How many tim in th course f a day d u find urlf ngtiting a itutin? I wuld be willing t gu that you nuntr both planned nd unlnnd rtuniti fr negotiation several tim a d, t mr ftn thn nt, you m find the t f ngtitin difficult. If you push t hrd, th dl g tr. If u’r t ft, u become knwn as a pushover.
The key t und negotiation i ensuring th rrit rh t the kind of ngtitin t hnd. Within th IT nvirnmnt, thr r many kind f ngtitin tht tk place on an nging bi; we r ntinull invlvd in negotiations with ur, rtnr, executive mngmnt, tff nd, f ur, suppliers. A a mttr of ft, th nvirnmnt within which w ngtit h become so ilid tht a generic rh to ll diffrnt kind f negotiations n lngr dlivr optimal results.
Thr are imilriti between th rh t best rti in negotiations and tht of implementing bt rti in th wrkl supported by th dlmnt f IT solutions. To facilitate the hivmnt of corporate bjtiv through ngtitin, IT drtmnt huld nidr th rtin of n rgnitinl ngtitin bilit. A in th IT environment, trtg driv r whih, in turn, drives imlmnttin nd urt.
Thi means tht a ngtitin trtg huld b dfind, a supporting ngtitin process designed nd imlmntd, nd a negotiation supporting infrtrutur tblihd to ntinuul drive the improvement f ngtitd utm whilt minimiing th l associated with sub-optimal supplier nd nd ur agreements.
T avoid the losses itd with ub-timl grmnt, it is nr t pursue a Whole Brin approach t ll ngtitin. In dditin t ngtiting in a Whl Brain mnnr, IT ngtitin rtitinr dling with suppliers huld l mwr thmlv with a bi understanding of purchasing trtg, nd the application f diffrnt negotiation styles t uit th ngtitin t hnd. Lt explore th tw concepts in a littl mr detail.
Whl Brin Negotiations
It h bn rvn that ll humn have preferences for rtin categories f tiviti within th context f understanding, intrrting and engaging in mmunitin nd ngtitin. Th Hrrmnn Whole Brin Mdl rvid a uful mthr fr undrtnding ourselves nd ur ngtitin preferences.
Figure 1: Th Herrmann Whole Brin Model
We all have rfrn fr activities contained within h of the 4 udrnt. Interestingly, less thn 3% f us hv n ul rfrn fr all 4 udrnt. Sin more thn 1 million l hv mltd th HBDI (Hrrmnn Brin Dminn Instrument) rfil, we are in a itin t monitor the trends that are f particular interest t negotiators in the IT environment. Fr intn, w know tht professional bur who represent organisations in thir ngtitin with IT ulir till hv trng rfrn for th A & B udrnt, but l f a focus n th C & D udrnt. This approach often ld t rtuniti bing mid to extract additional vlu. It l fruntl rult in too littl fu being xndd n understanding the rltinhi dnmi rulting frm different types of ngtitd agreements.
On th thr hand, w knw tht l rur rrnting IT ulir typically hv a trngr preference fr th C & D udrnt. Thi ld to them often vrlking k risks, nd hmr thir identification of th rl buin imt ffrd b thir lutin.
Th bt dvi fr n IT negotiator is t uru a Whl Brin negotiation mdl whr du ttntin nd focus i givn t activities in ll four udrnt.
- Qudrnt A Vlu
IT ngtitr mut hv an understanding f th facts tht undrin n ngtitin. Filur t gthr nd understand the rlvnt facts tht urt optimal dl mking rult in fild negotiations, or negotiations whr vlu i lft n th tbl.
- Quadrant B Pr
An ngtitin withut a robustly dfind ngtitin r nd management infrastructure runs th rik f a l-thn-idl outcome. A frmwrk i required to provide an nvirnmnt in whih rik n b proactively mngd. A rbut negotiation r nur itiv mmntum and rvid a rfrn for viding unfrn complications and rik.
- Quadrant C Rltinhi
Agrmnt can nl b concluded btwn rgnitin represented by l. Th w w intrt with thr l i critical in ngtitin u. Th imrtn of rltinhi in ngtitin is mlifid in n nvirnmnt where continued rtnrhi and long-standing relationships rult from buin intrtin.
- Quadrant D Viin
Prti t n grmnt nd a shared viin of th l and bnfit. It is nl b hving an understanding f ll rti rtiv vision tht driving mtivtr or interests n b determined. A key rt of negotiation mtn is th bilit t generate tin tht will serve th needs nd interests f ll invlvd. Purhing Strategy nd Fit for Pur Ngtitin Models
A IT xutiv ting utdin f vlubl mn resources, it is incumbent un u t ensure th rrit application of negotiation trtgi nd tti t hiv key mn bjtiv. In thi context, it i k to understand that there i a numbr f diffrnt ngtitin engagement models vilbl t us, dnding on th objectives t hnd.
Figur 2: Basic IT Purhing Cnidrtin
It wuld b unwi fr u t ngg in llbrtiv negotiations with a ulir tht is providing rdut r services t a mmdit level. Similarly, it wuld b ull unwi to ngg in highl mtitiv negotiations with ulir tht r providing u with solutions that will hv a ignifint trtgi imt on ur rgnitin.
We knw that in ngtitin, as in lif, vitim hv a tndn t bm ggrr. It thrfr follows that if we are t mtitiv in ur rh t ngtitin, w n often lv suppliers fling tht th need to rlim wht th bliv is rightfull theirs. W can recognise th mtm of a dl that was negotiated too competitively b th iu tht w ik up ubunt t closing the dl iu with rvi level grmnt, ltin nd frth. If dl are not profitable fr our suppliers, th will go t grt lngth t cut corners so th n meet their rfit objectives ftn t th detriment f thir clients wh drove t hard a brgin.
Whn we ntr int ngtitin with suppliers rviding trtgi lutin tht hv a high vlu to ur organisation, it i imrtnt tht we rt a collaborative frame for the negotiations t nur that w r able t extract mximum value frm th proposed partnership.
Figur 3: ‘Fit fr Purpose’ Ngtitin Engagement Models
In nluin, whn ngtiting in th IT environment, it i ritil for rtitinr t approach th ntir negotiation r (rrtin, nggmnt nd dbrifing) from a whl brin rtiv and to l th appropriate ngtitin trtg in urt f ur bjtiv.
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