There is an abundant literature on the technical skills essential to the contract manager throughout the contract lifecycle, and a widely held popular belief that only legal or engineering profiles are ideal for the role.
At Prime Conseil we take a more open view, convinced that there is no standard contract manager profile but rather a synergy that has to be evident between technical and interpersonal skills, together with a market and client context that makes certain projects and certain corporate cultures more favourable to one style of contract management or another.
To illustrate this, we spoke with Laure Cailleaux, a former business manager who moved into contract management. In this article, Laure sheds light on the client dimension so often neglected or underestimated in contract management.
Indeed, beyond the "hard skills" essential to the contract manager's work, other skills (such as the ability to build and maintain good relationships with the various stakeholders, internal and external) are essential to the contract manager, and make commercial profiles credible candidates to become excellent contract managers.
In the lines that follow, Laure invites you to explore why the relational side is one of the contract manager's essential qualities, and why commercial profiles can stand out.
I. Relationships at the heart of contract management
Throughout the contract lifecycle, the contract manager often sits at the crossroads of a variety of interactions and negotiations, internal and external alike.
So whether it is coordinating numerous internal stakeholders (quality, HSE, sales, engineering or legal) or external ones such as clients, suppliers and other partners, the contract manager helps approvals and decisions flow smoothly in urgent situations in order to sustain the commercial relationship. To do so, the contract manager must deploy the following skills:
a. Clear and effective communication:
A contract manager must be able to communicate clearly and concisely with all stakeholders. That includes not only drafting contracts that can be understood, but also the ability to convey complex information in an accessible way. They pass on contractual messages with as much agility as diplomacy, without jostling, frustrating or offending anyone.
b. Empathy and active listening:
Understanding clients' needs and concerns is essential. Empathy allows the contract manager to put themselves in the client's shoes, fostering relationships built on trust.
c. Negotiation and diplomacy:
The ability to negotiate favourable contract terms while maintaining a positive relationship with the client is crucial. Diplomacy helps resolve conflicts and find mutually beneficial solutions.
d. Conflict management:
Disagreements are inevitable in any contractual relationship. A good contract manager knows how to manage and resolve conflicts proactively and constructively.
II. Commercial profiles: credible candidates for contract management?
The title of this section is phrased as a question; my answer is of course a resounding YES! Professionals from a sales background have the skills that predispose them to excel as contract managers. Here, in my view, are the main reasons:
a. Client focus and client obsession:
Salespeople are trained to understand and anticipate clients' needs. That client focus is a major asset when managing contracts in a way that satisfies both parties' expectations.
b. Sales and negotiation skills:
The ability to sell products or services implies advanced negotiation skills, essential when negotiating contract amendments during performance and when holding difficult negotiations where each party may be inclined to protect its margins.
c. Interest in the market:
This may sound trivial, but the "market" (that is, the virtual space where supply and demand meet) has an influence on the practice of contract management. Most commercial profiles therefore have an appetite for putting a contract into perspective against market conditions, which can help in drafting contracts aligned with economic reality.
d. Cross-functional skills:
Although the best known part of a salesperson's role is selling, the job requires an overall grasp of a project, from pre-sales and capturing the client's requirement through to project delivery and client satisfaction. It also includes building a technical and commercial offer alongside the technical and engineering teams, as well as negotiating contracts. This overall view, essential to the commercial profile, is a valuable asset for contract management.
e. Resilience and perseverance:
Salespeople are skilled at overcoming rejection and obstacles, which gives them the perseverance needed to handle contract negotiations that are sometimes long and complex.
Conclusion
The contract manager holds a crucial position within modern companies, acting as a genuine pivot between technical, legal and commercial skills. As we have seen with Laure's example, a good contract manager must excel not only in technical skills but also in the interpersonal skills that are essential to maintaining harmonious and productive relationships with all stakeholders.
We have said it often: the contract manager is neither a lawyer, nor an engineer, nor a salesperson. They are a little of all three at once, and above all they are a contract manager! It is precisely this plurality of skills and experience that enriches the discipline and creates the contract manager's added value, allowing them to have a real impact on a project's profitability and, ultimately, on a company's bottom line!