On Negotiation Value Creation

Negotiation Dialogue By Osama El-kadi

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Creating a negotiation value is about thinking of the negotiator as a salesman who excels in selling the advantages of a deal to the other party.

Q To which extend do you see that it is essential for a negotiator to be able to create and claim a value? Can you give us an example in which that was the case?

A Nicely put; create negotiation value in the mind of the other party and Claiming value to one's own organisation is the whole mark of a great negotiator at work.

Thinking of the negotiator as a salesman who excels in selling the advantages of the deal to the other party is usualy what creates a negotiation value.

On the other hand, creating additional value to one's own organisation, is all about the “soft” gains that could be added to the deal to make it stunning.

A good negotiator must add value or better go and work for the organization’s post room.

Some negotiators think that an offer in writing from the supplier for example is all what they need to achieve in a negotiation.

For example, when buying key computer software to run within a customer organization core systems. Tactical negotiators will be satisfied by obtaining a larger than average discount from the supplier.

Strategic negotiator, who wants to create negotiation value for his organization, looks beyond the deal and into the future or in other words, the whole life cycle of the project and create his wish list accordingly.

It is not just about the discount when buying a mission critical software, it is about the next time you want more licenses, services, consulting and maintenance when you have very little leverage with the supplier.

The whole life cycle value of a deal is the magic word in the world of negotiation. Understanding its implication and meaning certainly differentiate top negotiators from the ordinary ones.

The opposite of creating value is also true. How can good negotiators make sure that the agreement they reached does not lose value over time.

Once again, this takes skills and experience to achieve such an aim.

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