WHITE PAPER May 10, 2017

Negotiating changes

Negotiations involve change: price increase, scope of work modification, request for discount, union demands, reduction in volume, change supplier, design change, people changes.

Recession = Change = Pressure

During recessionary times negotiating change is more difficult. Both sides have more pressures and this adds to the intensity of the negotiation. TIP: Follow two important Karrass negotiating principals. Preconditioning and Acceptance Time. When you do, you will find your ‘change negotiations’ will be more productive, and you’ll be better able to preserve the relationship you’ve established with the other side.

Preconditioning — No One Likes Surprises!

As you prepare for your ‘change negotiation’ start making the other side aware of your thought process and the conditions that are causing the change. Keep the other side aware of changing market conditions impacting this decision. Preconditioning makes it easier for the other side to accept your position. They understand what is driving it and understand that you have taken time to analyze a variety of options.

Acceptance time — Allow time for preconditioning to do its work.

Allow some time between when your preconditioning messages are sent to the other side and the time you need to sit down to negotiate. If the other side hears about the need for change (price increase, downsizing, cancel a project) on the day of the negotiation, there is going to be increased resentment and resistance. You may trigger a ‘knee-jerk’ reaction that could damage both sides.

The changes you are proposing probably will impact others. The other side needs time to do their own internal preconditioning. During the process of negotiating changes, use every conversation and every meeting as an opportunity to reinforce the importance of mutual interests in your relationship.

Bragging Rights

You’ve probably been told not to brag. But in preconditioning bragging is important. Consider implementing an on-going preconditioning process. This really helps when you enter a difficult negotiation. You do this by documenting.

Document any time you do something extra that benefits the other side. Such as: provide extra help when they need it; perform beyond what was called for in the Agreement; bail them out when they make a mistake or something breaks; provide extra ordinary service; give them additional goods or services at no extra cost; lend them some extra people to help out on a project. Brag a little about these things that you do for them. Document it in a short note or email. “Glad I could help!”

Maintain your list of these ‘extras’ you have provided them and don’t be afraid to use it during your negotiation. Their acknowledgment of your extra effort helps.

THE PROGRAM WAS GREAT! MY SEMINAR LEADER AND THE STRUCTURE OF THE COURSE KEPT ME CONSTANTLY STIMULATED. I NOW AM BETTER PREPARED TO GO INTO AN IMPORTANT NEGOTIATION MEETING AND STAY IN CONTROL, WHILE FINISHING THE MEETING SATISFIED.

Deanna D.
CASE MANAGER at THE JACKSON LABORATORY

IF YOU HAVE THE TRAINING BUDGET AND TWO DAYS TO SPARE, YOU'LL STRUGGLE TO FIND A PROGRAM MORE FAR-REACHING, ON-POINT, AND INSTANTLY IMPLEMENTABLE.

Jeff G.
BUSINESS DEVELOPMENT MANAGER at THE M.K. MORSE COMPANY

EXCELLENT COURSE, BRINGS MORE CONFIDENCE IN MY ABILITY TO NEGOTIATE. I THINK THIS COURSE IS A MUST FOR ALL EMPLOYEES WHO DEAL WITH CUSTOMERS.

John S.
CHIEF ENGINEERING MANAGER at EXXONMOBIL

THIS WAS VERY EFFECTIVE WITH A STRONG FOCUS ON BOTH-WIN NEGOTIATING.

Kathleen L.
SENIOR ANALYST at BLUE CROSS/BLUE SHIELD OF MICHIGAN

THE KARRASS CLASS WAS THE SINGLE BEST TRAINING CLASS/SEMINAR I HAVE EVER ATTENDED. EVERY TIME WE DID AN EXERCISE IT TAUGHT YOU WHAT TO DO DIFFERENTLY NEXT TIME. THANKS.

Kim C.
PROCUREMENT at AMERICAN EXPRESS

THIS PROGRAM HAS GREATLY INCREASED MY CONFIDENCE AND ABILITY TO NEGOTIATE FOR MYSELF AS WELL AS MY COMPANY.

LaDonna E.
SENIOR STRATEGIC BUYER at HALLMARK

THE NEGOTIATING CLASS WAS VERY INFORMATIVE. THE INSTRUCTOR PROVIDED AN INSPIRATIONAL MESSAGE THAT CAN BE APPLIED TO EVERYDAY LIFE.

Mary S.
INTERNATIONAL SOURCING at FMC TECHNOLOGIES

WE NEGOTIATE EVERY DAY OF OUR LIVES, BOTH PERSONALLY AND PROFESSIONALLY. THIS COURSE DEFINES THE PROCESS AND PROVIDES TECHNIQUES TO ACHIEVE SUCCESSFUL RESULTS.

Phillip H.
VICE PRESIDENT at GE

PRIOR TO THIS CLASS I FELT AS THOUGH I WAS GETTING EATEN ALIVE BY INTERNAL NEGOTIATIONS WITH SALES REPS. NOW I FEEL PREPARED TO CHALLENGE WHAT THEY ARE SAYING AND BET TO THEIR REAL NEEDS.

Steve Q.
PLANNER at HONEYWELL

MANY PEOPLE FAIL TO ACHIEVE THEIR POTENTIAL BECAUSE THEY DON’T SEE THE OPPORTUNITIES TO NEGOTIATE A WIN/WIN AGREEMENT WITH THEIR COLLEAGUES. THIS CLASS IS AN EYE OPENER TO THIS DYNAMIC..

Stuart B.
CONTRACTS MANAGER at HEWLETT-PACKARD
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