A recent study into business negotiations found 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 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 industry on both the buy- & sell side about 'partnering' to produce solutions. The supporting data shows, 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 process. 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 shows that one of the vital 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 strongest drivers of human conduct is the tendency to avoid potential losses. 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 agreements, 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 parties.
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 create options 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 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 transaction to perform in a partnership 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 confirm 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 a similar 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 left to be creative. Being innovative is not something that comes naturally 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 method that delivers optimal value, you should waste no time at all in getting the creative juices flowing.
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.
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.
A guide to the project management body of knowledge puts everything into perspective, with almost any business fitting the tools and processes offered. Any business will essentially hinge on the basics of initiating or start up, planning, implementing, monitoring or controlling, and finally the final closing of the processes.
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
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.
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.
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.
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.