The 6 Myths of the Written Contract

and how to achieve breakthroughs with the Psychological Contract.

Organisations invest a significant amount of money in developing and negotiating written contracts and then put them in a drawer. As a business investment decision, the return on that investment is dubious.

Written by global thought leader Sara Cullen and associate Jay Jeong, the new Open Windows Software white paper challenges six of the common myths of the written contract and explains how to achieve breakthroughs with the psychological contract.

Many believe that the value of the written contract is its ability to keep us away from the courtroom. However, a contract’s primary purpose today is not so much a litigation instrument, but a commercial one. It is used less as an instrument of war; it is a business instrument used to inform, guide, and support the parties during its term.

With this in mind, writing better contracts designed with contract management in mind is certainly required. But equally important is understanding and working with a different sort of contract – the Psychological Contract.

The psychological contract (PsyCon) is the perception of the promises and obligations that individuals hold in their minds. People not know contracts word-for-word and clause-by-clause; they work off the ‘vibe’ – using the written contract only when they believe it is needed. Their vibe is based on their PsyCons, for which the fulfilment or breach has a significant effect on the attitudes and behaviours demonstrated. It is these mindsets and conduct that ultimately makes a contract, and the relationship, work.

So how do you identify, establish, and maintain a constructive PsyCon amongst your people, as well as people in both parties? In this white paper, Dr Cullen and Jay Jeong explain specifically how this can be done, so that you can break through the myths surrounding the written contract and achieve much higher returns on investment.