The Depression-era economist and political scientist, Joseph Schumpeter (1883-1950), worried about the stagnation of capitalism and globalization long before globalization was a thing (and he wondered whether capitalism would even survive). The term “creative destruction” that Schumpeter championed was a way to describe a process in which the old ways of doing things are destroyed and […]
Blog
When Tradeoffs Become Trade-ups
In one of his recent blogs, Seth Godin wrote about the interesting dynamics of tradeoffs, for instance, making a laptop more powerful will probably affect battery life and its weight. So, trade-offs can be a sort of magic if done right —or a double-edged sword, good for some, not so good for others. I submit that […]
Games People Play with Vendors
In what seems like a strange message from a different era, a Harvard Business Review article in 2012 by Reed K. Holden, wrote about the games buyers play with vendors, and the fact that the relationship buyer “has been in steady decline.” Holden, the author of Negotiating with Backbone, contended that the relationship buyer was […]
Contracts and Baggage
I met University of Vermont Law Professor Oliver Goodenough recently at an IACCM/Stanford Law School event that discussed the future of contracts. He posed this question: “Does the term “contract” come with baggage?” The discussion that followed was lively. The simple fact of the matter is today’s mental model of a contract does come with […]
Culture of Innovation
It seems every company recognizes the importance of innovation. This is especially true for the IT industry, where often today’s latest software innovation is yesterday’s news. This is why it is intriguing to see InformationWeek taking a stab at pushing for a “culture of innovation.” A recent post outlined five techniques “to support and encourage entrepreneurship in your […]
A Vested View on Risk
I was at a conference focused on contracting and a law school professor asserted, “You have three ways to deal with risk. Transfer it. Accept it. Or Insure for it.” There is nothing much new with those options, shifting risk is a popular pastime. But I propose there is a fourth way that is even […]
Secession as a Negotiation Tactic Will Only Go So Far
In a recent Seth Godin blog, Secession vs. Commitment, he talks about the negotiation tactic of leaving: it is powerful because “when the customer/partner/citizen could bolt at any moment, we act differently.” It may be powerful, but it is a short-term tactic. A better dynamic is commitment, because it is a “creation tactic.” When parties […]
Challenge the Status Quo
We should always challenge, or at least question, the status quo. The status quo is great only if you want the same thing you have always had. But today’s business world is dynamic and companies demand innovation and value creation. Lawyers should embrace change and more progressive thinking from academia that is proving to be […]
Missing a Train
Nassim Nicholas Taleb, author of The Black Swan: The Impact of the Highly Improbable, makes a trenchant point when he says that “missing a train is only painful if you run after it!” Generally speaking, there’s always another train or bus coming along later. And besides you would not run after a plane you missed, would you? […]
Every Vested Contract is Unique
We are often asked, and sometimes even begged, to draft and share a sample contract. People say, “If only I could have an example contract.” Let’s look at why this is a bad idea through the lens of an actual situation. Let’s take an example from ISS, a large facilities management service provider that has […]