Commercial Negotiation and Agreements
Duration
2 days.
What is this course about?
We have a different commercial negotiation and commercial agreements course under our general management training courses. This one is designed to ensure that there is a proper return on investment evaluation rather than a focus on the skills involved in commercial negotiation.
Who would benefit?
- Board members
- Senior management
Objectives
- Awareness of the hidden costs in commercial negotiations and agreements
- Creation of plans to deal with those costs
- Outlining of the review processes that can be used to ensure greater cost effectiveness in commercial negotiations and agreements.
Key topics covered
- Analysis of costs involved in negotiation
- Other approaches that may be more cost effective
- What to focus on in agreements
- How to review current approaches
- How to develop new approaches
- Monitoring the approaches across the company.
Course programme
1. Analysis of costs involved in negotiation:
- Time versus return
- What are the costs - legal, timeliness, commercial, opportunity
- Understanding the return on that investment
2. What other methods might be more cost effective
- Simpler supplier relationships
- Partnerships
- Distributorships
- Frame agreements
3. The most important areas
- The objectives of the relationship
- The return on investment of time and effort
- Opportunity costs and how to evaluate them
- The exit clause
4. Review of current practice
- What is actually done - as opposed to what is thought is done
- Identifying areas that generate costs and evaluating their value
- Identifying areas that can be eliminated
- Identifying areas that need to have renewed focus
- Significant other elements of costs
- Evaluation of the return on that investment
5. Developing new approaches
- Objectives in doing so
- What can be eliminated
- What should be kept
- What should be improved
- What should be rebuilt from scratch
- Engaging stakeholders
- Communication across the organisation
- Reviewing the new processes
6. Review of the effectiveness and cost effectiveness of the commercial processes
- What to focus on
- How to judge effectiveness
- Making re-assessment a standard part of this process.
Course outcomes
- Greater confidence in dealing with negotiation
- Greater understanding of the costs involved
- Better focus on more productive approaches
- Greater confidence in dealing with the issues that arise
- Much more tightly focused contracts
- Better understanding of what win-win actually means in practice
- A better, stronger and more productive relationship between contracting parties.
