The Miranda Priestly to your Andy Sachs. The Toby Flenderson to your Michael Scott. The Legal to your Sales departmentāoofāwe went there!
Whether you work at a high-brow fashion magazine, a paper company in Pennsylvania, or somewhere in the real world, it can feel like thereās always someone making your job harder than it needs to be. And these pains are especially poignant if your role is to close deals and to do it fast.
Weāre not here to hate on legal teamsāhey, those are our peopleāand we donāt think corporate attorneys are on an evil mission to antagonize account executives.Ģż
But itās undeniable that real internal challenges arise when getting a deal across the finish line. And the lack of understanding about what exactly causes the hold-up makes the whole mess even more infuriating.Ģż
6 reasons deals get stuck with legalāand what sales leaders can do about it
Recently, we sat down with sales coach and deal-closing guru, , and 51³Ō¹ĻĶųās own Chief Legal Officer, , to learn what drives them crazy about each otherās orgsāand even more importantlyāwhatās really going on when a deal stalls.
Hereās an insiderās view on why deals get stopped short and how sales teams can better partner with legal to get the deal across the line.Ģż
1. Deals come through with missing information
You know the saying, āThe devil is in the details?ā When it comes to closing deals, the devil is actually in not providing enough details. So says 51³Ō¹ĻĶųās CLO, Nguyen, āThe simplest way to waste time internally is not providing enough information to prioritize or contextualize the deal accurately.ā
Expert tip: Account executives can minimize the internal back and forth by providing critical details upfront.Ģż Examples include, when the deal is forecasted to close, the total dollar amount, and pertinent information from commercial terms.
2. Your prospect is an enterprise organization
āIn an ideal world, legal doesnāt touch the deal,ā explains Nguyen, ābut thatās not a reality when youāre prospecting enterprise companies.āĀ
Why the need for a hands-on approach? Enterprise orgs are more likely to have a large procurement team, a 50+ page contract, and yards of red tape that require legalās detangling expertise.Ģż
Worth the complexity? Yes. Speedy? No.Ģż
Expert tip: Bring legal into the discussion earlier in the processāas soon as the enterprise shows intent to buy. Partnering with legal before contract negotiations means getting guidance on what information to collect upfront, a forecast for time to close, and what else to expect from the process. (For example, smaller organizations may ask for your SOC certificate, whereas the IBMs of the world will require a full security review.)Ā
3. Avoidable commercial issues
Sales teams need the freedom to focus on selling. Legal teams need the trust that theyāre working in everyoneās best interest. But this shouldnāt mean that these teams are working in silosābecause when they do, it causes a slowdown with repeat, avoidable commercial issues.
Expert tip: Sales and legal must partner to educate AEs on common commercial issues and sticking points. Zwizinski says sales should then āpre-sellā the obvious sticking points like SLA, SaaS subscription fees, etc., to save everyone time.Ģż
4. Unnecessary or confusing contract language
If prospects are constantly bumping up against the same section in a contract or regularly object to specific language, itās a clear signal that something needs to change. On this, Zwizinski says, āYour internal selling process can slow down the deal time. And effective sales teams are tracking where these slowdowns regularly occur.ā
Expert tip: Zwizinski and Nguyen agree that an unnecessarily complex contract doesnāt serve anyone. If sales teams know what sections of the agreement cause an issue, itās time to partner with legal to adjust the language. This is another example of how building a relationship based on trust and an environment of cross-collaboration can help close deals more quickly.Ģż
5. Deal timing (think: EOQ)
Everyone gets busy at end of quarter. We repeatāeveryone gets busy at end of quarter. And legal teams feel the increase in pressure too, yet cannot clone themselves.Ģż
The hard truth is that timing can slow down a deal, and lawyers are people (weāre pretty sure) with more on their plates than whichever deal youāre waiting on. Even if itās not EOQ, lean legal teams regularly work on urgent company needs that require the teamās attention over whatever deal youāre working on.
Expert tip: Okay, you can guess this one by now. This is another scenario where including legal earlier in the process helps set expectations for both orgs. If somethingās too complex to push through before EOQ, wouldnāt it be less frustrating to hear that a week in advance? If you can do something to speed up time to close and hit your goals, donāt you want to know that as soon as possible? Consider inviting your friends in legal to attend pipeline review meetings so they have visibility into which deals are coming down the pike (or at least invite them to lunch to say thanks for all their help).
6. No one knowsābut they should
The scariest of all reasons a deal gets stuck is the reason no one knows. Huh? Itās true, many teams suffer again and again just to keep wondering where and why this happens. Andāoddly enoughāeven the most aggressive finger-pointing wonāt solve the problem.Ģż
Expert tip: Leveraging contract management software like 51³Ō¹ĻĶų solves this ānon-problemā by providing data points about where and how long deals are sitting. It might feel like legal is sitting on a deal, when in reality finance is working to get a discount approved or the counterparty is slow to respond. Either way, you canāt fix what you canāt see, which is why deal visibility provided by contract management software is crucial for closing deals faster.Ģż
Close deals 20% faster by getting legal on your sideĀ
Want to learn more in-depth tactical strategies for how to partner with legal and close deals faster? Watch our full conversation with Dale Zwizinski and Jessica Nguyen, where they dive deep into how high-performing teams are closing deals 20% faster by getting legal on their side.