Contracting is a key corporate capability that lies at the heart of value creation and competitive advantage. It is unlikely that any business can survive, let alone prosper, without financially successful contracts. Given the importance of contracts to company success, evaluating negotiations and contract performance is essential.
The ultimate question during an evaluation is whether the contract was performed successfully. While many factors play a role in determining success, your negotiation strategy is especially important. As a result, you should have a process in place for reviewing your negotiations and for sharing the results with negotiators throughout your organization, regardless of whether they are on the sell side or the buy side.
Your review should take place immediately after negotiations are completed, whether or not they result in a contract. Because negotiations that produce a contract (and appear to be successful) occasionally fail at the implementation stage, you should revisit your review following performance of the contract.
During your review, you should consider the following questions. For additional detail, see Chapter 10, “Perform and Evaluate Your Agreement,” in Negotiating for Success: