Negotiation and Collaboration Case Studies

Retail organization uses Negotiation Through Collaboration program to provide structured negotiation skills that improve profit margins

Industry: Retail

A large retail organization operating in a down market identified the need to improve associates’ negotiation skills when dealing with suppliers. Negotiation training had been inconsistent and ineffective, and associates were under pressure to reduce the number of vendor relationships and to deliver higher margins. Novations provided a modularized approach to its Negotiation through Collaboration program, which focuses on creative problem solving and building long-term relationships with suppliers. Several hundred associates took advantage of the program over several months, beginning with core negotiation skills and moving on to the individual modules relevant to their function in the organization.

Critical Issues

Provide structured training for associates to increase their skill at negotiating with vendors and improve profit margins.
Emphasize the importance of planning and provide tools for effectively doing so.
Employ customized case studies and skill practice sessions to prepare associates for successful in-the-moment negotiations.

Solution

Senior leadership was able to take advantage of Novations’ modular Negotiation through Collaboration training program to provide employees with the skills and strategies needed in their specific roles in the organization. All participants began by learning a core foundation of negotiation skills and then moved on to specialized training. Extensive customized case studies were used as were skill practice sessions to provide associates with hands-on experience. The relevance of the training was heightened by using the client’s own trainers, rather than Novations trainers, to facilitate the program.

Results

Several months after their training was completed, participants were asked to assess how well the tools and skills were working for them. One participant estimated that his newly honed skills in backing up his statements with financial facts and in using silence to his advantage had already added $100,000 to the company’s bottom line. Another reported an estimated increase of $400,000 in gross profits due to his newfound ability to enter into negotiations with a detailed action plan and effectively stick to the plan.

view all case studies