This video discusses the challenges of aligning sales and legal teams in Software as a Service (SaaS) contract negotiations. The speakers aim to provide a practical framework for smoother contract processes, reducing friction between sales and legal departments and ultimately improving revenue.
Early Collaboration: Involving legal counsel from the beginning of the sales process, rather than at the end, is crucial to prevent last-minute conflicts and deal delays. This involves getting sales and legal in a room together early to discuss potential risks and align on contract terms.
Sales and Legal Alignment: Sales and legal teams should work together as a single unit, sharing information and aligning their messaging regarding the product and contract terms. This reduces discrepancies and unexpected issues later on.
Tools and Processes: Implementing tools and processes (e.g., playbooks, annotated contracts, clear communication channels) that allow sales teams to have more input and autonomy in the negotiation process reduces bottlenecks. This reduces the chance that legal will be the bearer of bad news at the end of the sales cycle.
Clear Communication: Establishing clear and structured communication channels beyond email (which is deemed inefficient and anxiety-inducing) is essential. A defined process for different stages of the deal helps maintain clarity and efficiency.
Understanding Risk: Sales teams need to understand the risks associated with the product to avoid selling something the company cannot deliver, leading to legal issues. Decision-makers (CEO, CFO) should be involved early on to assess and mitigate risks.
