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How to Leverage Technology to Build Repeatable, Scalable, and Profitable Contract Processes
TRAVIS BICKHAMVP of Marketing, Concord
ALYCIA SIMPSONSr Manager, Concord
TIM CUMMINSPresident, IACCM
The Contract Success Platform
CCM failure has disastrous effects on shareholder value
March 2017 Carillion shares at ~235p
10/07 Carillion issued a trading update and referred to £845M impairment charge in construction services
17/11 Further profit warning –said it would breach banking covenants and full year debts at £925M
15/01 Carillion had just £29M of cash left
27/09 potential takeover by Middle East investors 03/01 FCA
announce an investigation into timeliness and content of announcements since Dec 2016
From $8bn to nothing!
Why did this happen?
Interim CEO Keith Cochrane’s view was that Carillion had:
• overly complexmanagement structures
• lack of regard forcontractual riskassessment
• overly optimisticcommercial assumptions
• too many projects whichturned out to beunprofitable
• not managed the contractsadequately
Contract & Commercial Operations: A Compelling Value PropositionVa
lue
Time 1 ! 3 Years
Contract Awarded
❑ Scope & Goals❑ Commercial Engagement❑ Risk-based Negotiation
4 - 7%
3 - 5%1
2
❑ Total Leakage > 9.2% pp
IACCM
❑ Pan-Organisation Capabilities" Best in Class Contracting" Contract Management" Performance Management" Relationship Management
❑ Commercial Capabilities"Market Expertise" Strategic Alignment" Internal Collaboration &
Engagement" Portfolio Management" Core Skills
• Innovation• Risk Management• Complexity Reduction• Opportunity Growth
Manage Contracts
Manage Performance & Relationship
GROW
3-8%
❑ Disputes & Disagreements❑ Contract Manager Skills & Coverage❑ Reactive Performance Management❑ Manual Process❑ Inconsistent & Inadequate Data❑ Management sponsorship & participation
Commercial Models & Innovation
Align & Manage Opportunity
Forward-looking organisations focus on “being easy to do business with” • removing friction at all points possible• having contracts that are as easy to
understand as the products and services areto consume
• deploying innovative ways to contract
• developing relationships across the parties
• contracting to build and support the brand
• having the insight and market intelligence toalign the commercial strategy and businessstrategy
• Pace of business increasing
• Contract processes remain unchangedTheProblem
The World Today
1. Fast
2. Digital
3. Volatile
What’s Changing
Technology Expectations Digitization
Two Paths Emerge
Path 1:Maintain the status quo and fall behind.
Path 2:Leverage technology to meet changing expectations and adjust and adapt.
Unrecognizable or forgotten. . .
Over the last fifty years, 88% of Fortune 500 companies have gone bankrupt or been acquired by another firm.
Legacy processes and tools won’t do
Old World: New World:• Manual processes • Legacy tools• Reactive and tactical
• Automated• Technology-enabled• Strategic
You need faster speed, greater scalability, and flawless compliance
CONTRACTS GROWTH
Technology Repeatable, scalable, and profitable.
Automate 1. Manual tasks and compliance
2. Self-service model
3. Contracts, a revenue center
Integrate 1. Single-source-of-truth
2. End-to-end compliance
3. Increase collaboration, empower teams
Scalable 1. Streamline processes
2. Simplify change management
3. Match growth demands
A Unified Platform Approach
1. Intuitive
2. All in one place
3. Open and multi-sided
Centralize and Simplify
Drafting Approval Negotiation Signature Execution
Trusted by 100,000 companies in 130 countries
A Case Study
The Use Case: Problem• Hard to keep up with expectations• Needed better visibility• Change the perception of Legal
A Case Study
The Use Case: Solution• Implemented technology to automate, integrate,
and build repeatable, scalable processes
A Case Study
The Use Case: Results• Secure signatures faster• Increased collaboration• Improved compliance• Automated lifecycle tasks
UncapYour Growth
844-693-7446
177 Post St, Suite 910, CA 94108 San Francisco
concordnow.com
The contract success platform