What does a Commercial Lead and Chandler Bing have in common?

Let me answer that question by giving an example of my most common conversation when trying to explain what my job is.

Them: "What exactly is your job? You’re an accountant, yes?"

Me: "No, I'm not.”

Them: “Are you more like a solicitor or legal professional then?"

Me: "No, not that either.”

Them: What do you do then?"

Often, before I get a chance to respond, my wife or friends will interject, saying, "No one knows; he's Chandler Bing" (RIP). Even after 15 years in my line of work, my family and friends generally still have no idea what I do as a job, so let me try to elaborate once again.

Here’s what a Commercial Lead does.

I specialise in compiling and assessing the commercial viability of large-scale Government Tenders. I present this information in a well-rounded, informative, and unbiased manner. In doing so, it allows our clients' Executive Directors to question and scrutinise the costs and considerations for business approval. Ultimately, it means they can make an informed decision on whether to bid or not bid on the tender.

When compiling a Commercial Model (P&L in a simple sense), there are likely to be numerous considerations. These include payment terms, performance-related payments, implications of Transfer of Undertakings (TUPE), the supply chain in the solution, contractual agreements, specific IT requirements, ISO or contractual requirements that need costing, indexation or inflation, is VAT included in the price?, multiple Lots, price/quality split, and evaluation criteria. I could go on...

Creating a model based on the compiled information is not a simple task. It's even more challenging to assess various risks or deliverables that are beyond the client’s control. What if the expected volumes don't materialise? What happens if they fail to meet the Key Performance Indicators (KPIs) or breach the contract? Equally, what happens if they over perform against the KPIs, what if there are higher volumes. How do these factors impact on the Commercial Model?

This is where we truly add value to our client.

Every Commercial Model we create, and cost, is thoroughly stress-tested with multiple 'what if' scenarios. We assess the impact on cash requirements and profitability, and we strategise on mitigation of the solution if these risks materialise. Clients receive a fully costed tender solution, and the ability to adapt it in real life once operational. We also hand over a fully compiled Assumption pack and Risk and Opportunities register. 

That’s about half of what I do… if I’m invited back, I’ll elaborate further!

Zach Law
Transponster
Commercial Lead