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Licensed to do what?


Every business function wants to elevate its role, its influence, its status. So it is in this context that we should consider current conversations about the need for ‘licensed procurement professionals’. It’s an important conversation because it opens the opportunity to discuss our fast changing business environment and how commercial roles more broadly should evolve. And that’s where World Commerce & Contracting naturally tends to show its leadership through research – and that research certainly indicates the importance of upskilling to escape the limits of today’s procurement activities.

So should we embrace the idea of Licensed Procurement Professionals? Let’s set aside the immediate linguistic objection about the desination ‘professional’ – professions are nouns (lawyer, doctor, engineer, actuary) and there is no noun for someone who procures, unless it is ‘buyer’ or ‘procurer’, neither of which has much immediate appeal. But the more important questions are these: licensed to do what? Accountable for what? And to whom?

Licences exist for a reason. Society grants them where unqualified practice causes harm, and in exchange it demands something: a duty that extends beyond the employer. The doctor answers to the patient. The lawyer answers to the court. The engineer answers to public safety. In each case, the licence creates personal accountability for outcomes affecting people who sit outside the employing organization.

So test procurement against that standard. If (as has been suggested) the licence is to be grounded in ethical practice, the profession’s record based on its current practices invites awkward questions. How many suppliers driven into insolvency by imposed terms and stretched payment? How many jobs destroyed in the process? How many disputes generated when buying power was used to walk away from commitments? How many start-ups relieved of their margins, their innovation, sometimes their existence, by customers who knew they had no choice?

These are not fringe behaviors. They are, in many organizations, measured and rewarded. Procurement becomes the vehicle for their implementation and is trained accordingly by many of the primary education providers.

And if the foundation is not ethics or widely acknowledged social benefit, what is it? Cost cutting? So what – any function can cut costs; the question is at whose expense and with what consequence. Securing supply? So what – that is an operational duty, not a professional one. Compliance with policies set by others? So what – executing rules you did not shape and cannot challenge is the definition of administration, not professionalism. Professions are distinguished precisely by independent judgment, exercised against a duty of care, with personal accountability when that judgment fails.

None of this means procurement cannot earn professional status – and I have long been at the forefront of those who suggest it should. But the route is not a licence bolted onto the current practice taught by conventional training programs. It runs through defining what the discipline is accountable for: perhaps things like supporting the health of the markets it operates in, the reliability of the commitments it makes, the economic value it creates, rather than merely the cost it extracts or the compliance it imposes.

Until the accountability question is answered, a licence is just an award in search of a purpose. And credentials without accountability do not create professionals – they create people with certificates.

Professional Procurement Practitioner License certificate issued to Sarah J. Anderson by State Board of Procurement and Supply Chain Management
Framed Professional Procurement Practitioner License for Sarah J. Anderson

Broken is a choice


Two weeks on, I reflect on Docusign’s Momentum events. These have become a barometer for where agreement management is heading, and London 2026 confirmed an important message: the process by which most organizations manage their agreements is broken.

Businesswoman pointing to workflow diagram on whiteboard in office meeting

In my conversations with delegates, the reasons for that were clear and consistent. Fragmentation across functions and systems means agreements are delayed, data sits in disconnected repositories and e-mails, multiple departmental hand-offs are required to gain approvals. In today’s demanding market conditions, the status-quo is simply unsustainable. One CPO told me: “It’s not just embarrassing, it’s career threatening when I really have no clue how the agreements I put in place are performing”.

I was impressed by the numbers attending Momentum in London and by their evident enthusiasm to transform how they manage agreements for the better. This was especially the case on the customer message board – always a risky proposition – yet here there was tremendous positivity about the impact Docusign has had. Right now that impact has been most obvious in efficiency: reduced workload, faster turnaround. But as the Docusign team were keen to explain, efficiency is only the beginning. AI-equipped solutions are shifting from efficiency to effectiveness and action, and that is where the real value lies, especially in post-award management.

It wasn’t the diagnosis that made the event compelling – many of us have been making it for years – but the evidence that things really are starting to change. Customers like Aon and Experian described their journeys from fragmented, manual agreement handling to something far more coherent, and in doing so demonstrated how a specialised AI is elevating contract lifecycle management to levels that simply weren’t achievable before. These are not early stage pilots; they are large-scale implementations in complex organizations and they show that there is now a cure.

Docusign itself brings a perspective few can match. With nearly 1.9 million customers, it has an extraordinary vantage point over how the world actually agrees, and its capabilities continue to develop at an impressive pace. This year’s introduction of the Iris AI assistant and agents, together with Agent Studio for building custom agreement workflows, signals a shift from managing documents to actively moving work forward.

Yet the message was tempered with realism. In my interview with Stéphane Barberet, head of Docusign in EMEA, he was careful with his advice to ‘aim big, start small’. Technology is not an immediate fix. Simply implementing new systems on top of poorly defined processes is not the answer and it never has been. Technology amplifies whatever it is applied to, including dysfunction. The organizations making genuine progress are those that treat AI as a catalyst for rethinking the process and the value it should be generating.

The prize that awaits us justifies the ambition. Globally, an estimated $2 trillion leaks away from contract value every year. This is a finding that builds on and confirms WorldCC’s work stretching back almost 15 years on the cost of poor contract and commercial management and the sources of that erosion. This is commercial policy failure hiding in plain sight.

Docusign is not alone on its journey. Its close collaboration with market leaders such as Legora underlines a commitment to innovation driven by ecosystem engagement and customer outcomes rather than product features. The message from Momentum is clear. The question for every executive team is whether they continue to accept a broken process as just an unfortunate cost of doing business,  or whether they recognise that, increasingly, broken is a choice.

If there had been a vote in the main hall, it’s clear that the sentiment would have been overwhelming: it’s time to change.

Why ‘broken’ just ran out of excuses

Rusty chain breaking apart with glowing sparks and debris

“The way agreements are handled today is fundamentally broken” – Allan Thygesen, CEO, Docusign

In truth, there never was a golden era of agreement management – but in an increasingly interconnected world, with increasingly complicated rights, obligations and regulations, the ability to manage performance has become a critical capability.

So why did anyone allow agreement management to become ‘broken’? It’s not new news – WorldCC has been researching and writing on this for more than 20 years. And people were listening, working to contain the value leakage, which back in 2013 WorldCC first evaluated as equivalent to an average 9.2% of revenue. 

The answer is that no one wanted to own the problem. It was just too difficult. Contracts sat with legal. Performance sat with the business. Obligations sat wherever someone remembered to track them – a spreadsheet, a calendar reminder, a relationship manager’s memory. Each function optimised its own piece and protected itself from its own risks, with no one positioned to see or manage the agreement as a whole.

And when it came to technology, fragmented systems defeated efforts to deploy contract lifecycle platforms. At best, CLM offered a system of record, not a system of action. They tell you what you signed. They don’t tell you what’s happening.

AI changes that equation. For the first time, it’s possible to read across the silos – contract terms, performance data, regulatory change, counterparty behavior – and surface what matters. That’s what we mean by commercial intelligence: not a smarter repository, but an integrated function that continuously connects agreement to outcome and flags the gap before it becomes value leakage.

Docusign shares that same perspective. At its annual Momentum event in London, we heard from industry leaders like Experian and Aon about how they are tackling these challenges by deploying Docusign’s AI-native Intelligent Agreement Management (IAM) platform to eliminate inefficiencies and turn contract management into a source of competitive advantage..

‘Broken’ is no longer inevitable: it’s a choice.

If you’re interested in what an AI-native intelligent agreement platform looks like in practice, Docusign’s overview of IAM is a good place to start: https://www.docusign.com/ 

The multidisciplined athlete


“Finance professionals must become leaders who pair financial rigor with data literacy, business acumen, and strong communication.”

That’s the view of James Rivett, CFO of Deutsche Bank Americas, expressed in a recent Wall Street Journal interview. What he describes has similarities with the opinions of WorldCC when it talks about the emergence of the ‘commercial integrator’ – a role that orchestrates across functional silos to ensure speed and judgment in decision-making.

So are these views compatible, or in conflict?

Analysis suggests that the Rivett interview maps onto WorldCC thinking in some important ways, but also reveals some telling gaps that actually strengthen the case for the Commercial Integrator model.

Where it aligns well

The “multidisciplined athlete” framing is almost directly analogous to what WorldCC argues about the commercial professional – that technical craft (contracting, financial controls) is necessary but no longer sufficient. Rivett’s four disciplines (financial fluency, data literacy, business acumen, communication) closely mirror the blend WorldCC advocates: commercial rigour, intelligence capability, relationship management, and stakeholder influence. The architecture is similar even if the vocabulary differs.

James Rivett’s point about bottom-up AI adoption is also strongly consistent with WorldCC’s critique of enterprise transformation programs that impose tools without embedding them in workflow. The “daily pain points” argument is exactly what WorldCC’s Commercial Intelligence Office concept addresses. Intelligence has to be useful at the point of commercial decision-making, not aggregated upward into dashboards nobody acts on.

Where the gaps are revealing

The most significant gap is structural. Rivett describes a function becoming more capable – finance gets smarter, more data-literate, better at communication. But this is still a vertical transformation. WorldCC’s argument about the Commercial Integrator is that the problem isn’t any one function’s competence; it’s the absence of a horizontal integrating architecture that connects buy-side and sell-side commercial intelligence across functions. Rivett’s model doesn’t resolve that. A smarter finance function still operates in its own swim lane.

In the interview, Rivett reveals that when he took over the CFO role, he initiated a time-and-motion study and found that 40% of his team’s time was spent reconciling data. That figure is striking and very similar to WorldCC findings regarding contract management and procurement teams. His response to that discovery is characteristically finance-centric: automate the reconciliation. The WorldCC lens would ask a prior question – why is data so fragmented in the first place, and who owns the commercial data architecture that prevents reconciliation being needed at scale? That’s a Commercial Intelligence Office question, not a finance efficiency question.

James Rivett’s investor relations background shapes his definition of communication in a particular direction, towards external stakeholders, boards, regulators. WorldCC would push this further into the internal commercial relationship: how does the organisation communicate commercial intent and obligation across the delivery chain? That’s a contracting and relationship management question that finance leaders rarely own.

The net reading

Rivett’s vision is a sophisticated version of function improvement. WorldCC’s Commercial Integrator argument is about system design. The two aren’t incompatible and, in fact, a finance leader with Rivett’s profile would be a natural ally of a Commercial Integrator architecture because they’re answering different questions. Rivett is asking “what does a great finance professional look like?” WorldCC is asking “what organisational architecture lets commercial professionals of any discipline act on shared intelligence?” That’s the more fundamental and less commonly asked question, which is arguably where WorldCC’s distinctive contribution lies.

Beyond Procurement – Part 1


The Limits of a Process Function

At its core, Procurement operates as a process discipline. It exists to bring rigour to the management of spend, to create structure around sourcing decisions, to enforce compliance, to manage supplier selection, and to ensure that the organisation buys at the right price, from the right sources, under approved terms. These are legitimate and necessary goals and the training frameworks that support procurement professionals have been designed to deliver them.

But process disciplines carry an inherent constraint: they are ultimately in service of others. Procurement executes on behalf of the business. It does not typically own the commercial strategy it is asked to implement and it rarely has – or seeks – final accountability for whether a relationship with a supplier generates the value originally envisioned. It often becomes involved when a need has already been defined by someone else, then works within risk and legal frameworks shaped by others, and often exits once a contract is signed.

This structural positioning matters because it means that even a highly capable procurement function, performing its process role with excellence, may be doing little more than efficiently executing a strategy it had limited influence in shaping, against a commercial model it had no hand in designing, with accountability for outcomes that largely sits elsewhere.

Procurement leaders are acutely aware of this tension. Talk of “expanding the function’s role,” of becoming a “strategic partner,” of moving “beyond transactional activity,” has been a constant refrain for at least two decades. The language of integration, of procurement as the connective tissue between supply markets and organisational strategy, is increasingly common. The aspiration is real and necessary

But aspiration is not architecture and architecture, in this case, requires something that pure procurement training and credentialing does not provide – a genuinely holistic view of the commercial lifecycle, grounded in theory, validated by research, and capable of withstanding the volatility of the environment organisations now face.

in Part 2, I’ll explore what this means for today’s practitioners.

Older man warning younger man not to sign the wrong contract at office desk
An older man urgently warns a younger man not to sign the wrong contract.

Designing for the Market: Contracts, AI, and the Missing Link in Organizational Transformation


One thing is agreed – organization’s are facing high levels of uncertainty. Most commentary then falls into one of two camps. Consultants describe the need for internal organizational change – new structures, new leadership models, new capabilities. Functional groups, meanwhile, interpret disruption through the lens of their own future relevance. Procurement, legal, finance, and IT each argue why their discipline will become more important. Both perspectives miss something fundamental.

The real challenge facing modern organizations is not primarily internal. It lies in how effectively they design and manage their commitments to the market – to customers, suppliers, partners, platforms, and regulators. Yet the mechanisms through which those commitments are defined and governed remain poorly understood. And this is where contracting should play a central role.

Disruption itself is not new. In the 1990s, the emergence of the worldwide web and the collapse of the Soviet system reshaped markets in ways that felt just as dramatic as today’s advances in AI and geopolitical uncertainty. At IBM, where I led the reengineering of the company’s global approach to contracting, we learned an important lesson. Transformation did not begin with internal restructuring. It began with understanding the commitments the market required us to make.

Customers expected consistent global availability, centralized ordering, coordinated demand management, integrated payment systems, and dependable service delivery. Those expectations defined the commitments we had to enable in our contracts – and they were the antithesis of the organizational capabilities at that time.

Only once those commitments were clear did internal redesign follow. Systems, policies, resource deployment, and management structures were aligned to support them. It was an outside-in redesign.

Contracting, properly understood, acts as a commercial integrator. Because every contract requires alignment across policies, processes, systems, risk management, and operational capability, defining what future contracts must contain becomes a practical catalyst for coordinated organizational change.

Until now, however, there has been a fundamental limitation. The information embedded in contracts has been extraordinarily difficult to marshal – distributed across documents, systems, emails, and the experience of individuals. The commitments that actually governed the enterprise’s relationship with the market were fragmented and largely invisible. And this is where AI begins to change the equation.

That is not because it can redline documents faster (an application that risks reinforcing the outdated view of contracts as static paperwork). but because it can finally make the commercial data embedded in contracts usable at scale. Through appreciating the power of interconnected data, contracting becomes both the mechanism for designing market commitments and a powerful intelligence system for sensing how those commitments must evolve.

AI can connect and interpret the thousands of obligations, performance conditions, pricing mechanisms, service levels, governance provisions, and change mechanisms that exist across an organization’s agreements. Instead of sitting inside documents, these elements can become structured intelligence about how the enterprise actually operates in the market. Three capabilities start to emerge.

First, contracts become an operational map of commitments, showing what the organization has promised, to whom, and under what conditions.

Second, they become a real-time market sensing system, revealing changes in customer expectations, supplier capabilities, pricing dynamics, and risk exposure.

Third, they become a design tool, helping organizations shape new commercial models and commitments that better reflect evolving market realities.

Seen this way, AI elevates the strategic importance of the contracting process.

Now, for the first time, organizations have the opportunity to treat their commercial agreements not as static documents or isolated transactions, but as a dynamic, interconnected system describing how they engage with the market, and how that engagement must continually evolve. Those that continue to view contracts through a traditional lens will struggle to make sense of AI or operational redesign.  The real opportunity is not simply faster contracting. It is contract intelligence as the foundation of a market-aligned operating model.

Photo by Antoni Shkraba Studio on Pexels.com

The Aftermarket Hasn’t Changed. The Constraints Have.


For decades organisations have understood that real value lies not in selling products, but in delivering performance over time. Aerospace introduced “power by the hour,” aligning payment with engine availability rather than spare parts. Industrial leaders such as SKF developed models focused on reliability and operational outcomes. Customers want to buy capability, not equipment.

So why didn’t outcome-based and lifecycle models become dominant long ago?


The limitation was capability. These approaches depend on trusted data, visibility into usage, operating conditions and performance. That data was incomplete, expensive or difficult to validate. Contracts linking payment to outcomes carried too much uncertainty, so commercial arrangements continued to operate with fixed pricing and rigid risk allocation.

This constraint both reflected and reinforced commercial fragmentation. Pricing, service delivery, finance and contracting operated separately, each holding part of the picture but none seeing the whole. Adaptive models were simply too risky to scale.

That constraint is now disappearing. Digital connectivity, sensors, analytics and AI are making performance visibility routine. Organisations can increasingly understand value creation as it happens rather than reconstruct it months later. The technical barriers that once limited lifecycle and outcome-based approaches are rapidly eroding.

Across industries, the aftermarket is becoming the primary engine of growth and margin. Revenue shifts toward long-term service relationships. Customers expect availability, efficiency and outcomes, not transactions.

But now, volatile markets mean that pricing and cost management must become dynamic – and contracting has become the constraint. Most agreements are still designed to create certainty at signature. Prices are fixed, risks allocated once, and governance assumes stability. Yet the environments those contracts govern are defined by continuous change. Renegotiations increase, change orders multiply and commercial friction grows. Organisations generate better insight but are struggling to act on it.

The barrier is no longer technology. It is commercial design. Organisations possess increasing commercial intelligence but lack integrated mechanisms to use it. Pricing teams see signals contracts cannot accommodate. Service teams understand performance realities without authority to adjust terms. Finance models remain disconnected from operational variability. Legal and contract management focus on compliance rather than the value that’s created during execution.

This fragmentation is structural and it is why the contracting process and contracts themselves must become governance frameworks. Through a streamlined process, contracts must define how pricing adapts, how performance is measured, how data is shared and how decisions evolve over time. The purpose of contracting shifts from locking terms to enabling controlled change.

Markets have already changed and technology has already changed. Contracting capability and capacity now determine whether organisations can keep up.

In an AI world, what’s your differentiator?


“I’m so excited about what Copilot is doing for us”, gushed an attendee at a recent contract management event. “We are serving the business so much faster and soon the quality of output will mean we can avoid many of the traditional reviews and approvals.”

I don’t disagree with those observations, though I do wonder why that individual wasn’t recognizing that they may rapidly become one of those eliminated ‘review and approval’ steps. WorldCC’s recent executive dialogues reveal a striking convergence across buy-side and sell-side leaders. Regardless of role or sector, participants described the same pressures: the need for faster decision cycles, clearer accountability, stronger data visibility, adaptive contract structures, and earlier commercial involvement in strategic initiatives. This alignment signals something important – the challenge and the opportunity created by AI is no longer functional; it is systemic.

Core AI capability is rapidly becoming a great equalizer. Large language models and agentic tools are making sophisticated analysis, drafting, and pattern recognition widely accessible. These technologies will transform productivity, but they are unlikely to provide lasting differentiation. When everyone has access to similar tools, advantage shifts elsewhere.

For professionals in legal, procurement, and contract management, the question therefore becomes “what is the source of sustainable value?” It cannot be the technology itself. It must lie in the judgment, commercial insight, relational intelligence, governance design, and strategic framing that technology alone cannot provide. Tools can generate options; only skilled practitioners determine which commitments are worth making and how they should be structured to deliver performance. Unless they are bringing insights and intelligence that go beyond those delivered through AI, they become irrelevant.

This is precisely why institutions such as World Commerce & Contracting, NCMA and the CCM Institute matter. In a landscape where baseline capability is increasingly automated, differentiation comes from building and maintaining shared and adaptive standards, advanced practice, research-driven insight, and the continuous development of evolving professional judgment. Sustainable advantage will belong to organizations that are engaged with the formation of thought leadership, cultivating these capabilities deliberately, not those that assume technology is a substitute for them.

High-performing organizations are already responding. As we saw in our 2025 Global Benchmark Report, the leaders embed commercial expertise early, pre-align baseline terms with key partners, and design governance pathways that accelerate execution. Speed, in this context, is not a trade-off against control; it is the result of intelligent design.

Technology is reshaping expectations in other ways as well. Contracts contain vast stores of operational and financial data, much of it historically inaccessible. Modern tools can surface obligations, detect performance risks, and generate insight, but only if organizations resist the temptation to automate broken processes. Technology should inform decisions, not scale inefficiency.

Meanwhile, the one-size-fits-all contract is becoming obsolete. Regulatory divergence, geopolitical tension, and cultural variation demand adaptive agreements engineered for execution, not uniformity. Resilience must be designed into contract structures through mechanisms such as clause libraries, review triggers, and structured amendment processes.

Perhaps most encouraging is that the capability gap is less about skills than deployment. Many commercial professionals already possess strong analytical abilities, yet too much effort is spent resolving problems after they occur. The future belongs to organizations that position commercial teams earlier — shaping deals, preventing friction, and aligning stakeholders before value leaks away.

Taken together, these signals point to a deeper shift: contracting is evolving from document creation to intelligence generation to operating model design.

Organizations that fail to modernize – or simply think that using Copilot and agentic AI provides competitive advantage – are missing a key point. Speed, control and access to data are features of a process. The future advantage will not belong to those who manage contracts most efficiently. It will belong to those who design and execute distinctive commercial capability.

What Panic Buying of Toilet Paper Teaches Us About Contracting


When uncertainty spikes, people do not behave rationally, they behave defensively. The panic buying of toilet paper during the pandemic was not about hygiene. It was about control, reassurance, and fear of being exposed if systems failed.

The same dynamics play out inside organisations.

When markets become volatile, organisations retreat to what feels safe: rigid templates, maximum liability, prescriptive SLAs, and heavy approval gates. Like stockpiling toilet paper, these actions offer psychological comfort, not real protection. Individually, they seem prudent. Collectively, they create friction, delay, and value loss.

Panic buying accelerates because people observe others doing it. Empty shelves become proof that “someone knows something I don’t.” In contracting, the equivalent is defensive escalation—legal tightening terms because procurement is nervous, finance imposing controls because risk feels opaque, operations bypassing governance because it is too slow. Fragmentation amplifies fear.

The deeper issue is not behaviour; it is system design. Retail supply chains optimised for efficiency lacked shock absorbers. Many contracts are the same: designed for stability, not disruption. When change occurs, every issue feels existential because contracts lack tolerance bands, graduated responses, or clear authority to adapt.

This is where contract and commercial management proves its value. CCM is not an administrative function—it is a stabilising discipline. Its purpose is to create confidence under stress: confidence to act without escalation, to collaborate without hoarding rights, and to absorb change without triggering conflict.

Panic buying stops when people trust the system will still work tomorrow. Poor contracting persists when organisations do not trust their relationships to survive change. Mature CCM exists to prevent both

Confronting The Deluge: When Self-Interest Drowns Collective Progress


The ancient Mesopotamians carved their story of the great flood into stone tablets. The Deluge wasn’t divine punishment: it was what happened when each person looked only to their own survival, when collective action became impossible, when short-term protection trumped long-term flourishing. And we are living our own version today.

Walk into most commercial negotiations in 2026 and you’ll see contracts designed to protect individual organizations rather than create shared value. Terms where risk is shifted, not shared. Timeframes set to match quarterly pressures. Innovation stifled because it requires levels of trust we no longer have. It’s not that anyone set out to build this system. It emerged, and rose steadily, the way flood waters do – and each organization seeks safety in isolation, rather than through collective action.

When uncertainty surrounds us – political division, market volatility, stakeholder pressure – self-protection appears defensible, rational, safe. But ultimately, it leads to loss of value and threatens our future.

Picture the commercial landscape a decade from now, if it is shaped by today’s defensive decisions. Coalitions fall apart and those that could have happened never form. Programs that could have succeeded are abandoned or cut back due to cost overruns and delays. Rather than aligning, each organization puts its own protection first – different risk appetites, different measures of success. different attitudes to data sharing. They hold endless meetings, produce multiple papers, sign contracts no one can understand and disband in disarray amid mutual recriminations. Perhaps a construction firm develops a breakthrough approach to affordable housing through contract structures that share risk over fifteen years. But competitors can’t adopt it because their contracts are standardized for protection, not innovation. Investors move on. The breakthrough dies.

So here’s how the commercial and contracting deluge happens. Uncertainty rises and organizations focus on how to protect themselves; collaboration is declared, but not put into effect;  problems compound and they are all blamed on someone else; trust is destroyed so further protective measures are introduced, driving up costs and destroying opportunity. Given the behaviors, each protective move is understandable. Each defensive contract makes sense given the pressures. But ultimately, they offer an illusion of protection and a guarantee of sub-optimal results.

The ancient tablets described a world that drowned because people couldn’t act collectively when it mattered. The modern version is quieter: we risk drowning  ourselves in self-interest, each organization building its own ark, discovering too late that isolated arks don’t save civilizations.

When commercial relationships default to self-protection, time horizons collapse. Real breakthroughs may take years of iteration – like Rwanda’s drone blood delivery or India’s telecommunications transformation. But protective thinking can’t accommodate ten-year horizons. We optimize for this quarter, we resist adaptive or agile relationships because we say they are too risky, that we want certainty.

Your organization might be uniquely positioned to address major business opportunities or societal challenges through contracting relationships. But if you’re focused on protecting yourself from every risk, you’ll never deploy those capabilities where they matter most. However, this isn’t inevitable. History shows the way forward: narrow focus, capability-led action, long time horizons, collaborative coalitions built on shared risk and shared reward. We know it works – from developing unleaded gasoline to seat belts to maternal health systems. Shipping container standardization turned global trade from chaos into a system, but only after competitors agreed to share specifications rather than protect proprietary designs. The internet itself required telecommunications companies to adopt common protocols. Nike and Apple combined fitness tracking with sportswear. The biggest commercial breakthroughs come through partnership, not protection.

Commercial contracting operating in a spirit of shared risk and reward is central to all of them. The question is whether we’ll choose this approach. Right now, our research continues to show that we say we want greater collaboration, but we don’t believe it will happen. It’s a choice whether we structure a contract and design a relationship that seeks to protect us from every risk, or build one that creates shared value.  

The Mesopotamians couldn’t stop their deluge. But ours is commercial, and it rises from accumulated defensive decisions, not rain. Which means we can choose differently. We can ask: What challenges could our contracting relationships help solve? Who needs to be in the coalition? What would unlock real scale? What time horizon does change require? We can build contracts that deploy capabilities toward impact and outcomes, instead of just managing exposure.We can form coalitions that persist long enough to matter, instead of protecting ourselves into irrelevance. We can choose collaboration over self-interest, shared risk over shifted risk, collective progress over individual protection.

Or we can keep building our isolated contractual arks, wondering why the waters keep rising around us.