Upon completion of this intensive course, participants will be able to:

• Align contract portfolio strategy with corporate objectives (e.g., market entry, cost leadership).
• Apply Total Cost of Ownership (TCO) and value chain analysis to contract decision-making.
• Design and negotiate contracts that incentivize partner performance and joint innovation.
• Develop and implement robust Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) tied to strategic goals.
• Master techniques for commercial negotiation, including game theory and best alternative to a negotiated agreement (BATNA).
• Structure contract frameworks (e.g., master agreements, frameworks) for scalable, long-term relationships.
• Conduct comprehensive contract portfolio segmentation based on strategic importance and risk profile.
• Implement a systematic contract governance model that ensures value realization post-award.

• Commercial Directors and Chief Commercial Officers (CCOs)
• Senior Contract Managers and Contract Management Directors
• Heads of Procurement and Sourcing
• Business Unit Leaders and General Managers
• Sales VPs and Account Executives for major accounts
• Strategic Planning and Corporate Development Professionals
• Legal Professionals with commercial oversight responsibilities

• Executive-level case studies on global contract portfolio optimization and value leakage.
• Advanced commercial negotiation role-plays using multi-variable pricing and incentive structures.
• Group activity developing a strategic contract segmentation and governance model.
• Workshops on building an effective BATNA for a complex business deal.
• Discussions on the ethical dilemmas in maximizing commercial advantage.

Unit 1: The Strategic Role of Contract Management

• Shifting from risk mitigation to value maximization in contract management.
• Mapping contract types and structures to corporate strategy (e.g., speed to market, cost reduction).
• The concept of "Contractual Advantage" and how to achieve it in competitive markets.
• Integrating contract metrics (cycle time, value realized) with organizational KPIs.

• Techniques for segmenting the contract portfolio based on risk, value, and strategic criticality.
• Developing a tiered contract management approach for high-value vs. routine agreements.
• Applying the Kraljic Matrix and other supply base segmentation models to contracting.
• Optimizing resource allocation for negotiation and post-award governance based on strategic needs.

Unit 2: Advanced Commercial Negotiation

• Employing game theory principles and behavioral economics in complex commercial deals.
• Mastering the negotiation of financial terms: pricing models, payment terms, and volume discounts.
• Advanced techniques for addressing negotiation stalemates and power imbalances.
• Structuring performance-based pricing and gain-sharing incentive mechanisms.

• Understanding the strategic use of contractual clauses (e.g., exclusivity, termination, benchmarking).
• The importance of non-contractual leverage (market alternatives, relationship history).
• Techniques for building a robust Best Alternative to a Negotiated Agreement (BATNA).
• Negotiating global framework agreements and master service agreements (MSAs).

Unit 3: Post-Award Value Realization and Governance

• Designing outcome-based contracts that link payment to realized business value.
• Developing effective Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) for strategic contracts.
• Structuring remedies, penalties, and performance bonuses to drive desired outcomes.
• Utilizing supplier performance scorecards and collaborative improvement mechanisms.

• Defining and establishing a collaborative contract governance structure (joint steering committees).
• Techniques for managing relationship friction and resolving commercial disagreements without legal escalation.
• The importance of contract data analytics in identifying value leakage and underperformance.
• Strategies for managing contract renewals, exits, and re-tendering decisions.

Unit 4: Financial and Digital Integration

• Applying Total Cost of Ownership (TCO) and Net Present Value (NPV) to contract evaluation.
• Understanding the impact of contract terms on the organization's balance sheet (e.g., CapEx vs. OpEx).
• Techniques for commercial benchmarking and market testing contractual rates.
• The role of contract managers in revenue recognition and financial compliance.

• Utilizing Contract Lifecycle Management (CLM) systems to track strategic KPIs and risk.
• The application of AI and machine learning for commercial insight and opportunity identification.
• Developing a data model for measuring contract value realization over time.
• Implementing digital tools to standardize complex commercial terms globally.