5 top royalty management mistakes

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5 Top Royalty Management Mistakes

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Post on 19-Jan-2017

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5 Top Royalty Management Mistakes

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Ignoring the costs of poor royalty management

Implementing a royalty management system requires an upfront investment.

Too often, companies fail to weigh the cost of a new system against the dangers of overpaying or underpaying royalties, or the risks of litigation over royalty disputes.

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Solution:

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Assessment of the litigation and reputational risks of existing royalty management practices.1 2 Clear cost-benefit

analysis of poor royalty management.

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Lack of management buy-in

Adopting a new royalty management system is about human capital as much as software. Without

proper support, poor implementation will create additional costs and delays, and damage employee

confidence in the new system.

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Solution:

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Buy-in at the executive level and visible support for implementing a new system. 1 2 A team dedicated to

resolving issues with the new system as they arise.

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Dependence on custom software

Custom software has critical disadvantages:

Maintenance costs more and requires greater IT support

More external support required

for updates

Custom software is harder to adapt if

needs change

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Solution:

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A royalty management system with a configurable, modular structure that offers built-in flexibility. 1

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Too much ownership on IT

When too many high-level functions of the royalty management system require the intervention of IT

to implement, the result is bottlenecks, frustrations, and delays.

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Solution:

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Put high-level control into the hands of business users1

2 Have a simple, intuitive interface that make customization easy

The system should:

3 Give business users the ability to modify fields, calculations, definitions, and drop down lists

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Lack of phased implementation

Software implementation is never a once-and-done job. Imposing a new system on all employees,

without time to get early adopters excited, take feedback, or iron out early issues, guarantees

trouble.

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Solution:

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Phased implementation, with time for reflection, training, feedback, and internal marketing, instills confidence in both the software and the process, and makes employees feel included in the project.

1 2Early training should focus on employees who are likely to become internal advocates for the new system.

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fadel.com