The value of the manager in the value chain

Purpose – It is argued that the management of the diverse commercial imperatives of the participants in the value chain is partly achieved by negotiation. Seeks to describe the mechanism by which negotiation achieves satisfactory outcomes, capturing ome of the strategic financial impacts by the cash conversion coefficient and its derivative, the velocity of money. Design/methodology/approach – An analysis of the ways in which negotiation contributes to the mutual benefit of partners in the value chain. Findings – It is demonstrated, using the metric of money, that both parties can be better off, and shows the “value” they bring to the partnership. Originality/value – A demonstration of why market‐based, negotiated outcomes leave both parties to a transaction better off. Inter alia introduces the concept of the velocity of money in an industrial context.