SUCCESS – Advanced Commercial negotiation
“Advanced Negotiation is about driving VALUE into acquisition of things”
When I talk about advanced negotiation there is an assumption that it is about driving the hardest bargain, or lowering the cost in terms of spend. That is not the case. While it may be part of the overall negotiation, what I am talking about is Value.
Value can be anything of value to a client that has intrinsic value. This could be a relationship, a piece of functionality, number of professional services days. Whatever clients see as valuable to them is what we see as value. It just happens that cash tends to follow value.
The key to unlocking that value is to start with these five things nailed down:
1. What is the price I feel is the right price for this?
> Set a target and end at the target point
2. What can I see that is valuable to me?
> Identify value that the supplier has control over but is not cash.
3. Which is the supplier I want to choose?
> Then make sure you have at the very least two of these.
4. What pressure can I be put under to get this done either internally or externally?
> Then go and make sure you control your compelling event and not the supplier.
5. Finally, Plot the path to the Target.
> Make a detailed negotiation plan and execute it.
I know these things sound basic, however in the context of the detail of advanced negotiation they are all in their own right critical to SUCCESS.
Many organisations ignore the basics, citing fluidity and the motion of the deal, which in itself indicates that the negotiator does not have control of the Negotiation.