The Importance of Lean Six Sigma in the Legal Department
What Is Lean Six Sigma?
An Example Of How Marc Used Lean Six Sigma to Reduce the Contract Cycle Time
An Example Of How Marc Used Lean Six Sigma to Reduce the Contract Cycle Time
Lean Six Sigma is the combination of two process improvement methodologies. Lean Six Sigma teaches that focusing on the average time to close a contract provides no insight on the true delays in your contracting process. With his clients and the three legal departments Marc Pappalardo has built when he was in-house, the focus is on reduci
Lean Six Sigma is the combination of two process improvement methodologies. Lean Six Sigma teaches that focusing on the average time to close a contract provides no insight on the true delays in your contracting process. With his clients and the three legal departments Marc Pappalardo has built when he was in-house, the focus is on reducing the true “defects” that cause delay in the contracting cycle. The ultimate goal is to eliminate as much as possible the legal department's involvement in the contracting process. This means that some clients negotiating fewer contractual clauses, and for other clients, it means getting their customers to sign a contract as-is.
An Example Of How Marc Used Lean Six Sigma to Reduce the Contract Cycle Time
An Example Of How Marc Used Lean Six Sigma to Reduce the Contract Cycle Time
An Example Of How Marc Used Lean Six Sigma to Reduce the Contract Cycle Time
Marc Pappalardo has developed an innovative way to track various phases of the contract cycle from creation to signature in a way that will help identify the causes of delays. For example, Marc had a client that was taking almost to 60 days to close a contract. After gathering data using a Lean Six Sigma approach, he was able to determine
Marc Pappalardo has developed an innovative way to track various phases of the contract cycle from creation to signature in a way that will help identify the causes of delays. For example, Marc had a client that was taking almost to 60 days to close a contract. After gathering data using a Lean Six Sigma approach, he was able to determine that contracts were sitting with a customer for weeks before receiving the initial revisions. After Marc was able to identify the issue, he was able to quickly help the client reduce its average contract close time to under 30 days.
An Example of How Marc used Lean Sigma to Reduce the Percentage of Contracts Closing at the end of the quarter.
An Example of How Marc used Lean Sigma to Reduce the Percentage of Contracts Closing at the end of the quarter.
An Example of How Marc used Lean Sigma to Reduce the Percentage of Contracts Closing at the end of the quarter.
Does A Large Percentage Of Your Contracts Come In During The Last Two Weeks Of The Quarter? Does your company even track that data? A client consistently that had a large percentage of its customer contracts close in the last two weeks of each quarter, which the CRO initially thought was “normal” because it was being driven by the custome
Does A Large Percentage Of Your Contracts Come In During The Last Two Weeks Of The Quarter? Does your company even track that data? A client consistently that had a large percentage of its customer contracts close in the last two weeks of each quarter, which the CRO initially thought was “normal” because it was being driven by the customers. When that company switched from a calendar year quarter to a fiscal year quarter ending a month later, the same percentage of sales started closing a month later. Working with the CRO, Marc Pappalardo was able to help the company greatly reduce the percentage of contracts that closed during that two week quarter-end period.
Using Lean Six Sigma To Reduce Requested Changes To Your Contract.
An Example of How Marc used Lean Sigma to Reduce the Percentage of Contracts Closing at the end of the quarter.
An Example of How Marc used Lean Sigma to Reduce the Percentage of Contracts Closing at the end of the quarter.
What Are You Doing To Reduce The Number Of Requested Revisions To Your Contract? Each requested change to your contract results in lost time to close the contract, lost revenue for SaaS clients that will never be recovered, and lost money paying your attorney to negotiate. Using a Lean Six Sigma, you can reduce the number of requested cha
What Are You Doing To Reduce The Number Of Requested Revisions To Your Contract? Each requested change to your contract results in lost time to close the contract, lost revenue for SaaS clients that will never be recovered, and lost money paying your attorney to negotiate. Using a Lean Six Sigma, you can reduce the number of requested changes to your contract by looking at the data of what those requested changes are and how you can anticipate and meet those needs. Under Six Sigma, the “defect” you want to eliminate is each requested change to your contract. How do you do that? For example, I had a client that needed a specific data provision in its master agreement, which was non-negotiable. And my client’s customers always agreed to the provision once explained during a contract negotiation call with its attorney. I was able to eliminate negotiation of this clause by doing something rarely seen in B2B contracts: right before the clause I included a statement why the clause was needed and how it is a requirement to do business. A simple solution that is infrequently used.