'Commitment Matters' blog cites an attention-grabbing comment from Mark Harris, CEO of Axiom, that long-term sales contracts typically experience 5 - 7% revenue leakage. In the post, Law Department blogger Rees Morrison observes, “lawyers are letting down their clients. Somehow, better contracts should put fingers in some of those dikes, savvier interpretations of their client’s rights, or better oversight of executed contracts could turn law departments that can claim a portion of the saved money as profit centers. We need to know if revenue leakage from contracts happens at that rate and what the law department can do to apply a tourniquet.”
Legal can obviously have an impact, but our take is that truly moving the needle on the opportunity requires an organizational approach and investment not only by legal, but also sales, finance and operations groups. Easier said than done, but what do you think? Has your sales operations group experienced similiar leakage? Any inputs on how you've addressed this issue?