Contract Negotiations

Contract negotiations can be extremely stressful and cost/time consuming, and can carry a high opportunity cost. A key skill is to know which buttons to push and when to negotiate hard, and equally when to back off.

CONTRACT NEGOTIATIONS

An enterprise does not have to win ALL the arguments or negotiations – just the ones that count the MOST. Experience and depth of knowledge is irreplaceable in these situations (the 10,000 hours example applies). Again, the objective is to secure an advantageous outcome for the enterprise without damaging the supplier or vendor so that they are forced into unnatural behaviour to achieve an acceptable business outcome for their own companies.

Some strategies for planning successful contract negotiations should include –

Ranking one’s business priorities along with alternatives.

Knowing the difference between what one NEEDS and what one WANTS

Knowing one’s bottom line so you know when to walk away.

Defining upfront any time constraints and benchmarks.

Assessing potential liabilities and risks.

Introducing and catering for high priority items like – confidentiality, non-compete, non-solicitation, dispute resolution, or changes in requirements.

Ensuring there are mechanisms and checks for “Doing the Same for Your Vendor (i.e. Walk a Mile in Their Shoes).”

Allowing time for adequate and professional preparation – this is a vital aspect.

It is best summed up by the age-old saying of “Failing to plan is planning to fail”

Our philosophy is a win/win approach so that both parties get something from the deal being negotiated. We have decades of experience in this field, and have negotiated major contracts with all the globally recognized ICT brands (Microsoft, IBM, SAP, Oracle, Dell/EMC, HP, Software AG, Cisco, MicroFocus, CA Technologies, ESRI, SalesForce, etc.).

Grey Hair Consulting brings deep experience to this area. With years of experience of doing contract and vendor negotiations from having served on both sides of the fence as successful vendors and demanding customers, Grey Hair Consulting is uniquely qualified to add substantial value in this area, leading to reduced contract negotiation time (and corresponding cost savings), and achieving favourable outcomes for the enterprise and its strategic vendors or suppliers. We have negotiated some of the biggest deals concluded in corporate ICT in South Africa, which have resulted in Billions of Rands savings to the organisations that contracted us.

“The bitterness of poor quality is remembered long after the sweetness of low price is forgotten.”

Anonymous

CONTACT DETAILS

Bruce MacLaren

Mobile: 083-327-0233

Email: bruce.maclaren@greyhairconsulting.co.za