Aligning Incentives Through Contract Terms
Mayer Brown has posted presentation slides and video from its recent webinar about increasing the value of sourcing contracts by linking the supplier’s profitability with how quickly and how well the supplier advances your business objectives.
The free webinar is a part of the firm’s Business & Technology Sourcing Webinar Series.
“Incentives can even be used for ‘stretch goals,’ where suppliers would be unable to commit to performance,” the firm says on its website.
Mayer Brown partners Brad Peterson and Linda Rhodes talk about supplier behavior and discuss how to use contract terms to drive exceptional supplier performance. Topics include:
- Use general terms to align incentives for success;
- Set and enforce service levels to drive exceptional performance;
- Implement milestone and other key incentives for projects; and
- Leverage liability provisions and termination rights to drive performance.
View the slides and the video.
