Commercial Management: theory and practice defines the role of commercial management within project-oriented organisations, providing a framework for and helping to develop a critical understanding of the factors that influence commercial management practice. It also identifies generic aspects of this practice and provides a theoretical foundation to these activities, by reference to existing and emergent theories and concepts, as well as to relevant management best practice.
The book is structured into four parts: Part 1 Introduction – Commercial Management in Project Environments explores the nature of commercial practice within project-oriented organisations at the buyer-seller interface. It presents a Commercial Management framework, which illustrates the multiple interactions and connections between the purchaser‘s procurement cycle and a supplier‘s bidding and implementation cycles. Additionally, it outlines the principle activities undertaken by the commercial function, identifies the skills and abilities that support these activities and reviews the theories and concepts that underpin commercial practice. Finally, it identifies areas of commonality of practice with other functions found within project-oriented organisations, plus sources of potential conflict and misunderstanding.
Part 2 – Elements of Commercial Theory and Practice covers commercial leadership; exploring strategy; risk and uncertainty management; financial decision-making; and key legal issues. Part 3 – Approaches to Commercial Practice addresses best practice management; and commercial and contracting strategies and tactics. Finally, Part 4 – Case Studies offers two extended case studies: Football Stadia (the Millennium Stadium, Cardiff; the Emirates Stadium, Islington; and Wembley Stadium, London); and Heathrow Terminal 5.
The book provides a one-stop-shop to the many topics that underpin commercial management practice from both a demand (buy-side) and a supply (sell-side) perspective. It will help develop an understanding of the issues influencing commercial management: leadership, strategy, risk, financial, legal, best practice management and commercial and contracting strategy and tactics.
This book’s companion website is at www.wiley.com/go/lowecommercialmanagement and offers invaluable resources for both students and lecturers:
• PowerPoint slides for lecturers on each chapter
• Sample exam questions for students to practice
• Weblinks to key journals and relevant professional bodies
About the Author vii
About the Contributors viii
Part 1: Introduction 1
Introduction: Commercial Management 3
1. Commercial Management in Project-Oriented Organisations 23
Part 2: Elements of Commercial Practice and Theory 77
2. Commercial Leadership 79
3. Exploring Strategy 96
4. Perspectives on Managing Risk and Uncertainty 108
5. Financial Decisions 132
6. L egal Issues in Contracting 173
David Lowe and Edward Davies
Part 3: Approaches to Commercial Practice 237
7. Best-Practice Management 239
8. Commercial Strategies and Tactics 288
Part A: Intent 296
Part B: Deal Creation 332
Part C: Execution 359
Part 4: Case Studies 379
Case Study A: Football Stadia 381
Case Study B: Terminal 5 (T5) Heathrow 455
“The book provides a one-stop-shop to the many topics that underpin commercial management practice from both a demand (buy-side) and a supply (sell-side) perspective. It will help develop an understanding of the issues influencing commercial management: leadership, strategy, risk, financial, legal, best practice management and commercial and contracting strategy and tactics.” (Construction Management and Economics, 3 June 2014)
“I highly recommend the excellent and all inclusive idea filled book Commercial Management: Theory and Practice by David Lewis, to any students at the graduate or undergraduate levels in management, commercial management, project management, educators in academia, professional commercial and project managers, business leaders, public policy analysts and anyone else interested in the theory and practice of commercial management. This book covers all of the relevant areas completely and authoritatively.” (Blog Business World, 20 August 2013)
* Commercial management covers many topics and this book provides a one-stop-shop