How to Roll-Out your New Contract Template: 10 point Checklist
This is part 4 of my tips how to Roll-Out your New Contract Template as an Expert.
๐ช๐ต๐ฎ๐ ๐๐ฒ ๐ต๐ฎ๐๐ฒ ๐น๐ฒ๐ฎ๐ฟ๐ป๐ฒ๐ฑ ๐ณ๐ฟ๐ผ๐บ ๐ฝ๐ฟ๐ฒ๐๐ถ๐ผ๐๐ ๐ฝ๐ผ๐๐๐ ๐ถ๐ป ๐๐ต๐ถ๐ ๐๐ฒ๐ฟ๐ถ๐ฒ๐:
* The top-down approach does not work
* Focus on the Why, How, When and Benefits
* Make a Communication Plan
* Identify Relevant Users and Teams
* Notify / Pre-inform the team about the upcoming new template
๐ก๐ฒ๐ ๐ ๐๐ถ๐ฝ: ๐๐ผ๐บ๐บ๐๐ป๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป ๐๐ต๐ฒ๐ฐ๐ธ๐น๐ถ๐๐
See below a non-exhaustive checklist of the items that I would recommend to include in your message When rolling out & communicating the new Contract Template.
-๐ฆ๐๐ฏ๐ท๐ฒ๐ฐ๐ ๐๐ถ๐ป๐ฒ: Use a clear subject line that communicates the purpose of the email, such as โNew Contract Template โ [Add name relevant document] โ Please Review and Adopt.โ
-๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป (๐ช๐ต๐): Start with a brief introduction that outlines the importance of adopting the new contract template.
-๐๐ฒ๐ป๐ฒ๐ณ๐ถ๐๐: Provide an overview of the key features and benefits of the new contract template, highlighting how it will help streamline processes, reduce risks, and improve efficiency.
-๐๐ผ๐: Add instructions on how to use the new contract template, including where to find it, how to fill it out, and any specific requirements to be aware of.
-๐ง๐ถ๐บ๐ฒ๐น๐ถ๐ป๐ฒ: Clearly communicate the timeline for adoption of the new contract template.
-๐ง๐ฟ๐ฎ๐ถ๐ป๐ถ๐ป๐ด ๐ฎ๐ป๐ฑ ๐๐๐ฝ๐ฝ๐ผ๐ฟ๐: Include information on any training or support that will be available to help team members adopt and use the new contract template effectively.
-๐ฃ๐ผ๐ถ๐ป๐ ๐ผ๐ณ ๐๐ผ๐ป๐๐ฎ๐ฐ๐: Provide a point of contact for questions or concerns regarding the new contract template (e.g. a project manager or legal representative).
-๐๐ฐ๐๐ถ๐ผ๐ป: End the message with a clear call to action, such as โPlease review and adopt the new contract template by 2025, and let us know if you have any questions or concerns.โ
-๐ข๐ฝ๐๐ถ๐ผ๐ป๐ฎ๐น โ ๐๐ฒ๐ด๐ฎ๐น: highlight any legal requirements, regulations or policies that must be adhered to, in order to ensure compliance and mitigate legal risks.
-๐ข๐ฝ๐๐ถ๐ผ๐ป๐ฎ๐น โ ๐ง๐ฒ๐ฎ๐บ ๐ฆ๐ฝ๐ฒ๐ฐ๐ถ๐ณ๐ถ๐ฐ๐: mention important specific information or operational set-up details for certain teams.
Tip 8: Consistent terms & definitions in your documents
Make sure that you use the same terms and definitions in your contracts and other important documents. It is also advised to follow the same rule for commercial documents like pitches / offers and even your website.
Why is this Important?
There are many reasons why consistent use of terms in your organization and definitions in your documents. To name a few:
- 1. Consistent use of most used terms in your organization improve efficiency as you will not have to think & have meetings which term or what definition to use.
- 2. It helps everyone understand what is meant exactly by a certain term that you use in your company.
- 2. To create the best possible customer experience.
- 3. To avoid any misunderstanding on what service or product the customer has purchased from you exactly, and under which conditions.
- 4. In case of commercial discussions (and even litigation) about a term in the contract for whatever reason: e.g. exact services purchased (and under which conditions), the price for the service, termination possibilities, volume commitments, compliance and system requirements, etc.
Examples
For a typical SaaS/Software company this means that the same terms/definitions should be used for the following documents (depending on the contractual set-up):
- General Terms and Conditions
- Product Specific terms
- End User License Agreement
- Customer Contract / Master Ordering Agreement
- Order Form / SOW (Statement of Work)
- Annexes likes the Data Processing Addendum (DPA), Data Security Addendum and the Pricing Annex
- Disclaimer on the website
About AMST Legal
At AMST Legal, we provide advice how to improve your (legal) processes and contract templates. Helping you to make sense of all your standard contracts and templates and improving them is part of that. Contact us at lowa@amstlegal.com or book a meeting here for help with your legal (compliance) framework.
Tip 7 โ All Contract Standards & Templates in One Place
Create a Central Repository
Remember to store all your (contract) templates in one central place to make sure that everyone is (i) able to find the correct templates quickly and (ii) using the correct template.
Sounds very straight forward, but in reality I rarely see companies that store all templates in one central place easily accessible for all involved team members.
Storing all contract templates in one central place is challenging for most companies, but especially in case of:
- fast-growing companies
- mergers/acquisitions
- activities in multiple countries
- large groups with many subsidiaries or a complicated corporate structure
- contracts in different languages
- involvement of different departments (Account Management, Sales, Partnerships, Sales Operations, โฆ)
What is the Best Way to Make Templates Easily Accessible?
Best options are:
- (a) fully/partly automate your contract creation and be strict that this is the only way that contracts can be generated. This way the relevant, most up to date and correct Contract Template is used and all templates are stored in one spot as you should only be able to use this automated system; and
- (b) create a central place (usually an internal website or โ less ideal โ a shared folder).
Crucial Step
Give training โ at the start of employment and regularly thereafter โ to your employees to make sure they know where the contract templates are located and how to correctly use these templates.
About AMST Legal
At AMST Legal, we provide advice how to improve your (legal) processes and contract templates. Helping you to make sense of all your standard contracts and templates and where to store them for easy access to the team is part of that. Contact us at lowa@amstlegal.com or book a meeting here for help with your legal (compliance) framework.
Tip 6: When making your specific contract, start with the correct template
Introduction
Previously in the series โHow to improve contract templatesโ, we emphasized knowing the content of your contract templates. See the full article here: https://amstlegal.com/tip-5-review-the-contents-of-your-templates/. Now weโre zooming in on perhaps the most common issue with contract templates: How the templates are used daily. Because even with all the technology available to automate contract creation, most contracts are still created in word processing software such as MS Word. The templates are often saved in unstructured ways too. Additionally, the people that use the template contracts on a daily basis for a specific customer contract do not always use the correct template, i.e. the latest version, when making a new contract. While simultaneously doing that without using contract automation, unexpected risks can show up later on. Keep reading to learn what risks you could be facing, and how you can manage them.
When making a specific contract, start with the correct template
Why is it so important to start with the correct template?
Naturally, it sounds very convenient to use a contract of another client or the contract template that you have been using for years when making a new contract. However, this is the biggest risk associated with contract creation for companies that do not use contract automation. More time and money will need to be spent on the (re)negotiation of the contract and/or potential mistakes or claims in the future because your contract did not fit with the client or the specific situation. Using the correct template can be a step on the way to minimize encounters with these risks.
How do you minimize this risk?
So how do you avoid the risks connected to not using the correct template? There are many options to minimize those risks. However, we have found from experience that the two best ways to minimize these risks are:
- Fully/partly automate your contract creation and be strict that this is the only way that contracts can be generated; and
- Create a central place (usually an internal website) to store the contract templates, and give your employees regular training.
Unfortunately, the first tip can take some time to set up and requires recources for it to fully work. The pros outweigh that though, so donโt fear the power of technology when making contracts. For the second tip to fully work, we advise to provide training to the employees regularly. For example at the start of the employment followed by regular consistent training after that. This is our standpoint because you want your employees to know where the templates are located and how to use them.
Another tip that could be conjoined with the other two is to make sure that the importance of this is discussed regularly in your team or during company meetings.
Conclusion
To sum up this article, it can make a major difference on the aftermath of your contracts whether the correct template is used or not. Therefore we do advice to invest in good templates and good training for the employees. Doing this will make your contracting process much easier. If you feel like this is something that you would benefit from, contact us at AMST Legal for further personalized advice.
About AMST Legal
At AMST Legal, we provide advice how to improve your (legal) processes and contract templates. Helping you to make sense of all your standard contracts and templates and where to start drafting or using these standards is part of that. Contact us at lowa@amstlegal.com or book a meeting here for help with your legal (compliance) framework.
