Tuesday, February 23, 2010

It has been a few decades since we have become a truly global economy. My first venture in international business back in the 70's was with ships parts purchased in Kao --sung Taiwan. It was there in a back alley I entered my first negotiation for brass portholes from the ship wreaking yards. I quickly learned I wasn't much of a negotiator. I found my win-win mindset didn't work and no amount of reasoning with good facts like shipping costs, export taxes, import expense and the value of a new relationship with me could budge the seller. I was convinced they where super negotiators and they must be born great. It must be in their DNA. Maybe it was the culture. At any rate they were tough and I paid their prices.

Fast forward to Q4 2009 and my how things have changed. Today I teach my system of negotiations and then I coach and support what I teach. Just last quarter a client of mine had decided that results from negotiation training, and coached sales negotiations mattered so they had to be tracked. They did this by challenging Camp Negotiation Systems to demonstrate results above and beyond the norm that gave them a return on their investment in Camp training. Of course I accepted eagerly. For years we had clients with great results but never really tracked. I guess you could say we just didn't bother.

Here is how they did it and I would recommend this to all corporations and individuals who negotiate. The CFO issued a desired gross margin from each measurable sales negotiation. The desired gross margin was set and the team and I would then prepare for the negotiation. The first of eleven such sales negotiations for the quarter were in China. As you will remember I thought them born to negotiate as a rookie in the 70's and now I saw them as highly respected opponents to negotiate with but not super negotiators. The first $50 Million negotiation took the preparation of nine of the Camp checklists and logs. The team executed and the results where a $4 Million gain above desired gross margin and a bonus increase of market share of 15%. In 5 negotiations totaling $25 Million the total gain was $5.5 Million and a total increase in market share of 25% in three of the 10. All desired gross margins where achieved in the remaining 5. So when results count and the Camp System of Negotiation is applied any where in the world, you might say magic happens.

Jim Camp is the author of two best selling books on negotiations. He serves as a negotiations coach to global corporations, and individuals, and is CEO of Camp Negotiation Systems. Visit his web site at http://bit.ly/dv9oPt for negotiation insights and ideas.