Commercial management
| Business administration |
|---|
| Management of a business |
Commercial management is "the identification and development of business opportunities and the profitable management of projects and contracts, from inception to completion".[1]
Commerce refer to the actions that involve the exchange of goods, services, or value between an entity and its customers, suppliers, or partners.[2] Consequently, all activities of an organization that pertain to purchasing, selling, or generating revenue are classified as commercial activities,[3][4] and must be effectively managed. Thus, commercial management plays a significant role in shaping the business landscape of an organization, using mutual cooperation to drive growth and innovation in an increasingly competitive market.The Chief Commercial Officer (CCO) is the highest official responsible for monitoring and directing the activities and growth of the organization in key areas of commercial management such as marketing, sales, supply chain and logistics, finance, product development and customer relations.[5]
The role of a commercial manager is diverse. Those who work in the commercial departments of large multinational organizations may have specialized responsibilities in sales, marketing, contracting and negotiation, finance, logistics or property management. In smaller businesses, the commercial manager will be expected to handle all of these different roles themselves, rather than overseeing a department containing a team of experts in each area.[6]
Commercial management within an organization is also applied at policy levels.[clarification needed] Commercial policies relate to the rules or practices that define how business will be conducted and the standard terms under which external relationships will be conducted. Many of these policies are reflected in the terms of any contract in which the organization engages. At a transactional level, commercial management is applied through the oversight of trading relationships to ensure their compliance with business goals or policies and to understand or manage the financial and risk implications of any variations.
Within the UK government, civil service competency includes the ability to "[achieve] commercial outcomes".[7] An "uplift in commercial and contract management capabilities" among staff in government and the wider public sector engaged in project and programme delivery has been seen as an important efficiency goal. A "Contract Management Capability Programme" was initiated in 2018 to secure training, development and accreditation in contract management, including the commercial elements of delivering government programmes.[8]
See also
[edit]- Business management
- Contract management
- Government procurement#Government Commercial Function and Government Commercial Organisation within the UK government
- Master of Commerce
References
[edit]- ^ Institute of Commercial Management, "What is Commercial Management?" Archived 2017-12-05 at the Wayback Machine
- ^ "Commerce Definition & Meaning | Britannica Dictionary". www.britannica.com. Retrieved 2024-12-03.
commerce: activities that relate to the buying and selling of goods and services
- ^ "COMMERCIAL". Cambridge Dictionary.
commercial: relating to buying and selling things / intended to make a profit
- ^ "commercial". Collins Dictionary.
- ^ "CCO (chief commercial officer)". Cambridge Dictionary.
- ^ Institute of Commercial Management, "What is Commercial Management?" Archived 2017-12-05 at the Wayback Machine
- ^ Civil Service Human Resources, Civil Service Competency Framework 2012 - 2017, update published 2015, accessed 24 November 2023
- ^ Government Commercial Function, Contract Management Capability Programme, published April 2023, accessed 24 November 2023