The structure of the supporting commercial agreement can play a big part in determining the length of negotiations. If the agreement encourages cooperation and a share in jointly generated value and benefits, then the chances of collaboration, rather than arbitration, are significantly increased.

Another must in the search for speed is alignment and sponsorship at the highest levels of both organizations. It is easier to raise the discussion if, for example, the contracting parties’ chief executives are willing and able to intervene at short notice.

If an item is material and you hit a block, then why not involve the big guns? If an item isn’t material, don’t waste precious hours trying to win the argument. Negotiations shouldn’t be taken personally. It’s not important to win every point but it is important to ensure that you keep a reality check on the size of the risk in comparison to the overall deal.

It’s better to put many of the lesser points to one side and agree on their resolution in the round once everything else is finished.

Set The Course

If things go wrong on projects (and putting the contract in place is a project), you can usually trace the fault back to the very beginning. As any good pilot will tell you, if you’re a couple of degrees off course at the start of the journey, you will end up nowhere near your destination. Spend your time and your dollar on building a solid foundation. Elaborate in detail the guiding principles of the deal and use these in times of difficulty as a checklist. Agreeing in advance what to do when you disagree during contract negotiations is a powerful tool when you’re looking to save time.

Finally, the human element is crucial. Think about the salesman who persuaded you to buy. Although some qualities are hard to quantify, the salesman who has confidence in what he does is as important as the ability to interpret needs and accurately translate them into a sale. Someone who actually listens to the customer makes a big difference to the level of trust placed in them and the speed with which a customer will make a decision. Are you being listened to?

Reprinted with permission from ABIE Source