Great dogma of contract negotiation: Difference between revisions

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This might not matter if the subject matter did not need specialist expertise. But, as it is, it ''does''. The {{isdama}} is a tortured piece of legal technology, and that’s before the institutions have injected their idiosyncratic, paranoid and often senseless [[credit|credit standards]] into it. Now, it’s an open point whether an {{isdama}} ''should'' still be so complicated<ref>In your humble correspondent’s view, it should not: most institutions impose absurd credit standards — this whole wiki is a testament to that.</ref> but the fact remains that it ''is''. And no [[management consultant]] has ever thought of simplifying the legal and credit content of the agreement before offshoring it to give the poor kids a chance.
This might not matter if the subject matter did not need specialist expertise. But, as it is, it ''does''. The {{isdama}} is a tortured piece of legal technology, and that’s before the institutions have injected their idiosyncratic, paranoid and often senseless [[credit|credit standards]] into it. Now, it’s an open point whether an {{isdama}} ''should'' still be so complicated<ref>In your humble correspondent’s view, it should not: most institutions impose absurd credit standards — this whole wiki is a testament to that.</ref> but the fact remains that it ''is''. And no [[management consultant]] has ever thought of simplifying the legal and credit content of the agreement before offshoring it to give the poor kids a chance.


Why? Because simplifying a complex legal document requires [[subject matter expert]]ise<ref>[[Legal]] ''and'' [[credit]].</ref> that no [[management consultant]] has. Most lawyers and almost every credit officer alive will swear blind that it really is a matter of life and death that we maintain that [[cross default]], complicated [[downgrade trigger]]s, and fifteen Additional Termination Events, and even if our one doesn’t the counterparty’s will, and in any case some [[management consultantMcKinsey analyst]] simply doesn’t have the technical chops to gainsay that assertion.
Why? Because simplifying a complex legal document requires [[subject matter expert]]ise<ref>[[Legal]] ''and'' [[credit]].</ref> that no [[management consultant]] has. Most lawyers and almost every credit officer alive will swear blind that it really is a matter of life and death that we maintain that [[cross default]], complicated [[downgrade trigger]]s, and fifteen Additional Termination Events, and even if our one doesn’t the counterparty’s will, and in any case some [[management consultant|McKinsey analyst]] simply doesn’t have the technical chops to gainsay that assertion.


So instead, the whole operation, replete with its tortured prose, over-engineered legal drafting and fantastical credit expectations, is lifted and shifted from a high-cost jurisdiction (where at least the people concerned have some institutional knowledge, some industry experience and a half-chance of understanding it) to one where the poor kids have no chance. As a result, process managers must create [[playbook]]s and negotiation guidelines which the low-cost negotiators must follow as if colouring by numbers. If issues arise that are not covered in the [[playbook]] the [[negotiator]] must ''[[escalate]]''. Due to the lack of expertise. [[escalation]] happens more; due to the remote location, it is more protracted.
So instead, the whole operation, replete with its tortured prose, over-engineered legal drafting and fantastical credit expectations, is lifted and shifted from a high-cost jurisdiction (where at least the people concerned have some institutional knowledge, some industry experience and a half-chance of understanding it) to one where the poor kids have no chance. As a result, process managers must create [[playbook]]s and negotiation guidelines which the low-cost negotiators must follow as if colouring by numbers. If issues arise that are not covered in the [[playbook]] the [[negotiator]] must ''[[escalate]]''. Due to the lack of expertise. [[escalation]] happens more; due to the remote location, it is more protracted.

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