Negotiation Training Skills Part I Of II

INTRODUCTION

Organisations are continually trying to find ways to enhance revenues and margins while reducing costs in the process. One question that is often raised is:

"How can human resource skills be developed to achieve these objectives?"

The primary objectives that are achieved by any organization can be characterised by communications with colleagues, suppliers, customers, shareholders and other stakeholders. The reality is that individuals can no longer decide whether they would like to negotiate, they can decide only how well they would like to negotiate.

One of the most available and powerful means that can accelerate the realization of your organisational growth objectives is to enhance your organisation's negotiation efforts.

WITH THE ACHIEVEMENT OF EVER-INCREASING TARGETS ON THE AGENDA, WHAT'S THE BEST WAY TO PROCEED?

The challenge is how to attain profitable revenue growth while maintaining a tight grip on expenses through quick improvements in operations.

Many organisations understand that the established growth tactics which utilized practices such as play sales, marketing and purchasing training have simply "run out of steam". This has occurred in large part due to the era of 'best practice standardisation'. Just as manufacturing organisations have embraced the carrying out of proven best practices, so organisations across the board have utilized best practices in two key areas:

• The sales environment (typically through the creation of a sales strategy that uses a formal sales methodology) and,
• The purchasing environment (typically through supply chain optimisation, strategic sourcing and supplier management initiatives).

The effect has been to level out the playing field with most organisations that deploy sales and purchasing strategies and processes that are similar in nature and design.

To attain a higher revenue & margin growth in a 'standardised' market environment necessitates means we must take a fresh approach. If utilized effectively, Negotiation Training will act as a catalyst to stimulate the continuance and entrenchment of competitive advantage.

Before we examine the best ways to use negotiation training to increase our return, it is useful to consider the reasons why negotiators often fail to achieve the best results from their negotiation efforts.

BUSINESS NEGOTIATIONS

Generally speaking, negotiators fail because they don't negotiate in a 'whole brain' way. Research has shown that our actions and communications will be most effective when they are used in a holistic, whole brain format. In the framework of business negotiations, this means that negotiators must steer their actions and communications effectively by concentrating on four core areas of negotiation:

1) Value

Business negotiators must make certain that they have an astute understanding of the facts that are the basis for any negotiation. Failure to gather & understand the relevant facts that support optimal deal making will result in a failed negotiation or negotiations where value or resources are left on the table.

2) Process

Any negotiation that does possess a vigorously defined negotiation process and lacks a management infrastructure runs the risk of a sub-standard outcome. A framework to operate in is necessary so that it can provide an environment where risks can be pro-actively managed. A robust negotiation process guarantees a positive momentum and offers al framework of reference that lessens unforeseen complications & risks.

3) Relationship

Agreements can only be completed between people or organisations that are represented by people. It goes without saying that the manner in how we interact with other people is the essential basis for a successful negotiation. Within a negotiation context, the importance of relationships is amplified when we find ourselves in an environment where ongoing partnerships and longstanding relationships results from our business interactions.

4) Vision

To achieve a collaborative or partnership agreement, it is necessary that all parties have a shared vision of the losses and benefits associated with the agreement. It is only when all parties have a shared vision of the agreement that we can understand their driving motivators or interests. A crucial part of negotiation competency entails the ability to create options that will serve the needs & interests of all parties.

World class negotiators expand their skills & competencies in each of the 4 main areas. This empowers the negotiators and allows them to deal competently in areas that would normally fall outside of their natural areas of 'preference'.

NEGOTIATION SKILLS TRAINING

Successful negotiation skills training can be implemented in two ways:

• Generic leading practice based (off the shelf)
• In house training format
• Public access format for open course training
• Vertical & customised (suited to industry & organisational specific challenges, needs & strengths)
• In house training format

The most effective negotiation skills training participation will be determined first by the defining and/or designing a negotiation strategy and supporting process. This will secure the creation of a negotiation capability at an organisational level. The outcome will be to successfully equip the organisation with a key competency in negotiation, and this will result in competitive differentiation.

The diagram below illustrates an effective negotiation skills training flow:

To ensure the maximum impact, all negotiation training programmes should cover the following primary areas:

• Individual negotiation preference & competency profiling.
• Individuals must fully understand their preferences, negotiation style and negotiation competencies in the arena of business negotiations.
• A proven comprehension of strategic sourcing and the tactics or approaches taken by buyers to negotiate purchases.
• Sales negotiation training programmes should be built upon a strong foundation of how an organization operates its procurement and purchasing functions. This is a crucial element which will make certain that negotiators are equipped with the skills to apply 'mission specific' negotiation strategies & tactics.
• Provide negotiators with practical simulations within which to learn & deploy negotiation skills.
• Research has shown that learning is hastened by a practical learning environment.
• Provide negotiators with the means to demonstrate their understanding and acquisition of new negotiation skills through a post course assessment.
• Too many training courses don't realize their objectives because they don't provide a post course assessment environment that encourages negotiators the ability to examine the skills they have acquired.
• Provide negotiators with an individual Personal Development Plan based on their demonstrated preferences & competencies.
• It is unlikely that one or even two negotiation training interventions will allow sufficient time for each delegate to fully develop their negotiation skills. It is critically important to give each negotiator with a personal development plan that will aid them in continuing the development of their negotiation skills.

To be continued...