Business Negotiation Training

• Enhance the negotiation capabilities of your organisation • Establish a nuanced approach to negotiation through our structured analysis and preparation framework • Unlock the full potential of your diverse supply base • Maximize ROI through focused professional training that directly improves your bottom line • Proven training concepts based on own as well as international research combined with extensive practical experience

Business Negotiation Training

DILF Negotiation Academy – Research based negotiation capability building

In business you don’t get what you deserve – you get what you negotiate!

DILF Negotiation Academy – Research based negotiation capability building

Our negotiation training philosophy

Many people advocate win-win as the best and most sophisticated approach to negotiation. We don’t think that this is always the case. It may be, given the circumstances related to a particular negotiation – but not always.

The win-win approach to negotiation is a product of the Harvard Law School. The argumentation behind this approach is perfectly designed for diplomacy related negotiation and mediation processes. However, in our view, it is not always applicable to the more industry-related commercial negotiations that most of our customer organisations are faced with.

Not disregarding the contribution of the “Harvard approach” to negotiation, it is our opinion that some of the more altruistic “turn-the-other-cheek” elements of this approach need to be replaced and/or combined with a more pragmatic and businesscentred approach to inter-firm interaction.

At the same time it is important to avoid “going over-board” in the opposite direction. This has lead to numerous unhealthy examples of excessive short-term, and more or less exclusive, focus on maximizing the competitive intensity on the supply side.

Thus, in order to design the most appropriate strategy for a given negotiation, there is a need to take one step back and consider both the broader business context and the specific processes in which the particular negotiation is embedded.

DILF Negotiation Academy – Research based negotiation capability building

In order to accommodate this view, in regard to DILF negotiation training, we distinguish between On-stage and Off-stage training elements: • In On-stage negotiation training, the focus is on “what we do” and “how we do what we do” when we negotiate and interact with our business partners.

• In Off-stage negotiation training, the focus is on “why we (have to/are able to) do what we do”, applying a broader perspective, in order to establish a better understanding of the context of a particular negotiation, before we sit down at the negotiation table (when we sit down, it is probably already too late).

In general, it is our strong belief that we need to understand and prepare (in that order) before we, in a meaningful and constructive manner, can sit down and conduct a given negotiation.

At the core, and to a great extent determining how we both seek, interpret and act on information, lies our personality. Accordingly, it is clear that the personality profiles of individual negotiators will strongly impact the (inadequate) result of any negotiation.

Off-stage elements of training

Understand

Mutual value/ interest perceptions Risk supply market uncertainty Risk mapping Upstream

Market management Downstream

Prepare

Value/interest mapping

Conduct

On-stage elements of training

DILF Negotiation Academy – Research based negotiation capability building

Power & dep. mapping

Behavior Personality Process/ tactics (DiSC) Verbal/non-verbal Communication

Hence, an important aspect of the DILF approach to negotiation is the linkage between DiSC personality profiles and the way negotiation is conducted.

Power & dependency − internal and external stakeholders

Upstream

Analyses scope Downstream

The DiSC personality profiling tool is a tool that describes the main motivational characteristics of an individual in e.g. a commercial context. It is an extremely useful tool for

How you see yourself in relation to the environment More powerful

How you perceive the environment Unfavourable

D

i

C

S

How you perceive the environment Favourable

How you see yourself in relation to the environment Less powerful

• the individual in establishing a better understanding of own instinctive pattern of behaviour, and in introducing an improved consciousness in regard to appropriately controlling and adapting this instinctive behaviour to particular contexts, and • management in understanding the natural strengths and limitations of their HR base, thus facilitating an improved means of supporting the individual actors in their work efforts.

The DiSC tool is an integral part of the DILF negotiation training program, and it supports the argumentation of the on-stage as well as the off-stage elements.

This on-stage/off-stage approach to negotiation training facilitates a holistic drill-down process, linking overall sourcing and category strategies to the strategies related to a particular supplier and/or a particular negotiation, and ultimately anchoring these strategies in a conscious consideration of the possible strengths and limi­ tations related to the personality profile of the particular em­ployee planned to conduct the negotiation.

Corporate strategy Purchasing strategy Category strategy Relationship strategy Negotiation strategy Negotiation profile

DILF Negotiation Academy – Research based negotiation capability building

Everybody has their own preferred approach to negotiation. This instinctive pattern of behavior is a product of the personality profile of the individual person and his or her experience and history.

Some people have a tendency to act highly competitive whereas others have a more co-operative or even accommodating approach to negotiation and to interaction in general.

Unfortunately, in the multifaceted business context that most of our customer organisations operate, mastering one particular approach to negotiation is not enough. On top of that, given the highly dynamic nature of many industries, what was appropriate six months ago is likely to have changed today.

How important are we to them?

Seller

Result or relationship?

Buyer

How important are they to us?

Co-operative Competitive

So the key issue is not “How good am I at my preferred approach?”

It is rather a question of being able to analyze and understand the context of a particular negotiation, asking questions such as: • How important are we to them and why? What are their alternatives – short term/long term?

• How important are they to us and why? What are our alter­ natives – short term/long term?

• and based on this understanding determine which approach is appropriate.

Consequently, it becomes important to master different approaches to negotiation, adapting behaviour and style to the to the particular situation you are embedded in.

DILF Negotiation Academy – Research based negotiation capability building

Accomodating

The structure of the DILF Negotiation Training Program constitutes a multi-level framework, facilitating and supporting a natural progression of the negotiation capabilities of the individual participants.

The training modules have been designed in a way that allows the individual elements to be modelled (adapted, extended or compressed) to suit the requirements for commercial negotiation training for almost any organisation.

“Core” negotiation training LEVEL 1

“On-stage/off-stage” specific training LEVEL 2

LEVEL 3

LEVEL 4 (aimed at specialist functions)

Off-stage training

Power & dependency

Stakeholder mgmt. (incl. cultural aspects)

Negotiating commodities/cost-drivers

Professional negotiation behaviour

Conflict management

Team negotiation/ group dynamics

Business negotiation

On-stage training

Graduates of level 2 can be tested and awarded the title Certified DILF Business Negotiator Level 1+2

Graduates of level 3 can be tested and awarded the title Certified DILF Business Negotiator Level 3

DILF Negotiation Academy – Research based negotiation capability building

The program includes seven individual modules, five of which (Levels 1-3) constitute the natural progression path for most actors in a professional sourcing organization, and two “specialty” modules (Level 4) whose relevance is linked to particular pur­ chasing functions.

The structure of the individual training modules is interactive and exercise focused, with a combination of theory and practical negotiation exercises.

DILF Negotiation Academy – Research based negotiation capability building

Open-structure and in-house In DILF we do both open-structure (where participants can sign up individually) and in-house (participants all come from one company) negotiation training. The distribution of these different forms is approximately 50/50.

Growing out of a procurement context, our approach to negotiation is built on applying negotiation training and techniques to the business critical processes of sourcing, supplier- and stakeholder management. Following from this, it is our view that only limited value is derived from presenting an organisation with a concep­ tually detached negotiation training program.

Our focus, therefore, is on integrating the negotiation training into the existing sourcing related tools and processes of our customers’ organisations, supporting and upgrading these processes by means of a practically applicable framework of negotiation tools and techniques.

Over the past decades, designing or participating in numerous in-house training academies at large international clients, we have made links to many of the different sourcing process tools of these customer organisations, adapting these often “one-size-fits-all” models to cater for the more nuanced supplier landscapes that most of our customers are embedded in.

During the latest years, DILF has conducted in-house negotiation training for, among others, the companies below: • • • • • • • • • • • • • • • • •

Vestas Wind Systems Nordic Sugar Orkla Danfoss Coloplast Grundfos Carlsberg Findus Group Nordea Sanistål Dovista (Velfac/Rationel) TrygVesta GN Resound Lemvigh-Müller MT Højgaard FMT (Forsvarets Materiel Tjeneste) Terma

Individual participant evaluations are conducted at all training modules to ensure the highest possible degree of satisfaction and to make sure that relevant participant comments and suggestions are collected in a structured manner and fed into the training modules on a continuous basis.

DILF Negotiation Academy – Research based negotiation capability building

Testimonials

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Since 1994 Orkla has conducted management training within B2B marketing and business understanding in general. We have run more than 20 classes, each taken through four programs of 3-4 weeks’ duration. In total more than 350 managers from the global Orkla organisation have finished the programs.

Nordic Sugar has experienced a significant positive impact from the DILF Business Negotiation Training Program we have conducted in our organization.

Several teams consisting of purchasing as well as sales professionals, spanning six countries, have been through the training program.

Throughout the entire process, negotiation training has been an integral part of the training programs, and Danish Logistics & Purchasing Forum (DILF) has been the sole provider of this part of the training.

The basic principle on which the DILF negotiation training modules rest, is to ensure a context specific approach to the negotiation process, and seen in relation to the category management structure of Nordic Sugar, this has been extremely relevant for us.

As responsible for the training programs, as well as the participants, I have been very satisfied with both the structure, the contents and the professional manner in which the negotiation training modules have been conducted. I especially want to emphasize the strength of the DILF negotiation instructors in addressing practical challenges brought up by the participants, and placing these in a relevant context, relating the issues to the planned content of the training modules.

As stated above, we are very satisfied, and I will be pleased to act as reference for the DILF Negotiation Training Program on behalf of Orkla.”

Christian-Andreas Berg KAM/Business Developer Orkla B2B Academy

The pedagogical approach, the flexible modular structure with relevant theory followed up by practical negotiation exercises, again followed up by direct feedback from the instructors, ensures a strong learning experience for all participants.

The instructors were theoretically very capable and had a solid international background, and they were able to make the training program interesting and lively as well as highly effective.”

Peter M. Nielsen Senior Vice President Nordzucker Group

DILF Negotiation Academy – Research based negotiation capability building

Morten M. Møller, Ph.D. Director, Procurement Practice, DILF Besides his employment at DILF Morten is employed as associate professor at Aalborg University, responsible for a large research project on sourcing excellence.

He has been active in the Danish purchasing and logistics community as a consultant and teacher and has helped numerous companies develop their sourcing strategies, implement SRM, and has worked with supplier segmentation in both theory and practice.

Before joining DILF, Morten was Director for Global Procurement at Lego A/S. Preceding this, he spent 10 years in various purchasing and business development positions at B&O and Arla Foods.

Morten holds a Ph.D. in SCM from Aalborg University and a M.Sc. in Strategy from Aarhus School of Business. He has followed the Executive Negotiation training program at Harvard Law School (2008).

Contact details at DILF: mm@dilf.dk

Robert Ibsen, M.A., BSc. Programme Manager, Negotiation and Intercultural Management, DILF Besides his employment at DILF Robert is employed as associate professor at Copenhagen Business School. Robert has been lecturing for more than 25 years at CBS. Main subjects taught are Intercultural Communication and Management, Negotiation Skills, Organisational Behaviour, Marketing, SCM, Globalization and Regional Integration, and International Trade.

Robert also runs his own consultancy firm working with staff and management development.

He teaches courses for expatriates on Danish culture and management styles.

He has travelled extensively and lectured on Intercultural Communication and Management at universities and business schools in a wide range of countries, including Germany, Holland, Belgium, France, England, Poland, the USA and Egypt.

Robert holds an M.A. in communication and languages and a BSc. in marketing from Copenhagen Business School. He is a certified DiSC instructor, and has followed the Executive Negotiation training program at Harvard Law School (2007 & 2008).

Contact details at DILF: ri@dilf.dk Lars Bjerregaard Mikkelsen, Ph.D. Programme Director, RM & Negotiation, DILF Besides his employment at DILF Lars is employed as associate professor at Aarhus University.

At DILF Lars is responsible for the relationship management and negotiation area. Besides developing the DILF Business negotiation training program, he works with designing individual negotiation strategies for large international accounts and subsequently coaches in the implementation of these.

Earlier he has been working within the field of international sales & marketing management at Dronningborg Industries/Massey Ferguson and The Stibo Group for more than a decade.

Lars holds a M.Sc. (1994), an Executive MBA (2002) and a Ph.D. (2006) from Copenhagen Business School.

He is a certified DiSC instructor, and has followed the Executive Negotiation training program at Harvard Law School (2007 & 2008).

He was elected “student of the year” in his MBA class in 2002, and was chosen as “Teacher of the year” by the master-class graduates at CBS in 2005.

Contact details at DILF: lm@dilf.dk

DILF Negotiation Academy – Research based negotiation capability building

Instructors

At DILF, the negotiation training instructors all have an extensive and relevant theoretical base, combined with significant practical experience from within sales and purchasing. On top of this, the instructors conducting the individual training modules are also the ones responsible for developing and continuously refining the training material. This combination of theory, practical experience and ongoing direct customer interaction, ensures a solid link between negotiation research and practical industry related issues, and at the same time facilitates an unfiltered knowledge and bestpractice transfer between different industries.

Capability building within negotiating competences is probably the area that gives the highest ROI, but of course you need to insert coins to hit jackpot!

Contact Lars B. Mikkelsen • lm@dilf.dk • Mobile +45 2635 7254 DILF – Danish Purchasing and Logistics Forum Vesterbrogade 149 • DK-1620 Copenhagen V Tel. +45 3321 1666 • Fax +45 3321 1566 • www.dilf.dk