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'''Headline''': ''Don’t make what you don’t need.'' <br> | '''Headline''': ''Don’t make what you don’t need.'' <br> | ||
Don’t make things ''before'' they are needed, or if they ''aren’t'' needed. Seems obvious, right? In the contract [[negotiation]] world, “manufacture” is [[sales]]-led and the negotiation process with direct client — you can’t negotiate without one, so there is buyer for every product, right? — so {{wasteprov|overproduction}} seems irrelevant. But is it? | |||
*Many {{tag|contract}}s get negotiated, but never executed: the client may not be serious, it may change its mind, or it may not accept your fundamental terms. Some times this is foreseeable, but it should be [[Sales]]’ job to identify and weed out clients who are highly likely never to executed a contract. Finding out you have a deal-breaker after a nine-month negotiation is a ''huge'' waste of time and resources. | *'''The one that craters''': Many {{tag|contract}}s get negotiated, but never executed: the client may not be serious, it may change its mind, or it may not accept your fundamental terms. Some times this is foreseeable, but it should be [[Sales]]’ job to identify and weed out clients who are highly likely never to executed a contract. Finding out you have a deal-breaker after a nine-month negotiation is a ''huge'' waste of time and resources. | ||
*Even where the contract is executed, the revenue that accrues is not a function of executing the contract, but ''trading'' under it. A {{tag|contract}} that is concluded but rarely or never traded under is an example of {{wasteprov|overproduction}}. Again, Sales should be responsible for identifying good quality potential revenue, and should be | *'''The dud''': Even where the contract is executed, the revenue that accrues is not a function of executing the contract, but ''trading'' under it. A {{tag|contract}} that is concluded but rarely or never traded under is an example of {{wasteprov|overproduction}}. Again, [[Sales]] should be responsible for identifying good quality potential revenue, and should be incentivised — that is to say, ''penalised'' for the costs of overproduction, the same way they are rewarded for revenues that accrue on sensible contracts — not to introduce poor prospects into the onboarding funnel. No financial services firm does this, of course. | ||
'''Summary''': {{wasteprov|Overproduction}} is generally a [[sales]] problem. It is not easy to fix as it involves predicting the future, but the costs can at least be allocated to sales (in the same way that revenue is!) <br> | '''Summary''': {{wasteprov|Overproduction}} is generally a [[sales]] problem. It is not easy to fix as it involves predicting the future, but the costs can at least be allocated to sales (in the same way that revenue is!) <br> | ||