Nyden on Negotiation

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Using Normative Leverage to Draft Dynamic Contracts for Business Success

Nyden on Negotiation

In essence, normative leverage transforms the negotiation process from a transactional exchange to a collaborative partnership. By aligning values, understanding shared interests, and leveraging performance data, contract professionals can draft contracts that go beyond immediate financial gains, focusing instead on long-term success and sustainability.

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Monitor Risk Using a Risk Register

Nyden on Negotiation

Risk Management Goals: Minimizing, Monitoring, and Controlling Risk. Minimize or mitigate risk means finding ways to reduce, the impact or loss of a risk. Efforts to minimize the risk are performed before the risk is realized whereas mitigations take place afterward in order to remediate identified issues (such as conducting a root cause analysis and implementing a corrective action plan-based findings).

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Tip of the Week: Broaden Your Contracting Skills to Encompass Complex, Interdependent Relationships

Nyden on Negotiation

“The contracting world you work in is undergoing dramatic change. While the price was once the primary desired outcome in deals, customers today are demanding outcomes like innovation and digital transformation in addition to value and performance. Deals are being completely rewritten to bring in robotics and automation. How do contract and procurement/sales professionals stay relevant and compete?

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3 Quick Tips for Using Tactics

Nyden on Negotiation

Let’s start off with a valuable reminder: tactics are not a substitute for a real negotiation strategy. In working with thousands of negotiators, I have reached three conclusions about tactics. One, it is imperative to recognize tactics, so as not to be drawn into reactionary conversations. The single most important thing that you can do is recognize a tactic as a tactic.

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Super Powerful Negotiation Tip

Nyden on Negotiation

Master the use of normative leverage. Normative leverage is the skillful use of common standards, social norms, and shared interests to create an argument to gain an advantage or protect a position an organization has taken. When using normative leverage, contract professionals frame an organization’s needs as shared principles and norms that both companies strive to live by.

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Customers Lose Value from Poor Contract Management

Nyden on Negotiation

Sorry folks, but it is TRUE. For the sell-side account manager , her/his role in post-award contract management is more fully defined, recognized and valued by the supplier because it is in essence a customer satisfaction function. Buying companies tend to overlook the post-award contracting functions: performance management, relationship management, contract modification, and non-legal dispute resolution.

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5 Tips for Contract Management Success

Nyden on Negotiation

Contracts are a framework to dictate performance, not a framework for litigation. “Standard Terms and Conditions” are often misunderstood or flat out ignored. Project plans are not perfect and must be updated as changes occur. But, acceptance criteria should never change without a proper change order process. Stuff happens that the contract will not cover.

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