Using financial techniques to extract value from your contracts...
Far from being just papers that the legal department drafts and puts in a drawer until something goes wrong, contracts are a collection of very useful data which, when put into a consistent format and compared to other sets of data from across legal, finance and procurement, can help a company find the balance between risk management and commercial benefit. Any legal department which wants to be smart about delivering value to the company must treat contracts like an investment that can be optimized.
In a recent webinar, Exigent teamed up with Gartner-owned CEB to discuss how companies can apply financial acumen to their contracts and find opportunities not just for cost savings, but also for value creation.
Five steps to better business decisions
Legal teams can use a statistical approach to identify outliers in a company’s contracts and find a path towards improvement in many areas of the business, including property. For example, HUB International established that it was possible to reduce property-related costs by 10%, and improve asset utilization by 20%.
The starting point is having a secure, central contract repository. This enables companies to begin on the journey towards smarter business decisions:
- extract data to respond to specific strategic objectives
- make sure all data is formatted consistently
- analyze any outliers in contracts
- use visualization to identify areas of improvement and communicate across different departments and
- use your calculations and visualizations to:
- act on the business insight gained
- cut costs
- improve asset utilization
- optimize your contracts
Information within your contracts is meaningless if it’s not being efficiently utilized. View a recording of the webinar to learn how your team can turn contract management into asset optimization.