In a previous blog, we explored the market trends impacting B2B business negotiations and determined there were two main themes from these trends. The first of these being: Procurement - undervaluing suppliers.

The way organisations buy has become more sophisticated, so more companies have introduced professional procurement managers into their negotiations with suppliers. In today's business environment companies must pull every possible lever to improve profits, so getting a price reduction on a product or service is the easiest way to reduce costs. On face value getting cheaper prices seems an appropriate approach, however, we challenge that paradigm.

Market Trends Impacting B2B Business Negotiations

There are a few relentless market trends impacting how B2B companies do business. These market trends are long-term and impact the top and bottom lines of B2B companies around the world.

1. Customer Consolidation

2. Centralisation of Decision Making

3. Different Decision Makers

4. Increasing Competition

All of these market trends are making it harder to keep, win and grow customers profitably. What does this mean for your organisation?

Agility is a state of mind

Spend a moment thinking about the messages you received about winning as you were growing up. Think about sport, study, games, finances, and career. Think about your friends’ attitudes to these activities too. It’s probable that most of you are conditioned to think that winning, in any competition, is the most important part of the game.

Negotiation, Stephen KozickiStephen Kozicki25 August 2016Negotiation, Agility, Value, Win-Win, People Issues, ACU, Substantive IssuesComment

What's in your negotiation toolkit?

Managers in today’s complex business environment require negotiation skills for business success. They need to develop a toolkit of negotiation strategies and understand how these influence and are influenced by their surroundings. Being successful in leading groups and shaping group decision making is vital, both internally and with key customers and suppliers.

Negotiation, Stephen KozickiStephen Kozicki18 August 2016Negotiation, Value, Business Relationships, Substantive Issues, Creativity, B2BComment

Cultural differences in negotiation - Build relationships!

Over the past 25 years I have enjoyed working with individuals and teams on live negotiations in Singapore, Malaysia, Hong Kong and China.

Cultural differences in negotiations tend to occur because we overlook or ignore small differences that can be amplified into major issues.

Negotiation, Stephen KozickiStephen Kozicki21 March 2016Negotiation, Guanxi, Relationships, Cultural, China, AgilityComment

Karma and Negotiation - Good or Bad!

At the end of a failed negotiation too many people blame bad karma for the result. Often they failed because they got to the negotiation table too quickly. The rush was to negotiate, where it should be to prepare.

Negotiation, Technology and Success!

Clearly in most negotiations involving technology it is becoming harder for negotiators on the supply side to show the strategic value of the technology to organisations on the buying side.

Clarity is required not around the features and benefits, but around the value piece.

Do you Frame Your Communication for Negotiation Success?

All of us have been in a negotiation that has ended with a much better outcome and greater satisfaction than predicted with the result based on how well we communicated with the other person. I have the great privilege of working on 'live deals' all over the world and get observe many great negotiators.

My research observations in these live scenarios would suggest quite strongly that the way a negotiator 'frames' their communication has a direct and substantial impact on the outcome of the deal.

Negotiation, Stephen KozickiStephen Kozicki11 September 2015Training, Communication, Frames, Consulting, Negotiation, Framing, Bargaining, Cooperation, CompetitionComment

Negotiation, Sugar and Focus!

Recently, I worked with a team on a live negotiation with a private hospital. The deal was for medical supplies and drugs worth about $25 million a year for a three-year contract.

During the preparation I noticed two behaviours in the team. First, team members could not focus on preparation. The culprit being constantly handling their smart phones. Second, how quickly the team’s energy levels dropped during the day.

Stop and Think [The Flood, the bridge, the helicopter and a hat stand.]

You will at times have problems with your major accounts or an issue will arise at a critical negotiation; re-think your approach and frame your response in possibilities and not what can’t be done.

Prepared Negotiators are problem solvers. Do you look for solutions!

We went from Australia to New York, Krakow, Warsaw, Paris, London, Dubai and then back to Sydney. The preparation for 5 people to travel that distance in a month was extraordinary.

However, it also meant that as problems arose, as they did, we were able to change our mind quickly, because of the preparation. Often working on live negotiations the more we prepare, the more we play with ‘what if’ possible solutions. The more we role play, the more we test possible ways of dealing with problems. This means that we can start negotiations not focused on stated positions, but examining the common ground that exists between all parties. We become a problem solver and solutions happen quicker.

The Agile Negotiator!

Farm life has many lessons for the agile negotiator. As some of you know, my wife, 3 daughters and I own a farm 2 hours of north of Sydney in the beautiful Hunter Valley. It is a lifestyle farm of nearly 13 acres, river frontage and a handmade timber and mud-brick house. A great place to recharge and reflect on life. It also helps to have one of the most popular vineyards in the Hunter Valley, Camyr Allyn, http://www.camyrallynwines.com.au/ just up the road.

Negotiators need to be agile and adaptive in 2015

I have been approached a couple of times in the last couple of weeks for information on where clients can attend public programs on Negotiation. We are pleased to announce we are now presenting these programs through UTS.

Fire, Ready, Aim!

Before confronting someone you want to persuade to take a different view of the world whether it’s your parents, or a key customer or supplier: take a deep breath. Most people have fallen into the speed trap when wanting to influence someone else and jumped in too quickly without really preparing their message.

Persuasion, Stephen KozickiStephen Kozicki20 February 2015Speed, Haste, Persuasion, Planning, Framing, Competitive ThreatComment

The Year of the Goat and your top accounts

Welcome, and yes we are now in the Year of The Goat and the goat comes 8th in the Chinese zodiac calendar.

Most searches of the meaning of the year of the goat is centred on people who are calm, well-mannered and live peaceful existence. The Year of the Goat will be anything but calm and peaceful for you and your strategic accounts.

The Zen of high stakes negotiation

How does one transform a sometimes hostile, high stakes negotiation into an empathic process of cooperation? That question has puzzled and frustrated negotiators for decades. A while ago, I sat down for a chat about preparing for high stakes negotiations with Stephen Kozicki, best-selling author, business educator and Australia’s leading specialist in breakthrough business strategies. How he handles high-stakes negotiations will most likely change the way you think about role-play simulation.

By Soren Malmborg

Robin Williams, Negotiation & Luck!

There are a lot of clichés around about success and luck. I often tell negotiators the better your negotiation plan, the better your questions and the better you frame value, the luckier you can be...

Strategic Negotiations must be strategic!

Too many strategic plans become yearly reviews not dynamic plans for how to compete. As Michael Porter teaches, the objective of strategy is to win in the marketplace, delivering superior sustainable performance. His convincing argument requires ...

Negotiation, Stephen KozickiStephen Kozicki7 August 2014Negotiation, Strategy, Agile, Compete, Focus, Frame, Value Proposition, Competitors, CustomersComment

As Negotiators have we lost the art of listening?

Negotiators build trust through listening

One of the great pleasures I have in working on live negotiations with senior global executives, is being able to watch great negotiators reach a successful outcome in tough circumstances. This is achieved through careful planning and a genuine connection with the other person or persons...

Stephen Kozicki, NegotiationStephen Kozicki16 July 2014Negotiation, Listening, Questions, Decision Makers, ValueComment

Fresh from Florida

Last week, Peter Browne from Gordian Business was presenting in Florida at the Strategic Account Management Association’s 50th Anniversary Conference. Peter was presenting a case study of a successful client who in a mature market grew profit ahead of their 5 year plans...