An early example of where things are headed.
In Post 228, Paula Doyle, Chief Legal Innovation Officer at the World Commerce and Contracting Association (WorldCC), made the claim that inefficiencies in the current commercial contracting process likely cost the global economy more than $1 trillion annually. We reach this figure by adding up the massive second-order effects caused by excessive contract complexity and poor process:
- Too many steps involving too many people (>50% transaction costs),
- Excessive wait times (9.7-day difference in cycle time between average and top performers),
- Buyers to give up and go elsewhere (abandonment rates of up to 57%),
- Post-execution losses (average of 9% contract leakage due to poor contract management).