1 / 18

Mastering Negotiation Leverage: The RFX Game Changer

Uncover negotiation secrets, vendor sales tactics, and RFX strategies to level the playing field, achieve fair deals, and avoid common pitfalls. The guide explores essential negotiation factors, like skills, timing, and culture. Learn techniques from award to dispute resolution.

lvillegas
Download Presentation

Mastering Negotiation Leverage: The RFX Game Changer

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The RFx Leveling the Negotiation Playing Field Stephen R. Guth, Esq. www.StephenGuth.com

  2. WHAT WE’LL COVER • A Little Bit About You • Your Worthy Adversary • Negotiation Objectives • The Great Equalizer

  3. FACTORS AFFECTING (YOUR) NEGOTIATION LEVERAGE Negotiation Skills Physical Condition Knowledge Emotional State Timing (YOU) Positional Power Culture / Upbringing Make the Deal Happen

  4. YOUR WORTHY ADVERSARY • Trained to Sell • Deal-After-Deal • Compensated to Sell • Significant Resources • Time • Will “Get the Deal” from Someone

  5. VENDOR SALES SECRETS • Influence • Leverage • Retrospectives

  6. THREE THINGS TO NEVER TELL A SUPPLIER (Survey Says…) • Schedule • Criticality • Budget • Oh yeah, and don’t give ‘em an org chart…

  7. NEGOTIATION OBJECTIVES • Equalize Leverage • Skin in the Game • Be A Good “Partner” • Get a Fair Deal • Get What You Paid For GOOD FAST CHEAP

  8. THE GREAT EQUALIZER – THE RFX • Creates Competitive Leverage • Process-based Procurement • Documents Your Needs • Communicates That You’re Professional • Explains Procurement Process • Helps To Qualify Suppliers • Makes Evaluation Easier • Serves As Historical Record

  9. RFx TYPES • Request for Information • Information gathering tool • No or limited understanding of the marketplace • Unable (or unwilling) to develop robust scope of work • Very little effort • Request for Proposal • Evaluative tool • Better knowledge of the marketplace and sellers • More time and effort • Request for Quotation • Price comparison tool • Very detailed understanding of marketplace and sellers • Focus of quantity and price (usually commodity focused) • Very little effort (but lots of knowledge needed)

  10. THE SOURCING CONTINUUM PMI and NCMA Pre-award Phase Award Phase Post-Award Phase Competitive Bidding Proposal Evaluation Price and Business Negotiations Contract Management Corporate Contract Drafting Contract Drafting Dispute Resolution We Want to Be Your “Partner” Wooo hooooo! Sorry, That Wasn’t Part of the Deal… Vendor- Speak

  11. YOUR “PAPER” • Favorable Conditions! • Shifts Burden of Review • Avoids “Weasel Words” • P.S. PDF Files are Poor Sport FELINE SERVICES CONTRACT You (“Food Bringer”) agree to worship me and meet all of my demands. Food Bringer acknowledges and agrees that I am superior to Food Bringer in all regards. Just sign here __________ And here __________

  12. SUGGESTIONS FOR WRITING RFP REQUIREMENTS • Have a “Theme” • Ask Combined Closed / Opened Questions (“Do you…? If so, how do you…?”) • Write with the Future Proposal Evaluation and Contract in Mind • Avoid Lumping Requirements Together • Define Terms of Art, Abbr., and ACRNYMS • Be Specific—Avoid Ambiguity and Assumptions • Be Clear and Concise—More Isn’t Better • Check for Typos, Grammer, and Other Errers

  13. TRADITIONAL SELECTION / NEGOTIATION MODEL 100% Customer Supplier 0% RFP Issued Proposals Submitted Vendor Selected Negotiations Contract Award

  14. PRE-NEGOTIATION MODEL 100% Customer Supplier 0% Vendors Shortlisted Request for BAFOs Vendor Selected RFP Issued Proposals Submitted Contract Award

  15. PROPOSAL EVALUATION FACTORS • Apples-to-Apples and Quantitative Comparisons • Strength of Proposal • Adherence to Requirements • Ability to Perform / Deliver • Time / Position in Marketplace + Innovation • Financial Stability • Willingness to Contract Commitments • References (Good and Bad) • Price (Not Always a Factor)

  16. PROPOSAL EVALUATION METHODS • Many Different Methods (and Tools) Exist • Qualitative • “Word” Ratings (e.g., Unacceptable, Acceptable) • Flaws: More Subjective, May Be Inefficient • Quantitative • Rating • Scoring (Weighting) • Bottom Line • Don’t Over-complicate • Use What You’re Comfortable With • Eval Method in RFX?

  17. Rating Weighting / Rating QUANTITATIVE EVALUATION METHOD EXAMPLES

More Related