Firms should know when to 'walk away' from contract negotiations
Exiting a poor deal is a key skill
23 July 2010
Firms should be aware of when to walk away from contract
negotiations, it has been claimed.
Rob Enderle, a former contract negotiator at IBM, claimed firms
should be able to acknowledge the signs of a poor deal and exit
negotiations.
He wrote on itbusinessedge.com: "Beware if the company you are
negotiating with is undergoing a massive management change, looks
like it might be acquired by an unknown, is financially unstable,
is under criminal investigation, or has other elements that, when
factored in, make a relationship excessively risky."
Mr Enderle said negotiations are doomed to fail if there is no
middle ground as each side will not make any concessions and any
agreements will ultimately be broken.
Firms should also end talks if faced with unreasonable demands,
while those that make such irrational commands could end up with a
damaged reputation.
Furthermore, a lack of integrity and trust can often result in
the collapse of negotiations, Mr Enderle added.