated with vendor list
– Involve the legal team ๐ฒ๐ฎ๐ฟ๐น๐ (avoid end of quarter requests) to review contracts with clear timelines.
๐ฏ.ย ๐๐ฒ๐ด๐ฎ๐น.
Roles:
ยทย Review, advice and negotiate contracts
ยทย Streamline process
ยทย For large companies: create vendor templates
ยทย Create questionnaire for all vendors (create with Compliance / Data Security Team)
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* Best practice:
– Create a vendor questionnaire
– Stay proactive (not reactive) to avoid review of vendor contracts in peak periods
– Improve communication between legal, procurement and other teams to avoid delays and last minute reviews.
Prioritize vendor contracts for Quarter start periods. handling contracts based on $value and potential impact.