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Prepare for Negotiations More Effectively

Better preparation leads to better outcomes.

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Contributors

3 anonymous contributors

Your Challenge

  • IT budgets are increasing, but many CIOs feel their budgets are inadequate to accomplish what is being asked of them.
  • Eighty percent of organizations don’t have a mature, repeatable, scalable negotiation process.
  • Training dollars on negotiations are often wasted or ineffective.

Our Advice

Critical Insight

  • Negotiations are about allocating risk and money – how much risk is a party willing to accept at what price point?
  • Using a cross-functional/cross-insight team structure for negotiation preparation yields better results.
  • Soft skills aren’t enough and theatrical negotiation tactics aren’t effective.

Impact and Result

A good negotiation process can help:

  • Maximize budget dollars.
  • Improve vendor performance.
  • Enhance relationships internally and externally.

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should create and follow a scalable process for preparing to negotiate with vendors, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

1. Before

Throughout this phase, the 12 steps for negotiation preparation are identified and reviewed.

Guided Implementations

This guided implementation is a twelve call advisory process.

Call #1 - Establish and categorize goals; develop negotiation ranges.
Call #2 - Discuss alternatives and how they impact the negotiation.
Call #3 - Identify and evaluate assumptions being made by the parties.
Call #4 - Discuss critical research components and sources.
Call #5 - Identify key relationships that help and hurt your negotiation.
Call #6 - Discuss the two-team approach to negotiating and how to utilize it.
Call #7 - Identify and assess the leverage of each party.
Call #8 - Review timeline questions and the impact the answers have.
Call #9 - Develop a strategy based on the 16 key factors.
Call #10 - Draft an agenda to implement your negotiation strategy.
Call #11 - Develop sound questions and answers to preserve leverage.
Call #12 - Review tips and best practices for rehearsing before the negotiation.

Onsite Workshop

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Book Your Workshop

Onsite workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost onsite delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: 12 Steps to Better Negotiation Preparation

The Purpose

  • Improve negotiation preparation.
  • Understand how to use the Info-Tech Before Negotiating Tool.

Key Benefits Achieved

  • A scalable framework for negotiation preparation will be created.
  • The Before Negotiating Tool will be configured for the customer’s environment.

Activities

Outputs

1.1

Establish specific negotiation goals and ranges.

  • Sample negotiation goals and ranges will be generated via a case study to demonstrate the concepts and how to use the Before Negotiating Tool (this will apply to each Planned Activity)
1.2

Identify and assess alternatives to a negotiated agreement.

  • Sample alternatives will be generated
1.3

Identify and evaluate assumptions made by the parties.

  • Sample assumptions will be generated
1.4

Conduct research.

  • Sample research will be generated
1.5

Identify and evaluate relationship issues.

  • Sample relationship issues will be generated
1.6

Identify and leverage the team structure.

  • Sample teams will be generated
1.7

Identify and address leverage issues.

  • Sample leverage items will be generated
1.8

Evaluate timeline considerations.

  • Sample timeline issues will be generated
1.9

Create a strategy.

  • A sample strategy will be generated
1.10

Draft a negotiation agenda.

  • A sample negotiation agenda will be generated
1.11

Draft and answer questions.

  • Sample questions and answers will be generated
1.12

Rehearse (informal and formal).

  • Sample rehearsals will be conducted
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