This report confirms that a majority of top companies are actively investing in contract and commercial capability. In today's challenging global markets, they see this as an increasingly important source of competitiveness.
Facing high levels of uncertainty and volatility, organizations must have the flexibility to grasp opportunity wherever and whenever it arises. This demands a highly adaptive and coordinated commercial capability, which many are struggling to achieve. A particular challenge is how to strike a balance between the need for fast-moving creativity, while responding to the many demands for improved governance, compliance and risk management. These conflicts are nowhere more evident than in the area of contracts, which are critical to closing new business as well as a key source for managing risk.
IACCM interviewed executives from 50 of the world's largest corporations. The interviews confirm that top management at the most successful organizations understands the importance of the contracting process and are investing in it. While approaches and progress vary, many are taking steps to drive greater efficiency, whether through automation, empowerment or offshore / outsourced resources. Also, a trend to integrate contract / commercial management with Legal appears designed to raise the efficiency of both. At the same time, many are demanding increased effectiveness through improved analytics, commercial intelligence and measured value-add.
This 'call to action' is not about hiring more people; it is about the need for organizations to review the status of their contract and commercial service delivery and whether the necessary streamlining is occurring. Are you doing what it takes to ensure competitive capability?