A Value Chain Analysis will be valuable for Contract Managers preparing to negotiate. The understanding of how their organization creates value for customers and its sources of competitive advantage will result in creating stronger value propositions and more robust evaluations of offers received from third parties.
Under contract management process, negotiation involves persuading suppliers or customers to reach mutually beneficial agreements. Designing negotiating strategies and knowing how to execute the negotiating stages and phases up to closing on an agreement are core competencies for a Contract Manager with contract execution authority. Familiarity with various styles and tactics will equip a negotiator for an array of circumstances. It will be highly useful for Contract Managers to develop an effective set of interpersonal skills.