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What is Commercial Leadership?

The capability to set commercial direction, allocate authority and resources, resolve trade-offs and govern execution.

Commercial terminology
Governance & LeadershipCommercial LeadershipRevenue systems

Understanding Commercial Leadership: Definition and Commercial Context

The capability to set commercial direction, allocate authority and resources, resolve trade-offs and govern execution.

In commercial practice, commercial leadership should be understood in relation to the organisation's wider operating environment rather than as an isolated tool or departmental activity. The precise application depends on the business model, organisational complexity and the responsibilities assigned to different teams.

For example, an organisation reviewing commercial leadership should identify the responsible roles, the relevant processes and information, the decisions being made, and the evidence used to judge whether the arrangement works as intended.

Commercial Architecture examines strategy, people, process, technology, data and governance together. Commercial Leadership should be considered in the context of those interdependencies and the revenue-system capabilities it influences. Governance of one capability alone does not establish that an organisation has a fully Governed Revenue System.

The term may also be used differently in other professional disciplines; context should be made explicit.

Related terminology

Commercial GovernanceDecision RightsCommercial Accountability

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