We recently attended a very interesting IACCM Conference in Rome, part of which was dedicated to the concept of Agile and Collaborative Contract management.
In today’s fast changing world, driven by technology and ever increasing demands from customers, organisations need to develop a more Agile and Collaborative approach to managing contracts. Agile is designed to enable contract and commercial managers to work in a collaborative manner with all stakeholders and in particular the legal team, who are often only focused on the liabilities and indemnities aspects of contract management, rather than the relational approach.
The various contributors talked about the need for all (including the CEO) to fully understand the Agile and Collaborative contracting concepts. They highlighted the need to build the trust that underpins collaborative and agile contract management approach. We discussed the need to create simple, flexible and robust agreements, consistent with agile and collaborative relationships
It is interesting to note that much of the discussion was focused on the problem of overcoming prescriptive and adversarial contracts, however in reality issues that arise between client and contractor rarely ever get to court and are usually negotiated. We also highlight the need to move from traditional transactional to new age relationship driven contract management.
It is becoming clear that we, in contracting, need to develop processes that are designed to enable shared risk and reward between the client and the contractor if the Agile approach is to become an everyday reality, rather than a pipe dream.