10 Elements of an Effective Agreement

Crafting effective agreements
One of the questions you ask in determining if an agreement is legally

binding is whether there was ever a meeting of the minds. To have a true
agreement for results, you also have to have a meeting of the hearts.
Many consumers fall into the trap of making use of agreements and or templates that
they have received from third parties with can lead to horrific consequences.
Standard text book agreements normally have the necessary structure and legal
protection required. Even a skilful attorney must be cautious to present an agreement
that has been crafted for another client and work form that copy. A prudent professional
will always start off with a “standard original template” and then use other
agreements to assist in the efficient drafting of the same. Past agreements are only
used to retrieve past creativity which is stored as intellectual capital to the business.
THERE ARE NO SHORTCUTS

But you have done these many times before a consumer may say. Don’t you just take a
copy of other clients and just make amendments …………A rhetorical question??? The
answer is clearly no.
THE REAL RISK

The real risk is that an agreement that has been crafted for third party may have had
some very important clauses removed, that in that specific agreement was not required.
THE SOLUTION
Outside the framework and legacies the IPMG approach to crafting contracts is for the
clients to answer questions in their own way without influence. Based on the client’s
responses to the below questions, further questioning may be required to first
understand, articulate and then document the clients requirements as understood by the
Planner. Once this has been done we then test our understanding to ensure that the
agreement that is then drafted is according to your expressed intention and not a hybrid
of the clients expressed intention and the Planners interpretation which could result in
an agreement being signed that may not partly and wholly satisfy the clients
requirements for the outcomes that they expected.
10 elements of an effective agreement
One of the questions one asks in determining if an agreement is legally binding
is whether there was ever a meeting of the minds. To have a true agreement for
results, you also have to have a meeting of the heart.
The elements of an effective agreement are:
1. Intent and vision

2. Roles
3. Promises
4. Time and Value
5. Measurements of satisfaction
6. Concerns, risks, and fears
7. Renegotiation/dissolution
8. Consequences
9. Conflict resolution
10. Agreement?
Here is an explanation of each element. The many examples that follow will
make it clear why each element is essential.
1. Intent and vision:

This is the big picture of what you intend to accomplish together. The
first step is sharing a big picture of what you are doing together as a
context for the details. The clearer and more specific the measurable
detail of desired outcomes, the more likely you will attain them as
visualized.
2. Roles:
The duties, responsibilities, and commitment of everyone must be
clearly defined. Everyone necessary to achieve the desired results
must be part of the agreement.
3. Promises:
The agreement contains clear promises so that everyone knows who
will do what. With specific promises, you can tell if the actions will get
you to the desired results and what actions are missing.
4. Time and value:

All promises have deadlines for completion. These are called “by-
whens” – by when will you do this and by when will you do that. The
length of time the agreement will be effective is also important. Value
is an understanding of who gets what for what. Is the exchange
satisfactory? Is if Fair? Does it provide adequate incentive? Clarity is
critical because everyone must anticipate satisfaction or someone will
sabotage the transaction. Remember that value has many forms, and
it is essential to understand the different kinds of value people will be
satisfied with.
5. Measurements of satisfaction:
To prevent disagreement, the evidence that everyone has achieved
his or her objectives must be clear, direct, and measurable. This
element is critical because it eliminates conflict about the ultimate
question – Did you accomplish what you set out to do?
6. Concerns, risks, and fears:

Bringing as-yet-unspoken fears and risks to the surface provides the
opportunity to anticipate and prevent some of the challenges likely tom
come up during the collaboration. This discussion will deepen the
partnership you want. This is where you get to say what’s still creating
“chatter” about moving forward, and others get to respond and take
care of any fear.
7. Renegotiation/dissolution:
No matter how optimistic and clear you are, it will become necessary
to renegotiate promises and conditions of satisfaction. Circumstances
change, and it is critical to anticipate this at the beginning so the
relationship can evolve and prosper. It is also crucial to provide
everyone with an exit strategy that they can follow with dignity. Anyone
who feels imprisoned in a transaction, partnership, or relationship
cannot make his or her maximum contribution to the enterprise. It is
essential to recognize that the relationship is much more important
than the agreement. Things keep moving forward if the functional
relationships are intact, not because of a lengthy legal contract.
8. Consequences:
There are two kinds of consequences. Although you may not want to
police the agreement, it is important to agree on consequences for
anyone who breaks a promise. Equally, if not more important, it is
essential to understand the consequences to everyone (including
people who are not even part of the agreement) if the collaboration
does not accomplish its purpose.
9. Conflict resolution:
Conflicts and disagreements arise when people work together. If you
agree to step into the attitude of resolution, and have an agree
process that leads to a new agreement, resolving conflicts will be
“normalized.”
10. Agreement?
When you have dialogued about the first nine elements, it’s time to ask
whether you trust moving forward. Everyone ought to be satisfied and
ready to take action. Now is the time to work on the agreement until
you are satisfied that you have an agreement. If you’re not clear that
you do have an agreement you can trust, then you don’t! Unless and
until you are satisfied, do not move into action. You will not have a
shared vision to work toward. If you’re not clear that you do have an
agreement you can trust, then you don’t!

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Crafting effective agreements

One of the questions you ask in determining if an agreement is legally

THERE ARE NO SHORTCUTS

THE REAL RISK

The elements of an effective agreement are:

1. Intent and vision

1. Intent and vision:

4. Time and value:

6. Concerns, risks, and fears:

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