Lecture given at ESC Rennes in March 2015

1. Jacques
Folon
www.folon.com
Partner
Edge
Consulting
Maître
de
conférences
Université
de
Liège
Professeur
ICHEC
Brussels
Management
School
Professeur
invité
Université
de
Lorraine
(Metz)
ESC
Rennes
Law and contract negotiation
Contract negotiation

3. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

4. CONTRACTS ARE IMPORTANT

5. What is contract negotiation?
Negotiation is the act of
two parties discussing
the pros and cons of a
particular contract at
hand in an attempt to
arrive at an
agreement.

7. The Market
The Market Swings Both Ways
How to adjust your planning to work within the
current environment
•“Sellers’” markets versus “Buyers’” markets
•Where the market is today
•Be flexible
•Explore new destinations

10. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

11. Negotiation skills are important

12. Negotiation skills
What are the 5 most important negotiation skills?

23. PERMANENT IMPROVEMENT

24. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

25. Basic principles of contract negotiation

26. Myth n°1
Negotiation is only for the pros.
WRONG.
Negotiation is how we learn to use our skills and
qualifications to their fullest extent.
As we are all natural sales people (we sell ourselves
and our services daily!), we must learn to lay out our
cards for a contractual agreement and play our hand.

27. Myth N°2
Negotiation is an easy way to lose a contract.
If done properly, one should never worry about losing a
potential contract with a client.
As long as a middle ground is met, both parties should be
happy to an extent.
If you try to sway everything to your favor, and it is not a win-
win for both parties, you can potentially lose the opportunity.

28. MYTH N°3
I’m not good enough to negotiate.
Absolutely wrong.
We all have certain talents and skills that make us stand out
in the marketplace.
Do your research, take time to figure out what you can over
deliver in, and always use it as your secret weapon in
negotiating with a client.
If you can surprise them and make their lives easier
somehow, do just that.

31. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

33. Phases of contract negotiation

41. Lease or buy ?

42. NEGOTIATION CONTEXT
What
agenda
should
be
followed?
Where
will
the
nego7a7on
be
held?
How
long
will
the
nego7a7on
take?
What
agents,
observers
or
advisers
will
be
involved
in
the
nego7a7on?
What
might
be
done
if
nego7a7on
fails?
How
will
we
keep
track
of
what
is
agreed?
How
do
we
know
whether
we
have
a
good
agreement?

43. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

45. THE COMMUNICATION

46. QUESTIONS DURING CONTRACT NEGOTIATION

47. QUESTIONS DURING CONTRACT NEGOTIATION

50. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

51. ADVANTAGE OF
WORKING IN TEAMS

52. RESOURCES
Personnel.
Sufficient
staff,
with
the
right
experience
and
skills.
Finance.
There
must
be
an
adequate
budget.
Time.
Sufficient
and
appropriate
7me
must
be
set
aside.
InformaHon.
Informa7on
–
about
the
supplier,
the
market,
environmental
factors,
bargaining
posi7ons
and
so
on
–
is
a
key
resource
for
nego7a7on.
Space
and
faciliHes,
if
the
nego7a7on
is
to
be
conducted
via
a
face-­‐
to-­‐face
mee7ng
in
a
chosen
venue.
InformaHon
and
communicaHon
technology
(ICT)
resources,
if
the
nego7a7on
is
to
be
conducted
via
‘virtual’
mee7ngs,
using
telephone
conference
calls,
tele-­‐conferencing
or
web-­‐conferencing

53. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

54. Necessity of supplier’s performance measurement

56. Pricing range of negotiation

63. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

64. Conflict in negotiation
When a conflict is present, it makes a negotiation seem
more necessary than when there is not.
Conflict typically leads to less of something for both
parties.
For example, less money is to be made if the deal is to
move forward with no negotiation.

65. Question if you are struggle in a conflict
1) Are all the parties interested in negotiating?
2) If not, why is one or more of the parties reluctant?
3) Can anything be done to make negotiation more attractive to them?
4) Do the parties all know their alternatives to a negotiated settlement?
5) Do they feel those alternatives are good?
6) Do the parties have a legitimate leader or representative who could
effectively negotiate for them?
7) Is a forum available for negotiations?
8) Is a credible mediator available to assist in the negotiations?
9) Do the parties agree on the credibility of this mediator?

67. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

68. History of a contract negotiation

70. Contract negotiation process

71. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

75. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.Telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

78. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

82. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

84. 1

85. 2

86. 3

87. 4

88. 5

89. 6

90. 7

91. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

94. EVALUATION

95. EVALUATION

96. Table of content
1. Introduction to contract negotiation
2. Contract negotiation skills
3. Basic principles and myths
4. Phases and main types of contracts and negotiations
5. Context & communication
6. Teams & resources
7. Pricing and KPI’s
8. Conflicts in contract negotiation
9. Contract negotiation process
10.Emotional intelligence
11.telephone & virtual contract negotiation
12.Contract negotiation best practices
13.The seven habits of bad negotiators
14.Closure & evaluation
15.After contract’s signature

97. CONTRACT SIGNED BUT…

98. CONTINUOUS PROCESS

99. Credits
Contract Negotiations: Prepared and Fair are Effective in Any Market http://fr.slideshare.net/KristiCaseySanders/contract-negotiations-
prepared-and-fair-are-effective-in-any-market?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=2
Contract negotiation, A.Abouhana,http://fr.slideshare.net/AdelAbouhana/contract-negotiations-40072105?qid=0ca75703-dde2-4bbf-
a3bb-8c3f0615918d&v=default&b=&from_search=5
The ultimate negotiation guide,http://fr.slideshare.net/coquitoday/the-ultimate-contract-negotiation-guide?qid=0ca75703-dde2-4bbf-
a3bb-8c3f0615918d&v=default&b=&from_search=7
Contract negotiation, K. Sanders,http://fr.slideshare.net/KristiCaseySanders/contract-negotiations-beyond-the-basics?qid=0ca75703-
dde2-4bbf-a3bb-8c3f0615918d&v=default&b=&from_search=8
Negotiating and Contracting in Procurement and Supply, CIPS,http://fr.slideshare.net/timkumwenda/negotions-and-contracting?
qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=23
Elizalde, D., how to successfully negotiate your contracts,http://fr.slideshare.net/daniel_elizalde/how-to-successfully-negotiate-your-
project-contracts-daniel-elizalde?qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=33
Steger, M., The seven habits of highly ineffective contract negotiators,http://fr.slideshare.net/KeglerBrown/steger-seven-habits?
qid=0ca75703-dde2-4bbf-a3bb-8c3f0615918d&v=qf1&b=&from_search=38