5 Top Royalty Management Mistakes

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PowerPoint Presentation5 Top Royalty Management MistakesIgnoring the costs of poor royalty managementImplementing a royalty management system requires an upfront investment. Too often, companies fail to weigh the cost of a new system against the dangers of overpaying or underpaying royalties, or the risks of litigation over royalty disputes.#2Solution: #Assessment of the litigation and reputational risks of existing royalty management practices.12Clear cost-benefit analysis of poor royalty management. #Lack of management buy-inAdopting a new royalty management system is about human capital as much as software. Without proper support, poor implementation will create additional costs and delays, and damage employee confidence in the new system.#Solution: #Buy-in at the executive level and visible support for implementing a new system. 12A team dedicated to resolving issues with the new system as they arise. #Dependence on custom softwareCustom software has critical disadvantages:Maintenance costs more and requires greater IT supportMore external support required for updates Custom software is harder to adapt if needs change#Solution: #A royalty management system with a configurable, modular structure that offers built-in flexibility. 1#Too much ownership on ITWhen too many high-level functions of the royalty management system require the intervention of IT to implement, the result is bottlenecks, frustrations, and delays.#Solution: #Put high-level control into the hands of business users12Have a simple, intuitive interface that make customization easyThe system should:3Give business users the ability to modify fields, calculations, definitions, and drop down lists#Lack of phased implementationSoftware implementation is never a once-and-done job. Imposing a new system on all employees, without time to get early adopters excited, take feedback, or iron out early issues, guarantees trouble. #Solution: #Phased implementation, with time for reflection, training, feedback, and internal marketing, instills confidence in both the software and the process, and makes employees feel included in the project. 12Early training should focus on employees who are likely to become internal advocates for the new system. #For more information about royalty management, visit us at fadel.com#