5 Steps to Negotiation Success – Step 2
Posted on May 11, 2011
Filed Under Business, Entrepreneurship, Leasing, Negotiation | Leave a Comment
Negotiate when you want to be H.E.A.R.D.
This is the second in a five-part series sharing the essential steps to become a more successful negotiator.
Successful negotiators are prepared. Five steps to a successful negotiation are contained in the acronym H.E.A.R.D.
The first step was Homework. Click here to read what you need to do in this step to fully prepare for your negotiation.
Step 2 – Explore and Engage
It’s time for the meeting. You’ve done your homework. Now you need to Listen Carefully! When you CARE-FULLY, you LISTEN.
You do this by asking the right questions. Ask open-ended questions; questions that cannot be answered with a Yes or a No. Open-ended questions begin with one of the 5 Ws: Who, What, When, Where, Why. And never forget the powerhouse word: How.
Next, verify the accuracy of your listening skills. You should have been taking careful notes. Confirm that what you heard is what they meant. This technique is called “The Parrot.” You parrot back to the other party your interpretation of what you understood they said.
Successful negotiators know the power of listening, not talking. Follow the 80-20 axiom: At every negotiation step, listen 80% of the time and talk 20%. You will be a successful negotiator!
Stay tuned for Part 3 of HEARD – Assess what you know and don’t know.
Find more negotiation tips and training at www.IndependentLeaseReview.com.
How to Avoid Common Pitfalls in Statements of Work
Posted on May 6, 2011
Filed Under Business, Leasing | Leave a Comment
This article is by our guest blogger, Phil Bode, founder of Italex Network.
They go by many names – statements of work, work orders, task orders, etc. But they all have one thing in common. These documents (collectively referred to as “SOW” for this blog) are the workhorses of the contracting world. After all, the parties specify the details of their working relationship in the SOW, and the success or failure of the project hinges on the parties’ performing in accordance with the SOW’s terms and conditions.
Sounds pretty ominous, doesn’t it?
While there is not enough space here to list all the potential pitfalls associated with SOWs, I can provide you with one simple insight that will improve your SOWs immediately. . .
Before you execute your next SOW, review it from the supplier’s perspective.
Start by ignoring everything you know about the project. Otherwise, your intimate knowledge of the project will cloud your judgment. As you read through the SOW, be objectively cynical and answer one simple question: What is the minimum performance that the supplier must provide to meet its obligations under the SOW?
Your review should be based solely on what is in the SOW – not what the supplier promised during the sales process, not what the parties intended, etc.
If the supplier’s minimum performance threshold under the SOW does not match what you want the supplier to actually do, you have a problem.
For example, let’s say you want a supplier to develop a project plan as part of the deliverables under a SOW. If your SOW states, “The Supplier will work with Customer’s project manager to develop a project plan,” this is not the same as saying, “The Supplier will develop a project plan for Customer’s approval.”
“Working with” is the keystone to that deliverable and it presents a very low threshold. Luckily, by reviewing the SOW from the supplier’s perspective, you’ve identified the issue before executing the SOW, and you can fix it before it’s too late.
Bottom line: You are not safe relying on the goodwill of the supplier to perform. To borrow a term from IT, SOWs are WYSIWYG – what you see is what you get. Your SOWs must be explicit with respect to what the supplier is to achieve, provide, perform, etc. And a SOW must be read literally and with a critical eye to shore up any deficiencies before it gets signed.
Phil Bode, founder of Italex Network, is an attorney and procurement professional focused on helping customers maximize their leverage throughout the procurement process. He can be reached at phil@italexnetwork.com. Or visit www.ItalexNetwork.com
5 Steps to Negotiation Success – Step 1
Posted on March 25, 2011
Filed Under Business, Entrepreneurship, Leasing, Negotiation | Leave a Comment
Negotiate when you want to be H.E.A.R.D.
Successful negotiators are prepared. Most of us are not born as great communicators. We learn at an early age how to get what we want. By age two, a toddler knows how mommy and daddy tick and what it takes to get a cookie.
The stakes get bigger as we grow. We need to refine our old motto “I want what I want.” What we are really saying is “I want to be HEARD. Please listen to me. Respect my opinions.”
Five steps to a successful negotiation are contained in the acronym H.E.A.R.D.
This is the first in a five-part series sharing these essential steps to become a more successful negotiator.
Step 1 – Homework
Before every negotiation you should learn as much as possible about the other party. Homework occurs before the initial meeting. If you jump to the proposal stage before doing your homework, you’ll miss opportunities or leave money on the table.
Savvy negotiators check out the other company’s website, the CEO’s bio, marketing philosophy, press releases, industry magazines, blogs, podcasts, webinars and other research. Social networking tools help uncover information gold before the negotiation begins. Learn where the organization is going and how management plans to reach its goals.
During the Homework phase you determine your company’s bottom line or your walk away point. Share it with your manager or a colleague, whose role is to hold you accountable.
In 1978 singer Kenny Rogers advised us to “know when to hold them, know when to fold them and know when to walk away.” This is fabulous negotiations counsel!
Homework is the important first step to understanding the other party’s challenges and opportunities. It helps you determine how you can negotiate to achieve your goals and at the same time help them achieve theirs. It’s a win-win.
Stay tuned for Step 2 of HEARD – Explore and Engage.
Click here for a free copy of the article “7 Ways to Win Your Next Negotiation” by Dave Vagnoni. The cover story of the April 2010 edition of Counselor Magazine, it offers expert advice on how to negotiate successfully in seven different scenarios.
RSS Feed
Follow Me!
