In technical negotiations, address four specific challenges.
Negotiating technical contracts, software licensing agreements, and business analytics services often differ from standard transactional negotiations. Usually, a company must address one or more of the four specific challenges:
1. Technical knowledge or subject matter expertise
Negotiating over technical systems or endeavors often requires a more profound understanding than available in secondary sources. Those trained in data science, software systems, and technology should not assume that the negotiators on the other side have such deep knowledge or any formal training in the respective areas. Such an assumption can lead to a serious misunderstanding.
It is often the case when lawyers with no subject matter expertise represent a company at the negotiating table.
2. Performance guarantees
When highly complex projects are involved, no one can be sure whether the systems will perform or the services will produce results as expected. Different estimates of the effects can lead to negotiation conflicts and deadlock.
Consider marketing and business analytics companies offering their services and expertise during the pandemic. In many instances, their advice brought in surprisingly profitable results. In some industries, for example, plastic machinery, the strategic direction did not do much for the clients.
3. Face
Those who design, develop or champion new systems become strong influencers when negotiation outcomes can affect their position in the corporate environment. Technology leads – and their egos – can complicate otherwise more logical dialog.
Blackberry kept using a closed operating system and shunned the business platform approach not supported by the internal IT organization. Due to its market share at the time, its clients reluctantly agreed to buy a minimum quantity of smartphones. But, a few internal “app” developers were no match for Android and iPhone platforms open to all developers and entrepreneurs.
4. Organizational Change
The negotiated agreements may necessitate organizational changes provoking conflicts during implementation. The technical support group may have trouble maintaining or repairing new technology or accessing its intellectual information.
Negotiators in technical and scientific deals must take meaningful actions to avoid these traps. In Dhakaar’s negotiation training (and also in the book, “The world is bazaar. Life is a Negotiation”), I have identified three ways of sidestepping these difficulties:
Structure other party’s expectations by sharing pertinent information early and wholly to build trust.
Jointly manage complexity and uncertainty.
Develop a specification, agreed upon in advance, for strategic realignment.