A FTSE10 organisation had taken a strategic decision to select a critical services supplier on a global deal. The deal in principal had been agreed but significant gaps required negotiations to close the complex contract which would apply in all continents of each organisation.
Firstly, the current position was investigated to identify the key areas of disagreement – a couple of potential “show stoppers” were prioritised. The team was shrunk down to enable quick decision making on both parties. Necessary SMEs were lined up around the globe for timely input, and their requirements discussed and simplified. Extensive communications were produced to keep global stakeholders informed.
To swiftly execute the contract to limit the expansive costs expended so far to enable overdue and substantial risk to be eliminated for the buyer and revenues to be realised for the supplier.
The global contract was signed eleven weeks after Pyramis got involved, some thirty two months after the original project started. Following the global agreement execution the benefits of the deal were realised. Risk was reduced for the buyer and revenues earned for the supplier. After a long drawn out process the relationship flourished.
Negotiators of complex international contracts must realise that sometimes no deal is the worst possible outcome. Focussing on the core issues and pursuading stakeholders to see the big wins, not just the minor details is critical to avoid excessive and valueless negotiating periods. Negotiations are costly to both parties – until the deal is executed and revenues start to flow, no benefit is obtained by either party.
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Jim Willshaw (MBA, MCIPS, MIIAPS)
Jim is an experienced procurement professional acting as a consultant, speaker, coach and trainer to leading organisations all over the globe.
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