January 8, 2024

RE-NEGOTIATE BUSINESS AGREEMENTS NOW!

Times change. What once made good business sense, now no longer works. Effective negotiators are now reviewing past negotiations and agreements to determine which need to be re-negotiated to bring them back into balance.

In the Karrass Effective Negotiating seminar we discuss what we learn from various cultures around the world. Re-negotiating is a central premise in the Asian culture – China in particular. When a Chinese organization makes an agreement, it usually is an agreement ‘for now.’ The agreement simply paints a picture of a fixed point in time -- today. As things change, the Chinese expect the agreement to change, regardless of what is written on the paper called ‘the contract.

Think about it. This makes a lot of sense. It is a very practical approach you should take into your negotiations.

Over time, facts and knowledge change. You now know more than you did when you made the agreement. Use this knowledge now to make it a better business agreement.

Negotiating pressures, power and expectations also change over time. How does this impact your business agreements? What needs to be changed now to bring the agreements back into equilibrium?

It is a wise negotiator that builds contingence plans into all of their agreements.

Relationships change. Hopefully you now know the other party much better than you did when you made the initial agreement. How does this impact your ability to re-negotiate a better agreement for both sides?

Today most of us face a tough economy. Costs have changed; now is the time to re-negotiate prices and terms. The original ‘work sharing’ formula for your teaming agreement is not actually happening it is time to re-negotiate. Changes and modifications need to be made to existing agreements to enhance value for both parties.

It is important you survive and continue to prosper. Your success depends on your skill and ability to negotiate to keep existing agreements in place, and when necessary, to re-negotiate profitable alternatives.