Running Legal Like A Business - Ch. 16 - Contract Analytics
Ch. 16-18 of Running Legal Like A Business by Connie Brenton and Susan Lambreth, PLI Press, 2021, focus on contracts. First up at bat is author Andy Banquer of Quislex on contract analytics.
Banquer notes that aggregated contracts data allows companies to assess effectiveness of their:
- Contracting process
- Risk management and
- Resource management
To explain he uses the analogy to baseball statistics providing actionable insights for strategic decision-making. As I type these words I am watching Moneyball, which may be my favorite legal ops films of all time.* The film has it all: Data leading to conclusions counter to deep set assumptions, change management resistance, doubts overcome and seemingly unbelievable team wins. In ch. 15, Reed posited the rise of the "Quant Lawyer." Banquer expands on why adding more disciplined quantitative analysis to an evidence-based field that has historically favored qualitative analysis is essential.
Examples Banquer provides includes managing contractual risk more tightly, right sourcing to make sure highest-priced resources work on the highest-value work or speeding average time to close.
Along the way Banquer cover the 3 flavors of CLM: Workflow, plus Negotiation, plus AI tools for redlining and risk assessment. He recommends contract summaries and post mortems for deals that deviate from company standard and provides a good sample dashboard.
Before you leave this post, tell us what your favorite legal ops film is. And before you read the chapter, take Banquer's challenge to list in 60 seconds as many relevant data points derived from contracts as you can, then take a look at Appendix 16A to see how you did.
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*A few additional great legal ops films:Sully and The Founder; see post Legal Ops Videos