Why Contract Managers Need General Commercial Skills and Continuous Development

Jim Bergman

Contract managers play a pivotal role in ensuring the smooth operation and successful execution of contracts. While expertise in contracting skills is fundamental, also possessing general commercial skills and industry-specific knowledge can significantly enhance a contract manager’s effectiveness and impact. This broad skill set, coupled with ongoing access to relevant training and development, is essential for navigating the complexities of today’s business landscape.

The Need for General Commercial Skills

While contracting skills form the foundation of a contract manager’s responsibilities, general commercial skills and expertise provide the strategic advantage necessary to excel in the role.

Why are these skills indispensable?

  1. Holistic Understanding of Business Operations: General commercial skills enable contract managers to comprehend the broader context in which contracts operate. This understanding allows them to align contracts with the organization’s strategic goals and objectives, ensuring that agreements support overall business success.
  2. Strategic Thinking and Decision-Making: Contract managers with a strong grasp of commercial principles can make informed decisions that contribute to the organization’s growth and competitiveness. This strategic perspective enhances their ability to negotiate favorable terms, identify opportunities, and mitigate risks effectively.
  3. Effective Communication and Collaboration: General commercial skills include the ability to communicate and collaborate effectively with various stakeholders, including legal teams, finance departments, and senior management. This collaboration ensures that all parties are aligned and working towards the same goals, fostering a cohesive and productive work environment.
  4. Adaptability and Agility: The business environment is constantly evolving, and contract managers must be able to adapt to new challenges and opportunities. General commercial skills, such as financial acumen, market analysis, and project management, equip contract managers with the flexibility and agility needed to respond to changing conditions.

The Importance of Continuous Training and Development

Even the most skilled contract managers must continuously develop their knowledge and expertise to stay ahead in a dynamic business environment. Why is access to ongoing training and development crucial?

  1. Bridging Skill Gaps: As new industry trends and technologies emerge, skill gaps can become evident. Continuous training provides contract managers with the resources and knowledge needed to bridge these gaps, ensuring they remain proficient and effective in their roles.
  2. Staying Current with Industry Trends: The world of business is ever-changing, with new regulations, best practices, and market conditions constantly arising. Ongoing training helps contract managers stay current with these trends, allowing them to apply innovative solutions and maintain a competitive edge.
  3. Enhancing Performance and Efficiency: Continuous development contributes to professional growth, leading to enhanced performance and efficiency. Well-trained contract managers can handle complex contracts with greater ease, streamline processes, and make strategic decisions that benefit the organization.
  4. Fostering a Culture of Learning: Organizations that prioritize training and development demonstrate a commitment to their employees’ growth. This investment fosters a culture of continuous learning, encouraging contract managers to pursue excellence and advance their careers.

Conclusion

In today’s competitive business environment, contract managers need more than just contracting skills to excel—they require a broad range of general commercial skills and access to continuous training and development. These additional competencies enable them to understand the broader business context, make strategic decisions, communicate effectively, and adapt to changing conditions.

By investing in the ongoing development of their contract managers, organizations can ensure that their teams are equipped with the knowledge and skills needed to navigate the complexities of modern commerce. This investment not only enhances individual performance but also drives the overall success and growth of the organization.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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