Contract Progress Management in Workflow

Monday, October 22, 2012
Every business has to do with Contracts.
And, "Conclusion of a Contract" it is a very important human process, yet it is cumbersome. It requires division of labor because of specialization. Want to make it efficiently more even a little bit.

By the way, Japanese major companies demand 'Conclusion of NDA (Non-disclosure agreement)' in the beginning of a trade. However, what is written on the template is the mostly the duplication of "Unfair Competition Prevention Law" (1993). Sometimes matters about basic right as written in "Paris Convention for the Protection of Industrial Property" (1883) are added in the contract. Anyway, the company on the side of receiving the contract will be forced to 'barren work' of checking if "something strange have been written" or not.

We would want to design the business processes in mind that the Legal check includes also extremely unproductive matters like "conclusion of NDA".

# Japanese GDP might grow steadily if 'NDA templates' by all major companies had been changed to 'Let's comply with the Unfair Competition Prevention Law' only...

In the following Legal Checking Workflow, Task of [2. Approve Draft of Contract] by the Boss and [3. Approve Draft of Contract] by the Legal are able to be skipped.

[Contract flow]

In such a case presenting the contract for the sale and purchase in template of your side to the other party, you should skip the legal check [3. Approve Draft of Contract]. Also, even if the contract that has only price element like "Individual Outsourcing Contract", you should better to omit the checks of Legal. On the other hand, contracts that are very little implication in a trading negotiation like 'NDA Conclusion', you should better to omit approval by the Boss.

In addition, both of the Legal and the Boss can be omitted at the same time. Though it is limited to fewer cases of the contracts that is concluded with no approval in reality , you could omit both of the checking and then simply [1. Register Contract Draft] (to record the contract), if you had business authorization for the contract , and no need to be approved to it by the Legal.

It should be noted that, despite it was created by your side or the other party, the contract will be processed in this Workflow sample.

By the way, various small Tasks will be included in the Task of [4. Get the Consent]. In some cases, consultant by the legal or by the Boss will be needed. Tasks not formulaic (Ad hoc task) in this manner, it is difficult to define as business processes. Basically it should be defined as the task of a big lump together, the detail should be dealt with in negotiation skills training of personnel or in improving of the manual. Concretely speaking, for example, it would be better to develop a "rule of concession line"such as to set up an "Exclusive Jurisdiction" which the other party takes priority, that would occur confliction everyday.

[Contract flow "1x. Response to Instruction by Boss" screen]

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