A recent study into business negotiations discovered that the biggest challenges faced by organisations and individuals are (a) the price/value trade off and (b) creating alternatives/generating options, respectively. A recent Fortune Magazine survey in affiliation with Miller Heiman (the complex selling methodology gurus) found that sales staff cited price as the number one cause why they lost deals.
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 questionable whether this talk has converted into action.
Whilst most organisations would like to think that they are engaging both clients & suppliers in a 'solution based' format, the role of price still governs the process. 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 main characteristics of successful business negotiators is the skill to be creative & flexible.
Whilst many IT businesses have built their standing on the back of their market leading and creative technologies, it would seem that creativity is often limited to the design & engineering departments. One of the main drivers of human conduct is the tendency to avoid potential losses. When contemplating information about the future, managers are more interested in avoiding potential deficits than attaining the exact same gains. This means that during negotiations that support difficult and high value IT agreements, 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 agreement, the more important it becomes to control risk. Rather than just trying to avoid deficits, we should actively focus on methods to create 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 main motivators of all the stakeholders to the deal that will be satisfied by achieving an agreement?
b. How important will it be for each party to the deal to perform in a partnership mode?
2. Value
a. What are the key purposes of all the parties to the deal?
b. What are the boundaries associated with each of the objectives for all stakeholders?
3. Process
a. What suppositions have you made that you could confirm 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 requirement for a long term relationship?
b. How can you impact 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 included these simple elements of preparation you will have time left to be initiative. Being innovative is not something that comes naturally to most of us but it is an essential 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 create alternatives.
If you want to really embrace a partnership method that delivers optimal value, you should waste no time in getting the creative juices flowing.
Executive Coaching Training Can Drive Your Business Onto Success
There is substantial evidence to prove that the productivity of many businesses has increased considerably due to proper executive coaching training programs.
Project Management Training, An Integral Process To A Profitable Organization
Project management can be broadly classified into project planning and managing the project as per the plan. Good project management training should include sessions on resource planning, risk assessment methodologies, estimation techniques, resource management, schedule preparation and tracking.
You Can Achieve Success With Online Management Courses
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.
Management Coaches Are An Excellent Management Solution: A Great Approach To Climbing Up The Company 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.
Project Management Training: Why It Is Critical For Professional Improvement Of Both Beginner 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.
The Key Negotiation Skill Of Setting Effective Objectives For Your Commercial Negotiations.
How to prepare effectively for successful negotiations by carefully considering the key objectives that both you and your counterpart would like to achieve so as to see whether an agreement is possible or not.
Negotiation Skills Training: Getting Ready For And Dealing With Complicated Commercial 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.
IT Project Management Benefits Advanced Tools
The major source for the standards and techniques of IT project management and all other project management methods is the Project Management Institute (PMI), the main certifying body for project management professionals and clearinghouse for training programs and information in the field.
Specialist Management Program: A Must 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.
Other readings
- Negotiation Skills Training: Getting Ready For And Dealing With Complicated Commercial Negotiations Utilising Best Practice Preparation
- Management Trainers Can Help You Stay Current With The Most Modern Technologies
- IT Project Management Benefits Advanced Tools
- Specialist Management Program: A Must For Busy Managers
- How To Use Negotiation Skills To Ensure High Value IT Deals Do Not Fail To Deliver Maximum Value
- How To Use Negotiation Skills To Make Sure High Value IT Transactions Do Not Fail To Achieve Optimal Value
- Management Tools - An Effective Tool Set For Successful Project Execution
- A Guide To The Project Management Body Of Knowledge: Necessary And Component For All Business Owner !
- A Guide To The Project Management Body Of Knowledge: Important And Component For Every Business Owner !
- A Guide To The Project Management Body Of Knowledge: Crucial And Element For Every Business Owner !
- Performance Training And Management Basics: Five Key Management Performance Principles For Attaining Your Purpose
- Performance Training And Management Principles: Five Main Management Performance Techniques For Attaining Your Target
- Performance Training And Management Fundamentals: Five Main Management Performance Principles For Achieving Your Objective
- Project Management Training: Why It Is Critical For Professional Improvement Of Both Beginner And Experienced Managers?