Week 5: The Award Phase - Discussion
Best Practices (graded)
Class: In Chapter 9 of our World Class Contracting text, the section, Best Practices: 45 Actions to Improve
Results, lists 45 actions to improve results in the contract award phase. Pick a few of these best practices that
you have seen successful in action and share your experiences with the class. Comment on the choices of your
classmates to discover other best practices that might be useful to you in contract negotiations. Discuss and
explain which best practice you have found to be the most important or the most useful to you in the past.
Responses
Response
Conduct
market
research
about
potential
sources
before
selection
Author
Anthony Mayo
Date/Time
5/27/2012 12:50:30 PM
I think that market research is a very powerful tool as it permits a buyer to actively and continuously
engage in the collection of information regarding a business’s products or service models in pursuit of
the company or companies that would best suit an RFP. My institution has parameters to guide the
vendor selection practices for Buyers as well as internal individuals who wish to do business with
outside vendors for subcontracts or who wish to establish memorandum of understanding.
For beginners, we have dollar thresholds that assist in determining if a vendor could be selected from
our internally pre-screened vendor listings or if individuals may engage in their own
search. Additionally, we have parameters surrounding whether or not product or service deliverables
would be bundled as part of a collective or if an individual/terminal offering is sought. We have to
determine if federal cost principles will be involved because we receive funding from the federal
government and there are strict guidelines for spending of federal dollars. We also screen along the
lines of warranty offerings, financing and product/service maintenance offerings to name a few
additional areas. Having a set of criteria to follow assists everyone in seeking out the vendors that
would best meet the needs of the service offering at hand. Of course, locating a pool of vendors who
meets each criterion provides another layer to the discussion that, starting with a sense of guidelines has
helped shape. In my experience, I have found that market research is how each of these areas can be
addressed.
Best
practices:
45 Actions Anthony Collins
to Improve
Results
5/28/2012 1:23:17 AM
Know what you want—lowest price or best value. This is not always an
easy decision. One always wants both but usually cannot find both, so
one may have to make compromises regarding what is acceptable,
without settling for something that fails to meet needs but was obtained
at a good price. I think that of the two, best value would least likely
leave one with a feeling of buyer’s remorse. Usually, the satisfaction
and benefits derived from selecting value over price, is so long lasting,
that one usually forgets the extra expense after a short time.
I see this when shopping around for an oil change. I may have coupons
that would make the purchase, much cheaper, or I may come across
businesses that are running great specials but I’ve learned over time
that I can never replace the quality service and peace of mind derived
from paying more to “tried and true” businesses that are reputable and
provide good guarantees.
Use past performance as a key aspect of source selection, and verify
data accuracy. Past performance can play a crucial role in deciding
which vendor to choose. They may never get a second chance to make
a first impression but also upon getting burned, just once, even after a
number of good or uneventful experiences with the vendor, may lead
you to drop them, altogether.
For example, I had a situation in which I took my vehicle to a dealership
to correct a factory defect that was reported via a model recall. A fuel
gage mechanism in the gas tank was found to be defective so I took my
vehicle in and the dealership worked on it. They completed the job and
I departed when I noticed that during the drive home, my rear tires, at
times, could not get adequate traction and I kept spinning out. I only
lived about 5 miles away but I noticed that after having driven about 2/3
of the way, that the full tank of gas that I started out with had dwindled
to empty. At about that time another vehicle flagged me down, shouting
that I was leaking fuel. I called the dealership. They towed my vehicle
back and corrected the problem but despite numerous letters
recommending scheduled maintenance (at discounts), I’ve not felt right
about going back and I probably never will, regardless of any good deal
offered. They’ve lost my trust over something I value a lot. My life.
RE: Best
practices:
45 Actions David Fore
to
Improve
6/2/2012 1:32:45 PM
Results
Hey Anthony, I agree with your statement. There are times when it is
impossible to get both. I think a person has to ask themselves the question as
to whether they would sacrifice quality at the expense of price. I think it is
important to do alot of research so that you can enable yourself to get the best
price without sacrificing quality. This may not be the lowest price, but it may
be a price you are willing to pay to maintain quality.
RE: Best
practices:
45 Actions
Dennis Granlund
to
Improve
Results
5/29/2012 7:37:40 PM
I agree past performance is usually a great guide to understand future
expectations. If a business provides quality at a good value they are more
likely to do it again. What you also have to watch is the competitors whose
performance may have improved as they close gapa to excellence. That is one
reason you may want to give another vendor a second chance. This also
keeps businesses compettivie.
RE: Best
practices:
45 Actions
Professor Gordon
to
Improve
Results
5/29/2012 10:34:09 PM
Anthony,
This goes back to one of the points in week one. Trust. Trust is not easily
gained back and after one bad experience, it can be lost forever.
All the best,
Robert
RE: Best
practices:
45
Alana Simpson
Actions
to
5/30/2012 10:24:32 PM
Improve
Results
I personally believe that in all relationships...both business and
personal, that you always have this truth on your mind. This is why
it is so important to say what you mean, mean what you say, and do
what you say you will do. Once trust is broken, it is extremely
difficult to gain back and it very easily can be lost
forever. Sometimes an organization may not even see the point in
doing business again with you to give you another opportunity and
vice versa. I just believe that it is extremely important to operate
with integrity at all times.
RE: Best
practices:
45
Actions Jennifer Weaver
to
Improve
Results
6/2/2012 7:44:54 PM
I agree that trust is a very important factor in any
relationship. In business if you break trust you don't
normally get another chance as you can sometimes in
relationships . In most cases there is nothing loving or
forgiveness involved so once your done your done for good.
RE: Best
practices:
45
Actions Lorenzo Welch
to
Improve
Results
5/30/2012 10:52:17 PM
Alana I think integrity is required with any business
transaction or negotiation. Like they say you only get
one chance to make a first impression. Trust is
needed in negotiation nothing is more discouraging
than an opponent that wants all or nothing. Winning a
contract that was done out with such attitude may
create a negative reputation and less repeat business.
RE: Best
practices:
45 Actions
Latosha Smiley
to
Improve
Results
5/28/2012 10:12:05 AM
Understand that contract negotiation is a process, usually involving a team
effort.
In understanding that contract negotiation is a process involving team effort
one can build a team of task specific experts in efforts to create a contract that
favors the "home team" buyer or seller. Entering into a negotiation lacking
skills/knowledge to negotiate project desires leaves your organization
vulnerable. By building a team of experts what one team member lacks
another team member fulfills.
For example, what I may forget to ask or clarify during the negotiation
process Anthony Mayo or Collins may possess the knowledge/skills to
address.
RE: Best
practices:
45
Actions Anthony Mayo
to
Improve
Results
5/28/2012 11:10:09 AM
Latosha, I identify with your team approach in contract negotiation. I
think that the art of negotiating is a priceless skill. I believe that in as
much as team strategies are important that other skills may require
usage as well. For example, knowing what you want before you go
into a negotiation can be assistive in guiding the discussion. Also,
being clear about what you require for a procurement to be
worthwhile versus knowing what you’d like as a wanted add-on that
could create additional value are pivotal places within the process. I
think that getting your needs met in the process and using your wants
as points of negotiation can be an effective tool. Also, knowing when
to leave a negotiation is important as well. I think that there are some
processes that won’t work out and then there are end points to those
that will.
RE: Best
practices: Latosha Smiley
5/28/2012 10:43:28 AM
45 Actions
to
Improve
Results
A. Collins,
You make a valid point often times when selecting a product and or service it
is difficult to determine rather or not you want the lowest price or better
quality. It is not often that the lowest price results in the quality work/product
desired.
Peace of mind is also very important when spending money on repairs of
something you are depending on such as a house or car. I recently had to
make a decision of taking my car to the dealer or my cousin-in-law for repair
of radiator and oil leak as well as replacing the timing belt. The dealer
charged me $1700 whereas my cousin-in-law was only charging me for the
parts plus $300. When I asked if he would guarantee his services he said for
this price no. So I paid the extra cost to take it to the dealership. While I know
he offers quality service I can not afford for my car to breakdown on me.
Use an
agenda
during
contract
negotiation
Levonde Jones
5/28/2012 5:12:03 PM
Use an agenda during contract negotiation Using an agenda keeps the discussion
structured. It forces you to stick to the important items, things listed on the
agenda. This also makes it easier to leave detailed questions to another time to keep
the discussion straight and to the point.
Set the right tone at the start of the negotiation If you start out straight and to the
point focusing on the goals at hand, the negotiating partners will take you much more
seriously. It goes back to the old saying, "People treat you the way you let them treat
you." Start firm and stay firm. Focus on making a profit for your company. At the
same time making it a win-win situation for everybody.
Best
practices
Professor Gordon
5/28/2012 9:58:47 PM
Class,
Are best practices situational or can they apply to any organization?
All the best,
Robert
RE: Best
practices Anthony Mayo
5/29/2012 10:20:58 AM
Professor, I believe that best practices can apply to any organization for several reasons. For
beginners, implementing best practices has the potential to provide a sense of strategic
alliance between a company’s goals and an induced learning curve through the on-boarding
of the best practice set of actions that are most applicable to a company’s needs. Baseline
management skills can be improved, as most companies promote from within and many
companies do not have management classes that continuously guide people through an
ongoing process of honing their supervisory skill sets – best practices actions can achieve
these goals. I think that best practices can provide a set of measurable objectives that any
company can use that would professionalize and align career paths with desired performance
measures that result in improved organizational communication for a company. Best
practices can also create visible models for improved and more acceptable business practices
and resultantly better individual work behaviors. I can’t imagine any company looking at the
best practices action list and not finding some identification with their potential to improve
their staff, management, corporate values or corporate culture.
RE: Best
practices Ray Stout
5/29/2012 1:16:56 PM
ANthony,
I completely agree with your last statement.. This list can be used by
everyone to find some way to improve a process that leads to a
contract. I would also make the arguement that most of these best
practices can be applied to just about any business relationship
whether or not it involves a contract. Really a negotiation happens
just about everytime any business or party has a conversation with
another. Every sale to a customer is actually a contract in a legal
term. A promise to provide a good or service at a particular price
with a certain level of satisfaction.
If everyone applied this level of detail within those relationship,
these best practices would actually create a stronger customer base as
well as a better understanding of the quality of the products
represented. Maybe some of them won't exactly fit in every
situation, but the understanding of this list be everyone concerned
should help at least move the process along.
enjoy,
ray
RE: Best
practices Latosha Smiley
5/29/2012 8:57:59 PM
I like that Ray,
You stated "If everyone applied this level of detail within
those relationship, these best practices would actually create
a stronger customer base as well as a better understanding of
the quality of the products represented. Maybe some of
them won't exactly fit in every situation, but the
understanding of this list be everyone concerned should help
at least move the process along".
These practices wont just help build a stronger client base
but a more cohesive work environment as well. If everyone
is on the same page know what needs to be
done/accomplished and is working towards a common goal
rather then (acting like crabs in a bucket) trying to pull you
down to get to the top organizations would be more
productive. I agree with your statement in how it relates to
building a stronger client base but I also feel it can be
implemented to improve employee relations.
RE: Best
practices Latosha Smiley
5/29/2012 8:51:03 PM
Professor and class,
I believe that the best practices outlined on page 159 can apply to any
organization (s) project, managerial team, training development, procurement
and organizational fund raiser. I feel that they may also be used in your
personal life as well. The best practices outlined for both the buyer and seller
a core planning techniques that most of us use in our daily lives (or at least
type A personalities). You don't have to enter into a contract or submit a
proposal to utilize these planning techniques or incorporate them into
managerial practices.
RE: Best
practices Professor Gordon
5/29/2012 10:35:46 PM
Latosha (and others),
What about in a failing project? Do they still apply?
All the best,
Robert
RE: Best
practices Latosha Smiley
5/30/2012 11:39:59
AM
Professor and Class,
I believe that the best practices can still be used to save a
failing contract. If a contract is failing the seller may begin
to doubt the buyers skills or ability to complete the project.
It would be best to reenter the negotiation process in efforts
to save money (depending on the time and capital invested
on a project). A failing project does not mean failure it just
means that adjustments need to be made to get the project
back on track. Best practices can be applied to regain the
buyer/sellers confidence.
RE: Best
practices Anthony Mayo
5/30/2012 2:12:58
PM
Latosha - well stated as usual!!! I too believe that best
practices would work very well with a failing project because
they would be synonymous to giving water and sunlight to
dying flowers. When projects are in trouble, it seems that the
best alternative that could occur is that the elements that are
responsible for derailing the project could be removed in
exchange for a healthy infusion of better business practices.
The best practices would provide the healthy infusion of
winning business practices that would be missing from the
project’s life cycle.
RE: Best
practices Matthew Hartman
5/30/2012 9:00:22 PM
Sticking to the guns (or getting back to plans) - these are a
must apply if you want to right a sinking ship.
Let's look at a few for example:
Original plan was to evaluate potential sources promptly and
dispassionately. The project is failing - this is a perfect time
to RE-EVALUATE sources.
Original plan was to use a weighting system to determine
which evaluation criteria are most important. Well, with a
project that possibly could fail, there could be a series of
events in the future that are detrimental to the business if it
does fail. Perhaps a company was looking at what if this
thing was successful... now they may need to see what is
important, in the event of a failure.
At the beginning, independent estimates from consultants or
outside experts to assist in source selection were
selected. Failure? How about get another opinion from
someone in the industry to assist helping out. Another set of
eyes or a brain can't hurt anybody, right?
RE: Best
practices Tiffany Terrell
6/3/2012 3:22:10 PM
The best practices can certainly be use and actually should
be used in a failing project. I feel that it would definitely
help to possibly turn the project back around again. I think
that be re-visiting some of the best practices that were the
initial focus this could help with resolving current issues and
help with moving the project forward.
RE: Best
practices Anthony Collins
5/30/2012 9:07:27 PM
Actually, after going over the practices again, I don’t see why they could
not be applied to any organization. Of course, there probably are
situations in which one would use one practice over another but I think
they all can be applied to all situations with varying degrees of success.
Some may be more applicable in different organizational departments
(e.g. accounting, finance, operations, personnel, etc.)
RE: Best
practices Lorenzo Welch
5/30/2012 11:04:27 PM
These practices are not just situational they can be applied to most
situations personally and professionally. The best practices states
examine alternatives and know when to walk away. From
a business point of view assessing each option should be second
nature to all organization. Personally we should know when to walk
away from a deal that may have a high risk. It is standard practice
to have a home inspection done which will provide information for
buyer. This information can be used at closing or before as leverage.
Each practice can be used across different organization or situation.
RE: Best
practices Levonde Jones
5/30/2012 5:04:36 PM
No best practices are applicable to any organization. Situations change as
individuals find improved ways to reach the end result. Best practice
involves a consistent method of doing something. Best practice ensures that
project management uses the same templates and software to ensure structure.
Project managers have set standards and solid methods to follow. Even
though they are not tailored to a particular organization, the best practice is a
structural method of doing things. I feel it is best to say that best practices are
situational.
http://www.ginaabudi.com/articles/developing-a-project-management-bestpractice
RE: Best
practices Jennifer Weaver
6/1/2012 8:57:13 AM
In most cases I believe best practices can be applied to any organization to
most situations. Having a best practice allows an organization to have a
strategy to follow when a situation or scenario presents itself and allows
people within the organization to stay consistent with their behavior and their
approach , it limits tribal knowledge that builds within organizations when
best practices are not established so that information can be tracked and
process remains consistent.
Re: Best
Practices
Renee Gordon
5/29/2012 12:40:43 PM
Prepare yourself and your team: I believe this of critical importance. Being well
prepared is not only professional conduct, but will enable you and your team to gain
the best terms for your company. In addition, being prepared will show the customer
that you cared enough about the contract negotiation to give it your best effort. This
can help build trust and forge a long lasting relationship between the company and
the client. It is always noticeable when one is not prepared for a situation, and it
often results in selling oneself short.
RE: Re:
Best
Lorenzo Welch
Practices
6/2/2012 9:10:56 PM
Great point Renee, I think unless you are performing as a Highly-
effective team then some people may fall behind. A highly-effective
team operates with a common goal. You are can never have to much
preparation for a negotiation or business outcomes. Each member of
team not just leader should be aware of processes and new trends. I
recently asked a co-worker for a document and she replied that she
did not have document I was in shock. This document is standard
part or work process. It would be the equivalent of not knowing
schedule for a project as a project manager. We can prepare
ourselves and some team members but others may insist on
mediocrity.
Know
what
you
want
Jared Shoemaker
5/29/2012 5:27:36 PM
In order to get the best results you have to know what you want out of the product or
service as well what you want in evaluation criteria. If none of those are clear then
you will end up with mixed results or negative results which can be very bad. You
need to know how you are going to compare bids, is the quality of past more
important than the price or is price and schedule the most important things. These kind
of choice have to be made early on when creating the contract that way you can relay
them to bidders so they can shape their bids around the criteria.
RE:
Know
what Tyrone Labad
you
want
5/30/2012 1:04:19 AM
Agree to this 100%. The most important thing while deciding on a market
research study or in doing a consulting project is having a very clear
definition of what the problem is, having a clear scope that would make it
easy to understand what is needed to achieve the goals of the study. I think
many studies come out with vague and non actionable or even incorrect
results as they did not know what they want and went directly into
implementation before getting clarity on what has to be achieved from the
marketing research project. In my opinion, for every project it is critical to
have a qualitative focus groups between key stakeholders and client where the
scope and need for the study is clearly debated and agreement is reached on
what has to be achieved. This would be the first step in ensuring that the
project is a value creating one.
RE:
Know
what Jared Shoemaker
you
want
6/2/2012 3:52:07 PM
A good and clear goal or idea is very important when doing anything.
With out a clear idea you don't have an end goal and the end will not
be what you really want it to be. a centralized idea will help focus
you and remind you what you are working towards. It also helps get
everyone on the same page.
RE:
Know
what Jennifer Weaver
you
want
6/1/2012 9:01:56 AM
I agree, you must know what you want to make a successful rfp so bids will
deliver what you need. This should be an iterative excersise to ensure you
have covered all basis and you do not go back to potential vendors changing
scope or requests. If you are not clear and specific on what you want as
deliverables it is likely you will not receive the desired result.
RE:
Know
what Jared Shoemaker
you
want
6/3/2012 4:55:52 PM
That is a great point, without a clear idea of what you want there will
be scope creep and changes made to the project as it is in progress.
You need to have a complete idea of what you want before you tell
your ideas to other in order for them to know what you want before
the project starts.
RE:
Know
what David Fore
you
want
6/1/2012 12:44:46 PM
I agree that it is important to know what you want. When you go into a
situation without knowing what you truly want, then you risk the idea of
being sold something that you really dont want. I feel like you have to have a
list to distinguish from and make the best pick possible. If you arent clear in
your select, the results will be bad. I think its the best way to start a contract
situation and would help tremendously in the bidding process.
Conduct
market
research
Tara Miller
5/29/2012 5:38:53 PM
I have not seen this used successfully in practice but I have seen first hand when it has
not been used which illustrated just how important it is to the negotiation/award
process. I have seen clients/buyers who were not aware of the requirements that are
required to complete a project. As a result, the deliverables had to be modified
midterm to meet the requirements or deliverables from the original contract. The best
thing that a buyer can do is to know exactly what they are getting into and understand
the requirements that will make the deliverables successful. I would recommend that
a buyer first employe an expert that can give a realistic perception of what will be
required to complete the project.
Who has
the
authority
Tiffany Terrell
5/29/2012 7:42:52 PM
Determining who has the authority to negotiate is an action that can help to improve
results in the contract award phrase. Before entering the or starting the negotiation it is
very important to know who the key decision maker (s) are as it pertains to
communicating during the negotiation process. Yes, there may be individuals who
will have some influence over the contract however again it is important to identify
who the decison maker will be for the contract. I feel that this is done when an initial
RFP is sent out however this individual (s) can change over time. So it is important to
maintain that contain and understanding throughout the process. I have had
experiences in the past where I was responsible for responding to RFP's for
technology solutions and a great deal of time was spend with individuals that had no
influence or final say so as it pertained to the contract award decision. So, whether it's
responding to an RFP or other contracts that are in negotiation understanding who the
key individuals are will definitely work in favor of the seller.
RE: Who
has the
Professor Gordon
authority
5/30/2012 9:29:20 PM
Tiffany,
Isn't everyone a decision maker in some way. Even though some people
might not be the actual decision maker, most people that have a stake in the
decision will likely have some kind of input into the decision. Why not make
sure that as many people as possible are in favor of the decision?
All the best,
Robert
RE:
Who has
Dennis Granlund
the
authority
5/31/2012 7:13:10 PM
Of course you would want as many stakeholders as possible in favor
of the desirable decision. If one does not have the authority, then that
person needs to use there influence to provide the data and facts to
the stakeholders and decision makers to prove that the decision is the
right choice for the project.
RE:
Who has
Anthony Collins
the
authority
6/1/2012 7:42:01 PM
I think that everyone in an organization, is a decision maker, of
sorts, in that they all have input into the final decision. Usually,
the final decision is made by only one or a group consensus, but
often times their final decision is based on input provided them
by different departments, shops, activities, subordinates, etc.
Even though input from other sources is advisable, attempting to
get a consensus from numerous input providers may be next to
impossible. People are different and have different motivations
for thinking/acting the way they do. Awaiting a consensus of,
even 30%, may not be practical and may take far longer than the
deciding body or individual has.
It would be ideal for all involved to agree but this is probably not
likely to occur, so decision makers have to move on for the
greater good of the organization.
RE:
Who has Jennifer Weaver
the
6/2/2012 7:47:13 PM
authority
I think there should always be a decision maker so that
decision can actually be made, as you stated, to gain
consensus can be difficult, it is up to the decision maker to
consider all opinions and take in all information to make the
best decision with all of the information possible. In most
cases, if everyone was making the call the jury would be
hung most of the time.
RE:
Who has
Lorenzo Welch
the
authority
6/2/2012 9:27:47 PM
Everyone should not be able to make
decisions that can adversely affect business or
project. Everyone should be able to offer
suggestions but final decisions should be
made by designated personnel,based on
organization. If all criteria s are met
and have been agreed on information should
be reviewed objectively. A final decision
should be made by chosen leader that benefits
organization goals.
RE:
Who has
Levonde Jones
the
authority
6/2/2012 8:56:18 PM
Somes times you are not receiving accurate feedback if everyone is
in favor of the decision. There needs to be some type of opposition
in order to find out how the team really feels. I feel that opposition
can lead to a more beneficial outcome. Opposition will make an
organization aware fo any potential problems or conflicts, or any
likes and dislikes. Personally I feel that everyone can not be a
decision maker. Everyone can have influence on the final
decision. It takes the opinon and input of the entire team to really
figure out the best benefit for the organization. And it does not hurt
to have an outside consultant to ensure an unbiased decision. I am a
true believer of TEAM. Regardless of the definition, I truly believe
that TEAM is an acronym for Together Everyone Achieves More.
RE:
Who has
Tiffany Terrell
the
authority
6/2/2012 3:11:15 PM
I would agree that most people are a decision maker in some ways.
However I still feel that it's important to identify the key individual
(s) that will be responsible for making the final decision. For
example I have a new client, and this happens quite often, that I'm
working with to implement their new HR/Payroll system. The main
payroll contact and the office manager are the two key individuals
that I will have the most contact with during the implemenation
process. They did not want to change over to our system and they
have reminded me of this on a daily basis. The owner however
wanted to change over to our system because he saw the value from
the District Sales Manager as it pertains to the overall big picture and
the ROI. Now had the DM focused on the two individuals, who
although will be using the product on a daily basis, he may not have
faired well. So, that is why I believe that it is important to know who
the key decision makers are and yes the influencers as well.
RE:
Who has
Bryant Windham
the
authority
6/2/2012 9:37:17 PM
I agree with Tiffany that the person with the authority needs
to be determined. Our text states to “determine who has the
authority to negotiate for each party.” (Garrett 155) I do
believe that it is just good business since to take input from
all the stakeholders but the decision needs to be based upon
the decision makers. That is way they pay the upper
management the bug bucks.
Garrett, Gregory A.. (2010) World Class Contracting, 5th
Edition. CCH. P 155.
RE:
Who has
Renee Gordon
the
authority
6/3/2012 1:28:46
AM
You all have made good points regarding decision
makers. In my experience, although there may be
many who are able to influence the decisions made,
there is actually only a handful of people who are
able to make the final decisions regarding what is
best for the company. We all can have opinions and
can voice them, but there is always one or two
specific people who will make the final decision
about a project, product, or service. I do believe it
is beneficial to take in all types of feedback--both
positive and negative--in order to gain a bigger
insight into the situation. As Tiffany pointed out,
the end users of a product may not see the long term
benefits to a software change because they will be
mostly focused on the fact that they have to learn a
new system & are focused on the difficulty of doing
that. Some people do not like change, and that can
negatively influence their thinking on a situation.
RE:
Who has
Jennifer Weaver
the
authority
6/3/2012 10:01:36
PM
This is a great point to bring up and another
reason I think you are correct that there are
always certain people appointed to be the
key decision makers in any given project or
process. It is important that the decision
maker has a broad understanding of all
current and future strategy for the decision
being made and can take into account all of
the reasons in why the organization has
chosen to take the direction they are taking.
If this is a person or involves people who
do not understand the bigger picture or who
are hesitant or resistent to change, it is
likely that poor decision could be made due
to lack of information or understanding.
Best
practices
Matthew Hartman
5/29/2012 8:49:24 PM
Great list illustrated in the text. Most of them apply to my industry (insurance)... and
a few I can't relate due to my experience.
The first one is one of the biggest... looking at it from the agency selling to a
consumer perspective.
"Know what you want - lowest price or best value."
There are different groups of people when it comes to purchasing insurance. An agent
pitches a few policies - one with state minimum liability limits for a nice price,
typically with less than stellar customer service. Those come with the least amount of
protection, but is nice financially as they are by far the cheapest. Then, there is the
best value. There is a little bit more coverage but with a more reputable
company. You pay slightly more for that better named company who has your policy,
and of course instead of state minimum coverage, you get that extra 50K in the event
something bad happens.
Both value and price realms can be encountered in the insurance world, easily.
=======
Additionally, "Conduct competitiveness price analysis" holds extremely true in the
insurance industry. With so many players in the personal auto insurance industry, (I'm
sure one would recognize a few of these - State Farm, Progressive, GEICO, Travelers,
Liberty Mutual, Hartford, Nationwide, Allstate) each company has to carefully
analyze coverages and premiums per market area to keep it competitive in the said
market. In many areas around the United States, you will see more heavily
concentrated policy holders in pockets as they definitely have an advantage. They got
in to that area, kept it competitive, and with the positive word of mouth, many people
have turned to that company.
Document
negotiation
lessons
learned and
best
practices.
Cynthia Mcgowan
5/29/2012 11:00:04 PM
Document negotiation lessons learned and best practices. - I have not participated in
an actual contract but running a project I have found that documenting lessons learned
is not only beneficial as a learning tool but it works very well for leverage when it
comes time to put specifics to the project scope and having both sides understand the
rationale behind certain decisions. Being able to cite what has not worked in the past
provides a very strong argument for driving change and for getting the buy in for
addressing things from a team. In my organization we have been going through
multiple phases of a project that has had been able to evolve with each iteration, due
to both teams coming together after each cycle to evaluate what we could do better.
Not only does it support better quality but it also promotes a strong relationship
between the teams. With the history of the project and the reason "why" being
documented for things that have happened, solutions have been found and risk have
been diminished due to the continuous shared knowledge between the groups.
RE:
Document
negotiation
lessons
Latosha Smiley
learned and
best
practices.
5/30/2012 11:54:43 AM
Cynthia,
I believe that documenting lessons learned is actually a good learning tool. If
this information is stored on a shared network/file the lessons learned or
mistakes made throughout a negotiation may help another individual avoid
making them. In this aspect it provides leverage when it comes to defining
project scope, specifications, and preventing scope creep.
Best
Practices:
45 actions
to improve
actions
Martial Yao
5/30/2012 4:59:21 PM
The goal of the negotiation is to reach an agreement and all parties need to have the authority to negotiate; each
party should make sure that the other parties can make some decisions; otherwise, parties could waste their time.
RE: Best
Practices:
45 actions Trudy-Ann Dyer
to improve
actions
5/30/2012 10:30:21 PM
True. In a negotiation process, if a party is not fully convinced that they are
better off with an agreement, they will likely walk away. Factors that will
influence the decision to walk away from a negotiation are: cost benefit
analysis, differing perceptions and motives, differing time tables. If during an
attempt to reach a mutual decision on common matters becomes an
overwhelming or perplexing task, consider it a risk or warning sign of what
could potentially develop into a problem.
Conduct
competitiveness
price analysis
Ruchi Galande
5/30/2012 7:06:45 PM
As a buyer I always do price analysis with the competitor, with the time method of
analysis is changing. I remember visiting different to store to check price before
buying any expensive product than I start doing my price analysis on internet before
going to store instead of roaming around store to store. And now I carry my smart
phone if I like anything in any store price analysis is just a scan away. I have to scan
the bar code to check price of that product and availability in different stores.
Best
Practices
Teanna Soule
5/30/2012 8:51:55 PM
1. Know what you want - lowest price or best value: I have seen this best practice in
action from both a buyer and subcontractor position. In my experience, from both
sides it is important to understand what your want from the outcome - when all is said
and done, what is more important, lowest price or best value? I have seen my
organization choose best value time and again, and always do their best to maintain
competitive pricing.
2. State your requirements in performance terms and evaluate accordingly: In my
regular practice, I use the scope statement, CDRL requirements, known customer
expectations, and other customer guidelines to plan out a program. In this I ensure that
my requirements are outlined in performance terms and ensure regular analysis and
evaluation of cost and performance to ensure I am providing my customer with the
best value at an overall competitive price.
RE: Best
Practices Teanna Soule
6/3/2012 2:08:57 PM
Contracts and Marriage, the Best Practices absolutely apply from
selection through definitization.
1. Know what you want (understand what values you are
willing to compromise in a relationship)
2. State your requirements in performance terms and evaluate
accordingly (Discuss your own values and discuss the values
of your partner to better understand each other and understand
how together those values can improve the relationship)
3. Conduct market research about potential sources before
selection (obviously, most people don’t marry after the first
date)
4. Develop organizational policies to guide and facilitate the
source selection process (In this step, I would say that a
partnership of marriage, communication and boundaries
should be understood between each other)
5. Obtain independent estimates from consultants or outside
experts to assist in source selection (Discuss the relationship
with friends and family, do they support the relationship, what
is their feedback)
6. Use past performance as a key aspect of source selection,
and verify data accuracy (Does this person have a history of
being dishonest or running when times get rough?)
Best
practices:
Marriage
Professor Gordon
5/30/2012 9:27:46 PM
Class,
Would anyone like to try offering some of the best practices of keeping a marriage
together? Would anyone want to comment based upon past positive or negative
experience?
All the best,
Robert
RE: Best
practices: Matthew Hartman
Marriage
6/2/2012 4:38:47 PM
Tying in text material and a marriage, I would suggest that some of the best
practices be:






know what you want (removing the cheapest price/value)
use a weighting system to determine which evaluation criteria are
most important
understand that the contract (marriage) is a process, involves team
effort
know the other party
know the big picture - because marriage isn't a little picture
identify and prioritize objectives
These are just a handful that would apply. It's weird to think that you can
take these from a business context to a personal context, per se. Marriage is a
big picture. Look at your objectives... understand it is a process. Marriage is
something that takes work!
RE: Best
practices: Lorenzo Welch
Marriage
6/2/2012 9:55:10 PM
Matthew, I think that this list is excellent. The only thing that
I would like to add, is just like a business negotiation before
getting married /dating. Observe and know when you cant
fulfill expectations from other party. Everyone has different
expectations know when to walk away before getting
married. It is a contract do not sign blindly. Hence I am not
married based on some of the best practices for buyer and
seller; Know the other party, Know when to walk away and
Know what is negotiable and what is not. Both
professionally and personally we should know our value and
don't be eager to sell yourself short.
(World Class Contracting, 5th Edition. CCH p. 160).
RE: Best
practices: Felicia Walters
Marriage
6/3/2012 11:43:03 PM
That "big" picture is the ability to goal set. The approach should be
inclusive of short-term goals as well as long-term goals with
measurable points of completion along the way. If this is not done,
it's merely just going through the motions. This is an universal
approach to any situation. It also helps to facilitate communication
and stifle confusion.
RE: Best
practices: Jennifer Weaver
Marriage
6/3/2012 10:03:51 PM
Although this seems to be an unusual topic to relate best practices to,
looking back at my marriage (now divorce) this would have been a
much better appraoch to take and I think could easily be incorpotated
into a situation in which a couple is making the decision to marry.
Because there is normally and overwhelming amount of emotion
involved in a decision to get married, this appraoch really brings
back thereality of the situation taking place and would allow both
parties to take a step out of emotion and truly understand the needs
and the wants to that furture would bring.
RE: Best
practices: Teanna Soule
Marriage
6/2/2012 10:36:41 AM
Well, this is certainly an interesting topic for contracts... Marriage. As a
VERY young adult, I was enlisted in Active Duty Army, newly married (10
days prior to shipping) to my first husband who was also, and still remains to
be, Active Duty only few days following myself. We remained married for
nearly 10 years. During the marriage we had three beautiful children, and we
learned how to be great soldiers; unfortunately, not being near family while
raising a family and trying to remain great soldiers and a married couple was
the failure of our marriage. When 9/11 occured we had tough decisions to
make, as we were both called to duty for deployment. The big question
became do we both remain in the service, fullfilling our contracts to the US
Government and find guardians for our children, risking our lives or do one
of us use a clause in the contract to exit. After negotiations (heavy discussions
with my ex-spouse) we decided I would use the exit clause (Failure to Have a
Family Support Plan in Place) to Honorablly discharge from the Army and
care for our children. Since that time, my ex-husband has been deployed a
total of three times between then and now, and also during that we decided to
divorce. He was unfaithful, claiming he needed a companion during his time
of deployment. So although he maintained his contract and duty to the
Government he failed his family. There are no hard feelings, we are friends
and I now have a wonderful second husband and four beautiful children. I
have obtained my BS in Business Management and I will be beginning my
Capstone Class to complete my MBA program following this course. I have a
great career at Lockheed Martin and maintain my contracts in marriage and
employment, doing my best to support our service members through my
current position.
Overall, personal contracts are as hazardous to break, clause or no, as those in
business. Yes, it was a two year battle in court to disolve the marriage, set up
custody and child support and move forward with living and making new
contracts in the end.
RE: Best
practices: Ruchi Galande
Marriage
6/1/2012 2:57:51 PM
In my opinion love, trust, understanding and respect are the most
important factors of any marriage. I have been married for four years.
I came here from different country my husband played different roles
to make me happy, he understand what I feel and respect my feeling.
We respect each other’s decision if required we discuss. I think my
marriage now we both understand each other and ready to adjust for
each other with any complain.
I have seen friends who got married after us. I have seen them arguing
and trying to make their own points not listening each other even for
small issues. And I think that is where we both learn that we don’t
want our marriage to be like that.
My husband always says to me, boss is always right and at home you
are the boss.
RE: Best
practices: Ray Stout
Marriage
6/1/2012 11:29:43 AM
When i thought about this for awhile i came up with this question - How
often does a contract between two parties actually entitle either party to
benefits outside of that contract?
First - by NO MEANS is this an atempt to devolve this conversation into a
political battle about marriage, this is just a thought about how the actual
contract is set up.
Let me explain. When two people enter into the contract of marriage via a
marriage license there are several other benefits, contracts, or agreements that
are automatically established. Just to list a few. Tax rates are changed,
insurance policies change(in some cases it is mandatory for an insurance
policy to carry a spouse), some cases debts are consolidated, and finally there
are the other legal responsibilities and protections. These examples are of
things that change when one contract is signed, but that contract was not
necessarily signed between the government and those parties.
Now on to my point, how many times has anyone seen where one contract
leads into another either by default or within the language of another? Or
how many times does one contract with a company lead to special treatment
either through overt or covert actions within a company to push a certain
product? We had an example last week of how one company was bidding on
a contract, but they also were having computer problems which could be a
huge contract for the peach company.
Basically, can a contract mean more then just an agreement between two
parties, like a marriage, or is it actually a key that opens many doors,
hopefully?
enjoy,
ray
RE: Best
practices: Tyrone Labad
Marriage
5/31/2012 7:19:39 AM
In my opinion, some of the things that are necessary to have a satisfying and
fulfilling marriage is to have a long term orientation of things, planning at a
high level, and having complete confidence and trust in the other party. In
addition, letting people be independent and letting them do their own thing
without micro managing them are also very relevant and key aspects of
ensuring that a strong partnership is built that would last a long time. The
issue of compatibility is also very important, where each of the partners
should spend a good time with each other and go through multiple good and
bad experiences, where they get to know each other and if at all they can be
compatible with each other.
RE: Best
practices: Dennis Granlund
Marriage
5/31/2012 7:18:15 PM
Pure openess and honesty have helped my wife and I sustain a marriage going
on 30 years this October. Buying and bringing home flowers spontaneously,
biting your tongue, accepting directions and getting along with the inlaws
have all been very helpful in keeping each other happy. Remembering the
commitment was for life gets you through those tough times. And did I
mention patience.
RE: Best
practices: Professor Gordon
Marriage
5/31/2012 10:13:21 PM
Dennis,
It sounds like you have some sound advice. I am not sure if just
flowers randomly have made the 30 years successful, but I am sure
that there are a number of little things that add up over time.
All the best,
Robert
RE: Best
practices: Martial Yao
Marriage
6/1/2012 4:40:53 PM
Identify and prioritize objectives
My wife and I adopted the following principle: Our priority #1 is
to stay together, live together and take care for our children.
This implies that we must accept each other with our strengths
and weaknesses. When there is incomprehension, both we
know that we have to preserve what is essential.
RE: Best
practices: Bryant Windham
Marriage
5/31/2012 12:00:26 AM
Before I got married in one of our counseling sessions the counselor gave me
some great advice he said that the man should always have the last words in
an argument and those last words are “Yes Dear”. Seriously a marriage is a
contract and keeping it together is work. You have to be able to find common
ground but not be afraid to let your spouse grow. You also have to be able to
compromise for the mutual benefit of both you and your spouse. Focus on the
things that brought you together and the things that you like about the other
person and realize that they are an individual so don’t try and change them
but as they grow, grow along with them. Lastly life is to be enjoyed and this
is the person you chose to enjoy it with so make great moments with them.
RE: Best
practices: Renee Gordon
Marriage
5/31/2012 2:47:04 AM
Communication and trust are key factors in making a marriage
work! I know couples who keep separate bank accounts because they
don't trust each other to not spend all the money & who keep mostly
financial secrets from each other. It baffles me--and they wonder
why they fight all the time!! I believe in full disclosure and in
working together to make a relationship work. It takes both parties
to work toward the other's happiness & well being. If both people do
that, then there won't be much strife & there will not be many
obstacles that they cannot work through together.
RE: Best Ray Stout
5/31/2012 4:34:45 AM
practices:
Marriage
Renee,
I woudl have to actually disagree with you. I think it is a
great idea to have separate finances in a marriage because it
allows either party to actually surprise the other. In my
house hold we break down everything, by income
percentage, that goes into an account and the bills are paid
from that automatically. ANy extra in our different accounts
can be used for what ever. OF course if one gets into
trouble there is always a way to transfer from one account to
the other, but it allows for some freedom to not only surpirse
the other, but save up money and resources to afford those
types of things.
I woudl agree that it is all about communication. If both
parties are communicating and working from the same
goals, everything works. I woudl add including raising
children. When that communication breaks down is when
problems start. I am sure we have all watched or read about
the different reasons different mental disorders are portrayed
on television and movies. Most of them come down to
either wanting attention from one party or another, or the
inability to communicate a want or desire. Now, by no
means am i saying that is the only reason, i am jsut saying
that communication between all parties concerned in a
marriage is key to make it successful.. Everything else will
work its self out because the parties can find a common
ground.
Shockingly enough just like every other contractual
relationship.
enjoy,
ray
RE: Best
practices: Jennifer Weaver
Marriage
6/3/2012 10:09:22
PM
Ray,
I have to agree with you to some extent, there does
need to be some seperation for exactly that reason,
if one person wants to surpise or do something for
the other person it is very difficult when one person
is controlling all of the money or both parties are
able to see what the other is always doing. This
should not be an issue if there is trust between the
parties within the relationship and I have found that
in many marriage there are many fights and
disputes because life becomes a bit too much of
togetherness and there is no more feeling of an
indipendant or individual identity between the two
parties. As an example, my father always did the
finances and my mother always had to let him know
when she was buying things or taking money out of
the account. Finally, about 5 years ago, they
seperted some of the money so that my mother
could learn to manage money and she could have
her own account. She loved it and the financial
relationship got much better, the only thing she ever
uses her account for is to suprise my father with
gifts and she has more confidence in managing
money which makes my father happy since he
wants to ensure she could always take care of
herself if something were to occur. This is a very
positive example of a loving and trusting
relationship, it seems as if when trust is lost,
seperation becomes an issue.
RE: Best
practices: Kathryn Saura
Marriage
5/31/2012 11:42:59 PM
Renee,
That's a great example. If there is no trust in a relationship or
in any partnership that involves needing to come to
agreements, then there is no point in even being in the
relationship. Agreeing to terms of a contract is similar to a
relationship where you have to have this open
communication to understand what is important to one
another and how it will benefit them. If this information is
kept from one another then chances are this partnership, or
in business, a potential project, can easily fail.
RE: Best
practices: Yelena Magid
Marriage
6/1/2012 10:37:42 PM
Bryant your counselor is a wise man and he gave you a great advise. It should not
be “I” in the marriage only “We”; however once married many people continue
thinking only about oneself, then the union fails. Negotiations are important in the
marriage, and couple should always find compromise in order to keep marriage
strong.
RE: Best
practices: Dennis Granlund
Marriage
6/3/2012 11:59:46 AM
I generally don't like counselors mainly because the ones we have
been involved with in our lives have seemed to have the main goal of
keeping you coming back to sustain their business. However sounds
like you have a good one. I especially like the last words and the
focus on the things that brought you together. There are many great
slogans that you can by picture frames and decor for your home that
remind you of how you enjoy life together.
Best
Practices
Bryant Windham
5/30/2012 10:14:41 PM
I have not worked with contracts as an employee but when I owned a rental property I
used several of these best practices. I would put Know what you want – lowest price
or best value and Know the big picture together as one. As a landlord when it came to
remodeling a unit you have to always look at the big picture of the marketplace and
decide whether you want to go with lowest price or best value. You had to understand
that some items of a remodel will not translate into a higher rental rate. This was the
same for repairs you had to make sure that it was done correctly, quickly and weight
the price of different options of repair. As landlord I had to evaluate potential sources
promptly and dispassionately when it came to selecting tenants for units. Even if the
potential tenants presented themselves as a likeable person I still had to evaluate them
dispassionately according to the application and documentation that they gave.
Best
Practices:
45 Actions Tamika Francis
to Improve
Results
5/30/2012 11:53:10 PM
I believe as a buyer the following actions are key Know what you want—lowest price
or best value, State your requirements in performance terms and evaluate accordingly
and Conduct market research about potential sources before selection (Garrett 159) to
any contract. I used these actions when I was planning my wedding to great results
and when buying a car. As a buyer you need a starting off point to begin with so that
you understand the direction you want to go with. You can not negotiate a contract if
you do not understand what you are trying to get out the contract and you can not
know when to end negotiations if you do not know what you will and will not take in
your you contract negotiations.
References
Garrett, Gregory A.. World Class Contracting, 5th Edition. CCH. <vbk:978-0-80802568-9#outline(9.2.1)>.
RE: Best
Practices:
45 Actions
Professor Gordon
to
Improve
Results
5/31/2012 10:16:07 PM
Tamika,
One should go for best value. I believe it was Zig Ziglar that stated that with
a low price that one will likely have to apologise to the customer about poor
quality or an insufficient guarantee. It is better to have to apologise once for
a slightly higher price than to continually have to apologise for poor quality
or an insufficient guarantee.
All the best,
Robert
RE: Best
Practices:
45
Actions
Tamika Francis
to
Improve
Results
6/2/2012 10:22:39 PM
I very much agree in most cases I go for the best value possible even
if it means I spend a little more for the product. If it last a long time it
was well worth the price. I have this argument with my husband all
the time because he will rather by something cheap 5 times before he
realizes that we are not always getting the moneys worth from the
product. Many of our large home purchases are my ideas but I
always have to show him my research to prove that the value we are
getting is really good for the product.
RE: Best
Practices:
45
Actions
Matthew Hartman
to
Improve
Results
6/1/2012 5:58:14 PM
I read an article on CNN early today, however could not find it this
evening, so here is one referencing Consumer Reports. Wal-Mart
truly focuses on low prices. Look where it got them - bottom of the
list. Some of the complaints were congested/congested aisles and
items being out of stock. Low price is easy to do, but
the repercussions are harder to overcome.
http://fox8.com/2012/04/04/consumers-reports-ranks-best-and-worstgrocery-stores/
Best
Practices
David Fore
5/31/2012 5:08:05 PM
One practice that I have seen in business, is the best value and lowest price. This is
important in any aspect of business, and it is an important practice that we should
practice in our daily life. We use this alot on simple task at my job. Research has to be
done when implementing this practice. This is particularly important when purchasing
a vehicle, home or any other large ticket item that involves a contract.
RE: Best
Practices Tyrone Labad
6/1/2012 1:26:08 PM
David, I agree with you that one should be looking at getting a good price,
but unless its a very matured market where suppliers are many and
technology is advanced, there would be trade offs between the quality and
value that we get and the price that the supplier would want to charge from
us. Value should be measured in terms of immediate benefits, long term
benefits, maintenance costs, reliability and quality and many other parameters
that would make for an optimum solution, and this may not may not be got at
a very low cost. Hence there must be tradeoff analysis to see whats the
optimum value based on what the requirement is, and then they should make
the decision to select the right supplier.
Best
Practices Knowing
Felicia Walters
When to
Walk
Away
5/31/2012 8:43:15 PM
Every opportunity is not a good opportunity. Generally a relationship starts out fine.
However one of the parties may begin to fall behind. For example they may not
return phone calls or attend scheduled meetings. They may have unrealistic
expectations. In this case, the relationship has been tainted. There is no sense of trust.
The best mode of action is to walk away.
RE: Best
Practices
Knowing Yelena Magid
When to
Walk
Away
6/2/2012 10:22:17 PM
If contract terms and conditions do not align with firm’s
goals, then it would be prudent to walk away from contract.
“No business is better than bad business.” (Garrett 2010,
p.148) Walking away from bad opportunities would save resource
for more favorable and profitable contracts. Bad contract
would defeat main objective of any company to make profit, and
avoiding such contracts would help business to survive.
Lowest
price or
best
value
Jennifer Weaver
6/1/2012 8:59:54 AM
I think this is a great practice to know what you want as this concept will apply to any
organization and will likely depend on the scenario it is being applied to. Even in
someone personal life this is a good practice, thinking of airline tickets, knowing what
you want, in most cases it is lowest price as a driver, this helps to establish a proper
strategy to search and makes decision making points easy, you are searching the
lowest price possible and when you find it this is the one you purchase.
RE:
Lowest Cynthia Mcgowan
6/1/2012 6:55:57 PM
price or
best
value
I agree with you Jennifer, and I also think that you will need to have a range
that is acceptable for quality when it comes to your lowest price. What this
means is that you will have to set the upper and lower bounds to what you
expect when you try to get lowest price. It could be that lowest price means
that you are getting only a fraction of what you originally set out to find.
Even your lowest priced item will still need to adhere to some types of
standards in order to be acceptable.
RE:
Lowest
price or Professor Gordon
best
value
6/2/2012 2:06:27 AM
Jennifer,
I agree that there is a bid difference between the lowest price and the cheapest
price. I feel that people can get a low price but that may mean that they get
something that will cost them more in the long run. Knowing the difference
is very important.
All the best,
Robert
Best
Practices
Kathryn Saura
6/1/2012 11:20:27 PM
One of the actions I chose was creating a competitive analysis report. This is
something that we recently did at my organization to use in negotiations with
prospective customers. After finding out what other competitors they are looking at, it
helps to deliver our pitch so they see how we would be a better choice. Another action
I have used to improve results was know what you want-lowest price or best value.
My region manager always stresses to us that a sale does not happen until value
exceeds cost. So our view is that we stress the value of our product so that customers
mock the same mentality of the importance of the best value over the lowest price.
RE: Best
Martial Yao
6/2/2012 3:08:49 PM
Practices
If you want your business to succeed, you need to know almost everything about your
competitors like your own company and your customers. Competitive analysis is a key
element in the development of the company strategy. The report will include information
about competitors' products, R&D, production methods and costs, organization, marketing
strategies, strengths and weaknesses, and so on.
RE: Best
Practices Lorenzo Welch
6/2/2012 8:57:42 PM
Martial you I would agree with you. If you do plan to stay in
business you have to know what your competitor is
offering. Most business some times only focus on low price
but consumers have a lot of information that is readily
available if they chose to do some research. If a RFP is
submitted it is in the interest of a bidder to indicate accurate
quotes for machinery. The lowest price may win bid but If
prices increase after Award Phase. Client will be unhappy
and may never use services again. Most business and people
can respect value and price points that are co-related to such
products or service
RE: Best
Practices Trudy-Ann Dyer
6/2/2012 10:35:51 PM
I think one of the most important best practices that buyers
and sellers should exercise is to know the other party. You
don't need to to have an existing relationship, however it is
important to do research just as you would for a job
interview- finding out who it is you are going to be working
for and what the company does. It is also essential to
communicated directly with the other party to get the
answers you need.
RE: Best
Practices Dennis Granlund
6/3/2012 12:00:53
PM
The second part is to gain the other parties respect
by being reliable and fulfilling your commitments.
Obtain
independent
estimates
Tara Miller
6/2/2012 6:50:38 PM
I also think that obtaining independent estimates from the consultants or outside
experts to assist in the source selection. Having an independent outlook on the source
selection and any part of the contracting process, I believe is important in the
negotiation. They can provide a perspective on the situation that someone who is
involved and possible have their livelihood involved in the deal.
RE: Obtain
independent Tamika Francis
estimates
6/3/2012 9:41:32 PM
This is a good idea. Many areas of business suggest that you use independent
companies to review what you are purchasing to ensure you are getting the
right value. This includes having a mechanic when you are buying a used care
and a home inspector when you are buying a home. These are the types of
persons that you can draw from for sourcing and bench marking whether
estimates that are given are adequate to contract for purchase.
RE: Obtain
independent Professor Gordon
estimates
6/3/2012 9:41:54 PM
Tara,
This is a good one. I feel that getting outside expert advise is always a good
idea. And for those who are fans of Pawn Stars, one sees that this is the
difference between making a good deal and a bad deal.
All the best,
Robert
Know
when to
Ruchi Galande
walk
away
6/3/2012 6:30:55 AM
It is very important part for any buyer or seller because negotiation has its own limits.
There will be a moment when you will feel this not going to work and it is just waste
of time to deal further.
In India I used to do this a lot for street shopping where it is important to bargain as
seller keeps the product price high. You have to decide what will be reasonable priced
to buy that product. But some time the price does not work with seller and I just
decide to walk away as I know how much I want pay (value of money) of the product.
It can happen other way round also where seller says I cannot sell this product on this
price and he just walk away from selling.
RE:
Know
when
Cynthia Mcgowan
to
walk
away
6/3/2012 9:36:05 PM
Ruchi,
I agree with you on this, and I would add that it is important to know when to
walk away, even after the contract has been signed. When parties see that they
have made a mistake it is good to know when to count your losses and find a
way out of the deal. Staying in a bad deal to the end may cost more for you than
it does to buy (negotiate) your way out ahead of time.
RE:
Know
when
Felicia Walters
to
walk
away
6/3/2012 11:38:45 PM
Some companies unfortunately feel as if they have invested a great
deal of time and money into an endeavor. This creates a false sense
of security. It can lead the parties involved into thinking that they
need to stay involved in a contract. The reality of the matter is that
staying in the contract after the unprofessional transactions have
taken place can cause much more harm.
RE:
Know
when Tara Miller
to
walk
6/3/2012 1:38:34 PM
away
I agree with Ruchi that it is important to know when to walk away. Related
to my experience we are in a contract that we should have walked away in the
beginning. The only positive thing that my company is getting out of this
deal is that we are getting past experience with this type of work in the
contract. This will help in the future and being able to get related work but
we are barely making a profit and are in a business relationship where the
subcontractor is in charge of the whole deal based upon their relationship
with the client. The only reason we were needed in this situation is because
we are a sole-source 8A and the client wanted this type of contract but also
wanted the other subcontractor who is not an 8A. So we walked into a
situation where we are essentially the "shell" and have no say in most of the
project. Based on this we will be able to know in future contracts what to
look for if the client is seeking this type of arrangement that will essentially
just make us a vessel so that they can get the people that they want, not
necessarily the people that they need to do the work.
RE:
Know
when
Tiffany Terrell
to
walk
away
6/3/2012 2:55:27 PM
Ruchi you made an excellent point and I can agree. Although gaining new
business as a seller or obtaining new services or products as a buyer is often a
goal, knowing when to walk away is just as important. I think that it also goes
back to understanding the WIN/WIN concept. I think that both sides need to
understand their limits and when even further negotiation won't help the
situation. I have worked with potential clients where a solution proposal was
not working out for both of us. I do feel that when these types of situations
arise that it's important to try and move forward positively so that when future
opportunities arise there won't be any animosity.
State your
requirements
in performance Trudy-Ann Dyer
terms
6/3/2012 7:08:03 AM
For a successful project outcome it is very essential to have clear requirement stated
for performance evaluation, be clear in communicating those requirements to vendors
and to evaluate accordingly. This ensures that both parties are on the same page and
know what expectations are for the business relationship. The seller determines the
scope of the venture, the vendors have the opportunity to determine if they can handle
the project and perform to the expected standards.
Know
market
and
industry
practices
Yelena Magid
6/3/2012 4:56:24 PM
Knowledge of current market and industry practices is important to have a better advantage during
negotiations. For sellers this strategy involves intelligence gathering about competition, and for buyers
allows comparing prices and quality of products/services offered. This knowledge will assist in
decision-making process by providing concrete facts. We are constantly using this technique in
everyday lives; for example, if looking for an appliance first we find out what market has to offer and
then search for the best possible deal for the chosen product.
RE:
Know
market
Felicia Walters
and
industry
practices
6/3/2012 11:40:50 PM
It's really not about having an upper hand. It's about being appropriately
prepared. When entering negotiations you need to have fulfilled your
research requirements beforehand. There's an important need to be well
informed. It also helps to have a basis about what other organizations are
doing in the industry, whether they are competition or not.
RE:
Know
market
Kathryn Saura
and
industry
practices
6/3/2012 6:37:10 PM
Yelena,
I definitely agree that as a buyer, knowing current market and industry
practices is beneficial to comparing products and services. Other than
comparing prices, reading product reviews is something I usually do before
investing in something. It helps in my decision making process to know not
only what will be most affordable but also what will be most valuable
towards me and worth the cost. Additionally, as a seller it is important to
know your competitors so that you know what competitive advantages to
highlight with your product and how to differentiate your product or service
from others in the same market. Great post!
RE:
Know
market
Bryant Windham
and
industry
practices
6/3/2012 10:01:25 PM
I would agree with Yelena and Kathryn. Knowing the current market
is everything. If you are in market for a product and don’t do market
research you could spend too much or buy and out dated product.
When I was a drug rep we had to stay on top of our drug and all the
drugs in our marketplace as to make sure that we sold on the
differences.
Closing
Comments
Professor Gordon
6/3/2012 9:40:13 PM
Class,
Best practices are just in the end great recommendations based upon previous
experience. In some cases, the recommendations are not situational - such as using a
good agenda. In other cases, the recommendations are situational as they are based
upon different people and circumstances. What is important it so know these
recommendations in the future so that if an appropriate situation comes up, a
person knows the tools available to use. The more tools that one has for a job, the
better off that one will be.
Now that we have reached the end of the week’s discussions about best practices, I
would like to offer this counterpoint to best practices. Although I do not agree with
all the points of this article, this author does offer another point of view that should
be reviewed. See the below link and make your own judgment, I promise not to
cringe.
http://blogs.hbr.org/hbr/cramm/2009/08/are-we-failing-theory-or-is-th.html
In closing, it is not critical to remember all the best practices presented, but to know
a few that you feel apply the most and to know where to find the other best
practices when the situation demands it.
All the best,
Robert