By noam46
Formal research into business negotiations found that the biggest challenges faced by businesses 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 reason they did not close transactions.
There has been much talk in the IT industry on both the buy- & sell side about 'partnering' to produce solutions. Looking at the supporting data, 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 dominates the landscape. This is due in large part to the inability of individuals to see the 'big picture' or to get involved in creative thinking. Our research & experience demonstrates 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 innovative and creative technologies, it would seem that creativity is often restricted to the design & engineering departments. One of the strongest drivers of human conduct is the tendency to avoid potential deficits. 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 complex and high value IT transactions, the focus is more often on managing risk to avoid potential losses, rather than on creating innovative and creative ways to create additional value for all stakeholders.
The more complex the transaction, the more vital it becomes to control risk. Rather than just trying to avoid losses, we should concentrate on ways to invent options for common 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 interests of all the stakeholders to the transaction that will be satisfied by reaching a settlement?
b. How critical will it be for each party to the transaction to perform in a mutually beneficial 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 assumptions have you made that you could validate through questioning during the negotiation?
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 the same 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 basic elements of preparation you will have time to be creative. Being innovative is not something that comes easily 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 truly embrace a partnership approach that delivers optimal value, you should waste no time at all in getting the creative juices flowing.
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Formal research into business negotiations found that the biggest challenges faced by businesses 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 reason they did not close transactions.
There has been much talk in the IT industry on both the buy- & sell side about 'partnering' to produce solutions. Looking at the supporting data, 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 dominates the landscape. This is due in large part to the inability of individuals to see the 'big picture' or to get involved in creative thinking. Our research & experience demonstrates 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 innovative and creative technologies, it would seem that creativity is often restricted to the design & engineering departments. One of the strongest drivers of human conduct is the tendency to avoid potential deficits. 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 complex and high value IT transactions, the focus is more often on managing risk to avoid potential losses, rather than on creating innovative and creative ways to create additional value for all stakeholders.
The more complex the transaction, the more vital it becomes to control risk. Rather than just trying to avoid losses, we should concentrate on ways to invent options for common 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 interests of all the stakeholders to the transaction that will be satisfied by reaching a settlement?
b. How critical will it be for each party to the transaction to perform in a mutually beneficial 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 assumptions have you made that you could validate through questioning during the negotiation?
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 the same 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 basic elements of preparation you will have time to be creative. Being innovative is not something that comes easily 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 truly embrace a partnership approach that delivers optimal value, you should waste no time at all in getting the creative juices flowing.
Hiring Interim Managers For Your Business Projects Is A Proven Strategy For Achieving Success
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.
IT Project Management Software Applications State Of The Art 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.
Business Intelligence Tools - Making Your Very Own Data Work For You
They say if you plan to fail then you fail to plan. How can you get where you are going if you don't know where exactly that is?
The Management Toolbox Is Going To Optimize Productiveness At Your Workplace
In the competitive job market it is important to make such an impression. With better credentials, better jobs are available. This is why you should familiarize yourself with the management toolbox cd set.
Management Coaching Training: Receiving External Assist For Develop Inside
It's relatively to commit to regular management coaching training sessions; anyone can do that. But for it to change your life and really transform your career, you have to have an open mind and be willing to consider the advice and opinions of your coach.
Performance Training And Management Basics: Five Key Management Performance Techniques For Attaining Your Goal
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.
Project Management Training: Why It's Vital For Career 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.
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