MANAGEMENT ARTICLES

 

We Get What We Deserve.

(Peter Frans - Managing Partner - Trimitra Consultants)

 

Have you ever seen the advertisement for negotiations skills seminar that reads: "In business, you don't get what you deserve, you get what you negotiate."?

I never liked that phrase to begin with and now there is a "groundbreaking"  book out with almost the identical title! So what is my problem? Am I knocking a concept that has drawn many professionals to the seminars and has had many companies putting it on in house?

Well, there are probably many good points made and considerable information provided for those who participate, but I simply object to the tone of the advertising. I object to the overall premise that negotiating skills and techniques are the "keys to success in business and life."

I believe that professional procurement today is about building strategic relationships with those suppliers and supply chain partners who can contribute to your organization's success as you contribute to theirs. Somehow it seems that if one must count on using these negotiation seminar strategies, techniques, tactics and tips to deal with suppliers then strategic relationships may never get off the ground. Suspicion and mistrust will be built from the very early beginnings.

The negotiation seminar advertising uses the term of "win-win" throughout their narrative. If the training is really about win-win negotiating between customers and suppliers, why in topics such as "escalating authority" are there references to "the opponent?" Does win-win apply to a situation in which the parties view themselves as opponents? For example, if you are having a serious personal relationship and begin considering marriage, would you think of your intended as "the opponent" in this deal?

Can you get a better deal at the altar if you apply your negotiations training to the contractual obligations? (Of course, with the increased use of pre-nuptial agreements, maybe this negotiation stuff is needed to get what you deserve!). If one thinks of serious business relationships as more personal in this way, then the training pitch seems less appropriate.

In another advertisement, they refer to the success that class participants had when they used their training to negotiate great personal deals on their cars. Are we to believe that we should deal with our organization's key suppliers in the same manner as we haggle over big ticket purchases at home? It's time for procurement professionals to reflect on just what we should really accomplish when we deal with vendors.

The best business relationships, supplier to customer, are really no more than an extension of sound, personal relationship building where honesty and trust are the foundations for the future. Can't trust your supplier to hold up to that standard? Then maybe it is the wrong supplier! Or maybe we have to explain better how to do business in the future.

If you know exactly what you want from a supplier (i.e., you've done your research), then tell them what you need. Trust them to tell you what they can and cannot do. If the deal works, get it done and don't sweat the small stuff. It's the relationship building that is important, not the nitpicking negotiating tactics. More often than not, a good supplier-customer relationship will provide benefits over time that never would have been imagined when the initial "negotiation" occurred.

What comes to my mind is the best supplier agreement I've seen to date- two pages with no terms or conditions but only a listing of shared values between the customer and the supplier that should prevail in all future activities together. The agreement was signed by the key players (and executives) at each company and went on to support years of successful, profitable results for both parties in the marketplace.

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