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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

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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

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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

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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

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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

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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

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Three Dimensions Contract Management

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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

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• 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

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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

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Corridor Company

How We Add Value for Our Clients

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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.

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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

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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.

1/24/2018

16

Corridor CompanyPartial Client List

BAE Systems