Why a Memorandum of Understanding is Critical to Your Project’s Success

Transcript:

In the beginning of a partnership when everyone is excited about the potential outcome of a project, people will say or do whatever it takes to get things off the ground because they’re all very eager and willing to work together.

However as the romance of the new venture wears off and the real work kicks in, people with even the best intentions may find that things were never very clear about how the project was supposed to work or they have different recollections as to the details of the agreement like who is supplying or bearing the cost of materials, who’s responsible for which actions even worse two people may make it to the end of a project only to realize that they disagree about how the fruits of their labor are being divided or maybe the project folds early because they hit the wall with an unexpected problem they hadn’t thought through in the beginning.

When everything is fair weather people often feel that at written agreements are unnecessary, however when conditions change and expectedly people wish they had written things down so that they would either have a plan they could stick to, to see them through or at the very least have some evidence to back them up in a disagreement.

In the heat of the moment it is so easy to get swept up in the excitement of a deal, make a verbal agreement and hop right to getting things done. No one wants to dampen the romance of the possibilities by ironing out how the nitty-gritty details are realistically going to work.

However and pulling all those details together for your MOU and laying out how it all realistically goes together in order to make it clear for your agreement, you’re going to get a good hard look at realistically how your project is going to work.

You’ll see if there’s any kinks in the system and overall, you’ll see if your project truly is realistic.

You’ll be able to catch problems and work them out early on you’re really going to be doing yourself a favor and saving yourself a lot of time money and heartache by getting certain of where you stand about all this from the beginning.

Also because other people will know they stand and that everything is on the open your team will have a higher level of trust of you and your project will be more stable and have the solid foundation you need to succeed.

This is why we recommend that anytime you’re starting a project or venture with another party whether that be an individual or an organization you take the time to write down at least the basic details of the agreement.

A Memorandum of Understanding or MOU is a fantastic tool to do this, so we’re going to go into some more detail about what they are and how to use them in this video series.

I also suggest you go to www.moutemplates.com for lots of other great information and tools to create your own Memorandum of Understanding.