the role of the contract manager in the legal department
DESCRIPTION
Jason Smith, Senior Director and Legal Counsel for Apttus, discussed challenges in contract management and how strategic decision-making can provide a competitive advantage during his presentation at the 2014 Chief Legal Officer Leadership Forum in Chicago on Sept. 17. In his presentation, Smith noted the contract manager plays a strategic role in organizations today. Smith pointed out how an organization deals with contracts can have far-flung effects. There are big differences between lawyers and non-lawyers, Smith added, and general counsels often are expected to do “more with less,” especially when it comes to contract management: “In the corporate world, legal [departments are] often nervous about empowering the non-lawyers to make decisions. But at the same time, the themes that we keep hearing through all of these discussions are that legal is just not equipped to handle every single aspect of the business. The standard line is ‘do more with less.’ So we don’t want to keep taking more information and more tasks related to the commercial management of contracts.” An organization that devotes the necessary time and resources to preparing a contract and resolving issues that may arise along the way can succeed, according to Smith. If an organization is focused on contract management, Smith noted, it can minimize conflicts as a contract moves up an organizational hierarchy: “I think there’s kind of a happy middle ground as you move up the stages of contract maturity where you can start implementing basic processes and start mandating certain things. Then you can kind of go across business units with the contract management, and it’s not until you’ve made some strides in the contract maturity model that you can really understand and define who should be doing contract and commercial management.” - See more at: http://www.argylejournal.com/general-counsel/2014-chief-legal-officer-leadership-forum-jason-smith-senior-director-legal-counsel-apttus/#sthash.UIydJOql.dpufTRANSCRIPT
Jason SmithSenior Director and Legal Counsel
APTTUS Corporation | 1400 Fashion Island Blvd. Suite 200 San Mateo, CA 94404 [email protected] | +1-650-539-2052
The Role of the Contract Manager in the Legal Department
2014 Chief Legal Officer Leadership ForumWednesday, September 17, 2014
Chicago, IL
Everyone’s Talking
® APTTUS 2014
® APTTUS 2014
“Practice” of Law
Give legal advice
Accept cases
Set fees
Appear in court
Plan strategy
Make legal decisions
Chart directions of a case
® APTTUS 2014
Draft Contracts
Point of contact for clients
Evaluate economic impact
Negotiate directly w/clients
Monitor competitive terms
Recommend redlines
Manage process compliance
Contract Manager Job Description
Give legal advice
Accept cases
Set fees
Appear in court
Plan strategy
Make legal decisions
Chart directions of a case
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“Sales Prevention Department”
Contracting Process
Sales
Legal
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Viewing the Contract
What will go right?
What could gowrong?
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Legal documents
Understand Regulatory
Environment
Manage Terms & Conditions
Drive Commercial Policy
Structure Deals
Negotiate Post-Award Policies
So Who Should Manage Contracts?
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Trade-offs
Risk Noncompliance
Efficiency Productivity
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Ad Hoc
Basic
Structured
Integrated
Optimized
Contract Management Maturity
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Contract Management: Strategic vs. Operational
Strategic
Operational
Defining the Role of the Contract Manager
• IACCM study reveals 60 variants of “Contract Manager” job title
• Common task: Ensure commitments are aligned with organization goals and policies
• Non-lawyer Contract Manager: Responsibility without Authority
• Lawyer as Contract Manager: Time well spent?
® APTTUS 2014
® APTTUS 2014
Achieving Synergism with Technology
SALES
LEGAL
FINANCE
DEAL DESK
CUSTOMER
Contract Playbook
1. Non-lawyers become self sufficient
2. Legal confident in compliance
3. Inquiries to Legal reduced
4. Risk management may increase elsewhere
5. Synergy between Commercial and Legal functions
® APTTUS 2014
Legal and Commercial Synergy
Jason SmithSenior Director and Legal [email protected]
linkedin.com/in/jasonsmithesq/
Member, State Bar of Texas Corporate Counsel Section
Editorial Board, ABA Law Practice Management Today Magazine
Past Chair, State Bar of Texas Computer & Technology Section
Named to HTexas Magazines’ 2014 Top Houston Lawyers (Technology)
Nominee, 2014 ILTA Thought Leader of the Year Award
Thank You!
APTTUS Corporation | 1400 Fashion Island Blvd. Suite 200 San Mateo, CA 94404 [email protected] | +1-650-539-2052