What ‘Good Looks Like’

Although universal for any business activity, critical for the success of the value outcome in your Commercial & Contract Management is that Process, People & Tools need to be interlinked and need to be in balance with dimensions of the organisation; fit for purpose. For example, only implementing Contract Lifecycle Management doesn’t deliver the full potential of value but in contrast a full attention on the state of the art Commercial & Contract Management framework will be not efficient and value add for a small business environment.

So what are the ‘Value Creation’ outcomes examples of commercial & contract management;

Reduce the number of disputes due to not delivering according to the terms agreed And improve the customer satisfaction e.g. same pricing terms negotiated versus invoiced.
Enhance your business and your customers business to deliver rateability in cash, volume, products and services to the terms agreed, and execute hard negotiated contract triggers or renewals e.g. exit option of evergreen renewal of high level priced contract.
Ensure that your business is able to perform under the terms agreed at the expected margin/cash-flows levels, and manage risk exposures within the risk premium bands e.g. unused buyers volumes options are monetized by swapping unused volumes.
Increase momentum to close deals and avoid internal stakeholder bias and opinions on margin/cash-flows expectations and maximize the chance to close the deal in time and at expectation level e.g. fast cycle times of material deal approvals and don’t miss the opportunity.
Improve the deal development of your prospects in order to win business which meets your customer needs and your portfolio requirements e.g. propositions and alternative options are aligned with customer value perceptions and your value requirements with the appropriate terms.
Boost your business to stay focussed on simple, material and value creating portfolio of deals over the cycle with the right balance of resources and attention e.g. ensure that every deal we creates value to your bottom line over the economic cycle of your products and customers are willing to pay for.

Here is what ‘Good Looks Like’ in Commercial & Contract Management from different perspectives;

Process perspective is maximizing the business value by managing the commercial contract portfolio to meet the business strategy.
Content perspective is a value based and prioritized approach on differentiated contract for material and high risk contracts and a standard contract is provided for those not meeting the prioritized thresholds.
Tool perspective is that what we agree we are able to deliver against objective of the commercial contract and intended value generation by most efficient and effective means.
People perspective is a organisation model where skilled commercial stakeholders are working together to enable integrated end-to-end value efficiently and effectively.
Overall perspective is a focus on Continuously Improvement to keep pace with the rapid changing external and internal conditions.