Commercial Acumen
Commercial acumen is hard to define, but a one-sentence summary might be; The informed and purposeful engagement with suppliers to deliver improved outcomes. This requires that we understand the market and the power balance between the parties. We may even understand the other party’s goals and motivations. We must plan how to engage with the market and suppliers, and execute those plans so that we comply with relevant governance. Complying with relevant governance is important but doing this while delivering better outcomes is better!
There are six elements to commercial acumen:
- Adopt an appropriate mindset
- Manage risk in a balanced way
- Understanding sources of power
- Designing processes to deliver outcomes
- Adopting appropriate behaviours
- Manage external resources effectively
Other videos that address commercial acumen include War Story #5 and War Story #12