Formal research into business negotiations discovered that the biggest challenges faced by organisations and individuals are (a) the price/value trade off and (b) developing alternatives/generating options, respectively. A recent Fortune Magazine review in affiliation with Miller Heiman (the complex selling methodology gurus) found that sales resources quoted price as the number one cause they did not close transactions.
There has been much talk in the IT sector on both the buy- & sell side about 'partnering' to produce solutions. The supporting data shows, it is doubtful whether this talk has translated into action.
Whilst most organisations would like to believe that they are interacting with both clients & suppliers in a 'solution based' format, the role of price still governs the landscape. This is due in large part to the failure of individuals to see the 'big picture' or to get involved in creative thinking. Our research & experience shows that one of the vital features of successful business negotiators is the skill to be creative & flexible.
Whilst many IT organisations have built their reputations on the back of their market leading and creative technologies, it would seem that creativity is often restricted to the design & engineering departments. One of the main drivers of human conduct is the tendency to avoid potential losses. When considering information about the future, managers are more interested in avoiding possible deficits than realising the same gains. This means that during negotiations that support difficult and high value IT transactions, the focus is more often on managing risk to avoid potential deficits, rather than on creating innovative and creative ways to create additional value for all parties.
The more complex the transaction, the more vital it becomes to control risk. Rather than just trying to avoid losses, we should concentrate on methods to invent alternatives for common gain during negotiations.
To avoid falling into the price trap, ask yourself the following questions ahead of each negotiation and make this part of your negotiation strategy:
1. Vision
a. What are the key interests of all the stakeholders to the transaction that will be satisfied by reaching an agreement?
b. How critical will it be for each party to the deal to perform in a partnership mode?
2. Value
a. What are the specific objectives of all the parties to the deal?
b. What are the limits associated with each of the objectives for all parties?
3. Process
a. What suppositions have you made that you could validate through questioning during disucssions?
b. How can you frame the negotiation so as to contribute to a collaborative, partnership based approach rather than a price centred negotiation?
4. Relationships
a. Do all parties have a similar desire for a lasting relationship?
b. How can you impact the 'climate' of the negotiation so as to support a collaborative approach? ('Climate' pertains to non-verbal, physical and cultural aspects.)
Once you have covered these simple elements of preparation you will have time to be initiative. Being innovative is not something that comes naturally to all of us but it is an important negotiation skill. Use one of the recognised creativity methodologies such as De Bono's Six Thinking Hats, or the Disney Creativity Model to help you generate options.
If you want to really embrace a partnership approach that delivers optimal value, you should waste no time in getting the creative juices flowing.
Negotiation Skills Training: Preparing For And Getting Involved In Complicated Negotiations Utilising Best Practice Preparation
Do you often find it hard to understand all the issues & interests of the participants involved your commercial negotiations? A lot has been written about how to handle complex negotiation scenarios - unfortunately most content is generically focused and does not address the needs of business negotiators.
Online Management Courses Are The Way To Success
Never before has it been possible for a person to earn a degree without stepping foot into a classroom. As a result of the Internet, people are earning management degrees online and then managing businesses as well.
Project Management Coaching: Why This Is Important For All Managers?
Organizations have taken significant steps implementing project management training initiatives. Project management coaching refers to practical, hands-on experience for project managers in learning the principles and practices that lead to effective and successful project management.
Professional Management Program: Crucial For Busy Managers
Most employers see professional management coaching as a valuable resource for employees. Many organizations will pay for coaching, or reimburse costs once sessions are successfully completed. This is also valuable to the manager, as it will increase an individuals marketability but does not cost the manager out of pocket.
Management Coaches Are A Magnificent Management Solution: A Fantastic Approach To Climbing Up The Corporate Ladder
Another option many managers are choosing are employing the help of management coaches. Coaches are most often experienced managers with practical knowledge. Because these coaches are already successful in the business world, many of them have valuable contacts to utilize.
Performance Coaching And Management Basics: 5 Key Management Performance Secrets For Achieving Your Aim
Everything we do in life, whether we realize it or not, is aimed at achieving some type of goal that we have. It's also like that in the business world - performance management is the method by which business owners and operators meet their business goals.
Creating A Business Plan
Developing a business plan is very important, and the importance of a business plan is undoubtedly questioned by most business owners. What makes a business plan important? Is it worth the time that it takes to come up with business plans?
Interim Management Makes Good Business Sense
Companies seek out interim managers for a variety of reasons. Sometimes, they need to replace a project manager with a problematic track record. Other times, high management turnover rates can plunge high-ticket projects into chaos.
More Articles
- Online Management Courses Are The Way To Success
- This Type Of Management Toolbox Will Improve Productivity At Your Workplace
- Project Management Coaching: Why This Is Important For All Managers?
- Professional Management Program: Crucial For Busy Managers
- Importance Of Management Coaching To Develop Staff Performance - Factual Experience Required
- This Management Toolbox Is Going To Optimize Efficiency At Your Workplace
- This Management Toolbox Will Certainly Improve Productivity At Your Workplace
- Executive Coaching Training Can Direct Your Enterprise Onto Success
- How To Use Negotiation Skills To Ensure High Value IT Transactions Do Not Fail To Achieve Maximum Value
Partner Sites
