|
|
Using Negotiation Skills To Make Sure Complex IT Deals Do Not Fail To Achieve Maximum Value
Formal research into business negotiations discovered that the top challenges faced by businesses and individuals are (a) the price/value trade off and (b) developing 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 they did not close transactions.
There has been much talk in the IT sector on both the buy- & sell side about 'partnering' to deliver solutions. Looking at the supporting data, it is doubtful 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 landscape. This is due in large part to the failure of individuals to see the 'big picture' or to engage in creative thinking. Our research & experience demonstrates that one of the critical 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 restricted to the design & engineering departments. One of the main drivers of human behaviour is the tendency to avoid potential deficits. When assessing 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 transactions, the focus is more often on managing risk to avoid potential deficits, rather than on discovering innovative and creative ways to create additional value for all stakeholders.
The more complex the transaction, the more important it becomes to control risk. Rather than just trying to avoid deficits, we should actively focus on methods to invent alternatives for mutual benefit 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 stakeholders to the deal that will be satisfied by achieving an agreement?
b. How critical will it be for each party to the deal to act in a mutually beneficial mode?
2. Value
a. What are the specific 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 validate through questioning during disucssions?
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 the same desire 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 to be initiative. Being creative is not something that comes easily to all 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 approach that delivers optimal value, you should waste no time in getting the creative juices flowing.
Negotiation Skills Training: Getting Ready For And Dealing With Complex Commercial Negotiations Using 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.
Management Coaching - A Effective Way To Coach Your Manager To Make Him/Her Highly Capable
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.
Executive Coaching Training Can Lead Your Enterprise 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 - A Money-Making Profession
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.
Management Coaching - How To Give Your Business An Advantage Over Your Competitors
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.
Importance Of Management Coaching To Improve Employee Performance - Factual Experience Needed
Many companies hire managers for no reason other than that they have managed people before, in some capacity at some point, and are therefore assumed to know what they're doing
Project Management Programs: A Factual Management Topic You Require
Project management training entails training the personnel to work on and manage each aspect of a project so that all resources can be applied to the maximum extent. To manage a project, project management tools can be used by the project manager.
Developing 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?
Administration Trainers Can Help 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.
|
More Articles
Blogroll
|
