Contract and Commercial Management

See what our analysis revealed about the evolving role of technology, people, and process in contract management.

Technology

Technology investment is on the rise 7 out of 10 respondents say automation and digitization are a growing priority.

Data is top of mind Attention is shifting to post-award The pandemic revealed key challenges Companies are making investments in with data and data ﬂows. improving the management of contracts after signature. “We must stop thinking about are focused on improving contract management and think 39% post-award processes about contract data management.” 67.1% Head of digitization, global engineering company are working to introduce 65.1% 34% more robust approaches to obligation management

What can help teams monitor and realize are increasing the role of contractual performance? Linking contract 25% commercial professionals in data to data in: post-award risk management 33.3%

are taking steps to automate and increase data exchange 20% 54.8% with trading partners Finance ERP CRM systems 60.3%

Technology adoption success factors A series of coordinated actions, including:

Better deﬁnition of an Increased clarity over integrated process organizational roles and responsibilities

Simpliﬁcation and Integration of the standardization of contracts human intelligence factor

People

Will technology replace people? Not replace, but change their roles.

Growing adoption of technology is creating new and more fulﬁlling roles.

In organizations where buy- and sell-side In these roles, humans will combine: resources are integrated: their judgment

45% and new skills of teams are increasing headcount and only with technology

8% to deliver greater value. are reducing headcount We call it the power of With.

“ I need people with the curiosity to understand how markets and the business work; the courage to speak up and challenge; the collaborative skills to engage with others and solve problems.” General counsel and leader of integrated commercial team

Process

Eﬃciency is a growing priority And it’s been accelerated by the pandemic.

Organizational Process

Is your organization reevaluating the way you are organized, or the headcount that is applied for some or all of your contracts and commercial 77% management activities? of the organizations undertaking reevaluation identiﬁed streamlining Buy-side contracts Sell-side contracts of processes as a priority.

YES YES Structural 64% 51% Buy-side 93% of those making changes are shifting to a center-led or matrixed model for contract and commercial management. NO NO

Sell-side Only 55% are making this 36% 49% shift—but a higher proportion are already operating with a more consolidated approach.

Measuring the investment value of contract What are the obstacles? and commercial management is challenging

Only 40% of survey respondents currently Outdated systems provide some measure of ﬁnancial value or impact on the business. Fragmented data Buy- and sell-side contracts

40.3% Measures such as negotiated 26.4% savings are largely discredited

33.3% Risk avoidance is hard to prove Yes Not currently, but exploring No

The bottom line

Transforming the contracting function requires proper investment not just in technology, but also in people, process, and content.

By streamlining the contracting process and the removal of bottlenecks, companies can improve speed to execution and free up in-house attorneys’ time to work on more strategic issues.

Equipping legal and commercial teams with data insights can foster innovation and create new value.

The ultimate goal: Contracting becomes a critical operational tool and the framework for collaboration.

https://www2.deloitte.com/us/en/pages/tax/articles/contract-and-commercial-management-survey.html?nc=1 Visit our page to download the full report and learn more about Deloitte’s Legal Business Services.

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