COVID-19 is still a major threat, but organizations and their legal teams have started to shift their strategies. But how?
In our new guide, Moving Beyond Crisis Mode: Long-Term COVID-19 Strategies for Legal Departments, we cover the major actions that legal teams need to take to come out of the COVID-19 pandemic stronger than they came in. One critical element is analyzing your contract processes. Without consistent, well-understood and thoroughly documented processes, your business can easily get off-track, especially during critical situations. Establish crisis teams by identifying and plugging in key individuals across departments. In addition to thinking through crisis preparation, mitigation and recovery, these teams should incorporate process mapping into their analyses. Start with these four steps.
- Start by conducting an analysis of your current processes and mapping their typical journeys. Flag any points in the process that involve redundancies, bottlenecks, or other inefficiencies, then identify the proper individuals to standardize and adjust accordingly.
- Standardizing contract processes does not mean standardizing contracts, as process mapping requires a deep understanding of the variations between each of your contracts. Payment terms, for example, are regarded as fixed statements of time; under difficult economic circumstances, a shift from 30 to 90 days has a dramatic impact on cash flow or payment obligations.
- As you analyze your contract processes, keep in mind that “normal” no longer applies. The nature of subcontracting or outsourcing may look dramatically different in the future. Expect contracts to include specific clauses that enable parties to continue delivering through adjusted delivery times or provide more freedom to subcontract.
- Finally, think about long-term business continuity throughout process mapping. Test your contracts against current conditions, and those that may present in months to come. Before moving on to the next step of the repositioning stage, legal teams and GCs must be able to answer this question of any of their contracts: What will this contractual relationship look like at the end of the year?
To learn more long-term COVID-19 strategies for your legal department, access the full article for free here.