Establishing a performance and revision framework across a dealer network
In a network whose contracts contained no performance mechanism, a target and reporting framework, annual revision protocols and a document-based exit design were embedded gradually into all dealer contracts.
Unmeasured performance, an unmanageable network
Weak performance was felt but could not be proven; terminations were left without grounds.
The revision had to be carried out gradually and with justification, without damaging the relationship.
Our Approach
Keeping the commercial objective at the centre, we broke the legal risks into measurable steps.
01 · Framework Design
The target, reporting, and evaluation mechanism was established.
02 · Contract Revision
The protocols were rolled out on a phased signing plan.
03 · Exit Design
A documented termination track was set up for persistent low performance.
Chronology
The main stages of the process.
Performance that can be discussed and defended
The network became manageable through measurable targets and an annual revision cycle; for the weak links, termination is now the result of a documented process.
- A performance framework written into the contract
- Phased revision protocols
- A documented termination track
- An annual evaluation cycle
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First we clarify the commercial objective, risk appetite, timeline, and the decision-makers' needs. We then break the work into legal analysis, document/contract structure, and implementation steps, and manage the process through a single point of contact.
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In a short preliminary meeting, we take in the objective, the available documents, the parties, the time pressure, and the critical risks. The scope, team, timeline, and fee model are then clarified.
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