4 Contract Lessons from Avatar
Just saw Avatar in 3D (from James Cameron, the same guy that brought you Titanic), and it’s awesome. Good story and unbelievably real graphics. And better yet, no crying teenagers like with Leo DiCaprio. Being a good nerd, I can’t help draw some lessons for you good folks out there. So here we go:
- Big Projects Are Cool, but Costly. Around $400 million kind of costly. Make sure things don’t get out of hand. In this case, Avatar will likely draw a profit (as of 3 days and the time of this article, it brought in $232 million worldwide and), so it seems like a risk worth taking. They’re cool. In the same way as with contracts, big projects cost money, but don’t let that stop you from doing it if the potential benefits outweigh the potential costs. Be visionary and ambitious. Did I mention that those are cool too?
- Believable Imagination Rules. The creativity in this film is probably unparalleled by anything out there. And that imagination is what draws you in. Yet it’s still believable. You honestly believe in flying mountains because the story explains it. (You just have to pay attention.) Creative contracts can end in better results for all sides, but make sure the imagination you bring to these contracts is believable. Have measurable evidence and cite precedents. Better yet, read Getting to Yes to learn how to persuade people.
- Quality Takes Time. Nobody (particularly Americans used to instant gratification) likes to hear this, but it’s true. The director, James Cameron, wrote the original script in 1996. 1996. That’s a while back. Sure, quality usually doesn’t take that long, but you get the idea. Patience can result in amazing things. Same goes for contracting. Whether buying or selling, patience is a valuable ally. Look at the XM-25, a weapon shooting air-bursting bullets above enemy positions. It leaves no place to hide, so it’s a nice step up for infantry firepower. However, it’s been in development since 2005 and won’t enter into general field deployment until 2012. Just imagine what new fighter jets cost.
- Recoup Your Costs. While quality is important, you’ve got to make sure you don’t end up holding a money snake – the costs can slither away and bite you. Avatar, like Titanic, will probably need people returning multiple times to see the movie in order to recover its enormous costs. Make sure your customers are lined up for the product or service by the time it’s ready to go or the money snake will get you.
Did you see the movie? Are there any other contracting lessons that can be drawn from this?