Site Search:
Using Negotiation Skills To Make Sure High Value IT Deals Don't Fail To Achieve Maximum Value
A recent study into business negotiations found that the top challenges faced by organisations and individuals are (a) the price/value trade off and (b) developing alternatives/generating options, respectively. A recent Fortune Magazine survey in partnership with Miller Heiman (the complex selling methodology gurus) found that sales staff quoted price as the number one reason why they lost deals.
There has been much talk in the IT industry on both the buy- & sell side about 'partnering' to deliver solutions. The supporting data shows, it is doubtful whether this talk has converted into action.
Whilst most businesses would like to think that they are interacting with both clients & suppliers in a 'solution based' format, the role of price still dominates the process. This is due in large part to the inability of individuals to see the 'big picture' or to engage in creative thinking. Our research & experience tells us that one of the vital characteristics of successful business negotiators is the ability to be creative & flexible.
Whilst many IT businesses have built their reputations on the back of their innovative and creative technologies, it would seem that creativity is often limited to the design & engineering departments. One of the strongest drivers of human behaviour is the tendency to avoid potential losses. When assessing information about the future, managers are more interested in avoiding potential losses than attaining the same gains. This means that during negotiations that support complex and high value IT agreements, the focus is more often on managing risk to avoid potential losses, rather than on finding innovative and creative ways to create additional value for all parties.
The more complex the transaction, the more important it becomes to manage risk. Rather than just trying to avoid deficits, we should concentrate on ways to create options for mutual 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 motivators of all the parties to the deal that will be satisfied by reaching a settlement?
b. How important will it be for each party to the transaction to act in a partnership mode?
2. Value
a. What are the specific purposes of all the parties to the transaction?
b. What are the boundaries associated with each of the objectives for all parties?
3. Process
a. What assumptions have you made that you could confirm through questioning during the negotiation?
b. How can you frame the negotiation so as to support a collaborative, partnership based approach rather than a price centred negotiation?
4. Relationships
a. Do all parties have a similar desire for a long term relationship?
b. How can you influence the 'climate' of the negotiation so as to assist in the achievement of a collaborative approach? ('Climate' pertains to non-verbal, physical and cultural aspects.)
Once you have covered these basic elements of preparation you will have time left to be creative. Being creative is not something that comes naturally to all of us but it is an essential negotiation skill. Use one of the well known creativity methodologies such as De Bono's Six Thinking Hats, or the Disney Creativity Model to help you create options.
If you want to truly embrace a partnership method that delivers optimal value, you should waste no time at all in getting the creative juices flowing.
Negotiation Skills Training: Getting Ready For And Dealing With Complicated Commercial Negotiations Utilising Best Practice Preparation Techniques
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.
Management Coaching - Providing A Management Toolbox
A good management coaching trains the manager in such a way that they become highly skilled to manage large number of people and business processes. It's like providing a management toolbox for every day management tasks.
Management Coaches Can Assist You Stay Current With The Most Modern Technologies
If you're struggling to understand and transition to the newest management technology, you are not alone. Studies suggest that up to 85 percent of managers feel overwhelmed or confused by technological change in their field.
Interim Management Implies Good Business Knowledge
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.
Management Coaching - How To Give Your Business An Edge Over Your Rivals
Many companies fall into the mistake of hiring someone who has managed people before, and assuming that, since they're an experienced manager, they don't need any more help. Nothing could be further from the truth.
Professional Management Coaching: A Must For Busy Administrators
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.
Project Management Coaching: Why It's Important For Career Development Of Both Newbie And Experienced Managers?
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.
Administration Classes Offer Hands-On Education To Built Career
Are you interested in entering the management field? Or perhaps you're already in the field, but are interested in learning about how to become the best at what you do so that you can eventually be at the top of your field. In either case, taking management classes might be an excellent idea.
Project Management Training: Why This Is Important For Every 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.
There has been much talk in the IT industry on both the buy- & sell side about 'partnering' to deliver solutions. The supporting data shows, it is doubtful whether this talk has converted into action.
Whilst most businesses would like to think that they are interacting with both clients & suppliers in a 'solution based' format, the role of price still dominates the process. This is due in large part to the inability of individuals to see the 'big picture' or to engage in creative thinking. Our research & experience tells us that one of the vital characteristics of successful business negotiators is the ability to be creative & flexible.
Whilst many IT businesses have built their reputations on the back of their innovative and creative technologies, it would seem that creativity is often limited to the design & engineering departments. One of the strongest drivers of human behaviour is the tendency to avoid potential losses. When assessing information about the future, managers are more interested in avoiding potential losses than attaining the same gains. This means that during negotiations that support complex and high value IT agreements, the focus is more often on managing risk to avoid potential losses, rather than on finding innovative and creative ways to create additional value for all parties.
The more complex the transaction, the more important it becomes to manage risk. Rather than just trying to avoid deficits, we should concentrate on ways to create options for mutual 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 motivators of all the parties to the deal that will be satisfied by reaching a settlement?
b. How important will it be for each party to the transaction to act in a partnership mode?
2. Value
a. What are the specific purposes of all the parties to the transaction?
b. What are the boundaries associated with each of the objectives for all parties?
3. Process
a. What assumptions have you made that you could confirm through questioning during the negotiation?
b. How can you frame the negotiation so as to support a collaborative, partnership based approach rather than a price centred negotiation?
4. Relationships
a. Do all parties have a similar desire for a long term relationship?
b. How can you influence the 'climate' of the negotiation so as to assist in the achievement of a collaborative approach? ('Climate' pertains to non-verbal, physical and cultural aspects.)
Once you have covered these basic elements of preparation you will have time left to be creative. Being creative is not something that comes naturally to all of us but it is an essential negotiation skill. Use one of the well known creativity methodologies such as De Bono's Six Thinking Hats, or the Disney Creativity Model to help you create options.
If you want to truly embrace a partnership method that delivers optimal value, you should waste no time at all in getting the creative juices flowing.
Negotiation Skills Training: Getting Ready For And Dealing With Complicated Commercial Negotiations Utilising Best Practice Preparation Techniques
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.
Management Coaching - Providing A Management Toolbox
A good management coaching trains the manager in such a way that they become highly skilled to manage large number of people and business processes. It's like providing a management toolbox for every day management tasks.
Management Coaches Can Assist You Stay Current With The Most Modern Technologies
If you're struggling to understand and transition to the newest management technology, you are not alone. Studies suggest that up to 85 percent of managers feel overwhelmed or confused by technological change in their field.
Interim Management Implies Good Business Knowledge
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.
Management Coaching - How To Give Your Business An Edge Over Your Rivals
Many companies fall into the mistake of hiring someone who has managed people before, and assuming that, since they're an experienced manager, they don't need any more help. Nothing could be further from the truth.
Professional Management Coaching: A Must For Busy Administrators
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.
Project Management Coaching: Why It's Important For Career Development Of Both Newbie And Experienced Managers?
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.
Administration Classes Offer Hands-On Education To Built Career
Are you interested in entering the management field? Or perhaps you're already in the field, but are interested in learning about how to become the best at what you do so that you can eventually be at the top of your field. In either case, taking management classes might be an excellent idea.
Project Management Training: Why This Is Important For Every 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.