Archive for category Negotiation
Small Business Negotiation Strategies and Commercial Lenders
Posted by admin in Negotiation on December 6, 2011
There is possibly no better example of underutilized small business negotiation strategies than the general lack of solid negotiating practices when most business owners are working with commercial lenders. This observation is not only applicable for recent circumstances but also when looking at the past five decades or so. What has made the situation more actionable and critical for commercial borrowers is the chaotic economic climate that has resulted in a series of negative events for commercial banks and other lending sources. In short, a bad situation has been made worse because of complex factors such as shrinking bank assets, reduced sales activity and decreasing real estate values.
Whether analyzing small business communications in general or commercial lender negotiations in particular, any business owner will probably readily admit that they would like to be able to devote more efforts to improving both management functions. However as any manager must do constantly, time and financial resources need to be juggled and allocated according to a wide variety of practical considerations. It is unfortunately not as simple as realizing that there is a problem. Instead the problems will need to be prioritized, and small business solutions will be implemented in accordance with the realistic priorities that prevail for each unique situation.
Prioritizing and managing tasks and problems is realistically the first order of business for developing successful negotiation strategies to deal with commercial lenders. For example, it can be relatively pointless to assign the top priority to negotiating a new working capital management agreement with a bank (or other financing source) if that means other critical functions will be ignored for any substantial time period. When business owners begin to reflect about the delicate balance that prevails within each of their time management scenarios as part of a candid assessment of what to do first (and what can wait until last) and how much time to devote to any given activity, it often helps them to realize that they might indeed need some external help to get through their particular set of obstacles. Read the rest of this entry »
Negotiation Skills for Business
Posted by admin in Negotiation on December 5, 2011
Every time we engage in conversation with another individual we are generally negotiating a view, discussion or action. Everyone has different filters from which they perceive the world or their surroundings. These filters are developed throughout one’s life as they grow from a child to an adult. Some of the main influences that can develop one’s filters are parents, friends, family, social environment, religion, school and experience. As these filters are molded every individual brings a different view point to a negotiation or business discussion. Understanding the angle or view of an individual with whom you are negotiating is key to laying the foundation to work towards a viable solution.
One of the more widely known methods of understanding human negotiation psychology is the Thomas-Kilman Conflict Mode Instrument, also known as the (TKI). This model asserts that an individual’s behavior falls along two basic dimensions: assertiveness – the extent to which the individual attempts to satisfy his or her own concerns and cooperativeness – the extent to which the individual attempts to satisfy the other’s person’s concerns. This instrument then places an individual into five different style methods when it comes to dealing with conflict.
The first negotiation style is competing. Competing is an assertive and uncooperative, power-oriented style. Most individuals that fall into this category tend to pursue their own interests at the expense of other’s using whatever methods they can to win the negotiation. The next style is collaborating. Collaborating is both assertive and cooperative. When collaborating, an individual attempts to work with other individuals to find a solution that fully satisfies the concerns of both. It involves digging into an issue to identify the underlying concerns of the two individuals to find an alternative that meets both sets of concerns. Collaborating between two individuals can take the form of exploring a disagreement to learn from each other’s insights, resolving some condition that would otherwise have them competing for resources, or confronting and trying to find a creative solution to their conflict. Read the rest of this entry »
Basic Training for Winning Business Negotiation
Posted by admin in Negotiation on November 24, 2011
The United States government is regulated by the Federal Acquisition Regulation (FAR), which establishes current rules and regulations for acquiring goods and services. The FAR covers everything federal staff needs to buy successfully and legally on behalf of the government.
The FAR is much like an instruction manual for everything you always wanted to know about partnering with the government. In fact, instructions are included in FAR Part 15-Contracting by Negotiation- that federal staff must learn as part of their training requirements. Staff training requirements include becoming certified to represent the government’s best interests for purchases. The information is available to the public, and applies across all commerce sectors.
The Defense Acquisition University has a wealth of commerce information online that anyone can access. Its pricing guidelines cover eight chapters about negotiating. The online manual covers the exchange process and how to prepare for negotiating in detail. A special chapter is dedicated to how to negotiate when there is no competition.
Nonverbal communication also has a whole chapter devoted to it, as body language is part of the whole process. Ten rules for successful bargaining are provided, along with tactics for better bargaining.
The process of negotiating is a common commercial practice during decision-making. It can avoid disputes and lead to better partnerships. Commerce typically entails developing objectives. These objectives will help with developing a negotiation plan. Read the rest of this entry »